Introduction to Driveaway Insurance
Buying a new car or moving vehicles across states? You may not realize that the moment you drive that vehicle off the dealer’s lot, you need insurance protection. This is where driveaway insurance comes in.
Driveaway Coverage is a short-term policy designed to cover drivers when they are transporting or collecting vehicles — either for personal use, commercial delivery, or dealership operations. It ensures you are legally compliant and financially protected in case of an accident, damage, or liability during the journey.
In the United States, thousands of drivers, auto dealers, and transport companies rely on driveaway insurance every year. With costs varying by state and provider, it’s important to understand what this policy covers, how much it costs, and which companies offer the best value in 2025.
This guide explains everything about Short-term auto insurance— from cost breakdowns, coverage types, and best providers to common FAQs. Whether you’re a new car buyer or a dealership manager, you’ll find practical insights, examples, and trusted resources to make the right choice.
Table of Contents
What is Driveaway Coverage?
Driveaway Coverage is a temporary motor insurance policy that covers a vehicle when it’s being moved from one place to another. The term is commonly used when:
- A buyer drives a new or used car home after purchase.
- Dealers transport cars between showrooms.
- Drivers deliver vehicles on behalf of a company.
Unlike standard auto insurance, which is long-term, Driveaway Coverage is short-term and flexible — usually lasting a few hours, a day, or up to a few weeks.
🔎 Example Scenario:
- You buy a car in Texas but live in California. Instead of waiting for your permanent insurance to activate, a 7-day driveaway insurance policy allows you to legally drive it home without risk.
Table: Difference Between Standard Auto Insurance vs Driveaway Coverage
| Feature | Standard Auto Insurance | Driveaway Coverage |
|---|---|---|
| Duration | 6–12 months | Hours to a few weeks |
| Purpose | Long-term ownership | Short-term driving/transport |
| Who Needs It? | Everyday drivers | Buyers, dealers, transporters |
| Cost | $1,200–$2,000 annually (avg US) | $30–$80 per day |
👉 More detailed provider-wise costs here: Driveaway Insurance Cost in USA
National Association of Insurance Commissioners (NAIC) – US insurance regulation info.
Insurance Information Institute – Stats & insights.
Driveaway Insurance Cost in USA (2025 Update)
When buying or transporting a vehicle in the US, the first question most drivers ask is — “How much will driveaway insurance cost me?” The good news is that driveaway insurance is generally affordable compared to standard annual car insurance, since it is short-term coverage.
On average, driveaway insurance in the USA costs between $30 to $80 per day, depending on the vehicle type, driver profile, and coverage duration. For weekly policies, prices usually range between $150 to $400.
👉 For a deeper breakdown, check our dedicated article on Driveaway Insurance Cost in USA.
Factors That Affect Cost
- Coverage Duration – Longer policies (7–14 days) cost less per day compared to 1-day coverage.
- Vehicle Type & Value – High-value cars (luxury or sports) attract higher premiums.
- Driver’s Age & History – Young drivers (<25) or those with accident history may pay more.
- State Regulations – Some US states require minimum liability coverage, raising costs.
- Provider Rates – Each insurer uses different pricing models.
Table: Average Driveaway Insurance Cost in the USA (2025)
| Duration | Economy Car | Standard Sedan | SUV/Truck | Luxury Vehicle |
|---|---|---|---|---|
| 1 Day | $30–$40 | $40–$50 | $50–$65 | $70–$80 |
| 7 Days (1 Week) | $150–$200 | $180–$250 | $220–$300 | $300–$400 |
| 14 Days (2 Weeks) | $280–$350 | $320–$420 | $380–$500 | $500–$650 |
👉 These are average market estimates based on US insurance providers in 2025. Actual rates vary by state and insurer.
According to the Insurance Information Institute (III), short-term insurance policies often cost more per day than annual policies but provide flexibility for temporary needs.
Types of Driveaway Ins. Coverage
Driveaway Ins. is not a one-size-fits-all policy. Depending on whether you are an individual car buyer, a dealer, or a professional transporter, there are different coverage options available. Understanding these variations will help you choose the right plan and avoid unnecessary costs.
Temporary Driveaway Ins.
This is the most common option for individuals who buy a car and need to drive it home. It provides short-term protection — anywhere from a few hours to a couple of weeks.
Example:
If you buy a used car in New York but your regular insurer cannot activate coverage the same day, a 7-day temporary driveaway policy ensures you can legally and safely drive it.
👉 For a detailed comparison of short-term and dealer policies, read our guide: Temporary Driveaway Insurance vs Dealer Coverage.
Dealer Driveaway Ins.
Dealerships often move cars between showrooms, auction sites, or directly to customers. Dealer driveaway coverage is tailored for businesses that regularly handle vehicle deliveries.
It typically covers:
- Multiple drivers under the dealership name.
- Damage while transporting unsold vehicles.
- Liability coverage if an accident occurs during delivery.
Transporter Driveaway Coverage
Transport companies that deliver vehicles across states require this type of coverage. Unlike temporary or dealer plans, it often includes higher liability limits because vehicles may be driven long distances and across multiple jurisdictions.
Example:
A professional driver transporting cars from Texas to Florida for a dealership may use transporter driveaway coverage to protect both the vehicles and third parties.
Table: Comparison of Driveaway Ins.Types
| Type | Ideal For | Duration | Average Cost (2025) | Coverage Highlights |
|---|---|---|---|---|
| Temporary Driveaway | New/used car buyers | 1–14 days | $30–$80 per day | Covers single car, basic liability + damage |
| Dealer Driveaway | Car dealerships | Ongoing (flexible) | Varies by fleet size | Multiple drivers, multiple cars, liability included |
| Transporter Driveaway | Transport companies | Per contract/job | $300–$600 per trip | Higher liability, long-distance, multi-state |
Best Driveaway Insurance Providers in USA (2025 Reviews)
Choosing the right provider can save you both money and stress. While many insurers offer standard car policies, only a handful specialize in driveaway or temporary vehicle insurance.
👉 For a detailed review of each company, see our full guide: Best Driveaway Insurance Providers.
Top Driveaway Insurance Providers in the USA
1. Tempcover
- Popular for short-term driveaway insurance.
- User-friendly online quotes.
- Average cost: $35–$75/day.
- Best for: individual car buyers needing quick coverage.
2. Cuvva
- App-based insurer with flexible hourly/day policies.
- Transparent pricing & modern UX.
- Average cost: $30–$70/day.
- Best for: younger drivers (under 30).
3. Surefire Insurance
- Focused on dealers & commercial clients.
- Covers fleets, auctions, and dealer movements.
- Pricing varies by fleet size.
- Best for: dealerships managing multiple cars.
4. GoShorty
- Known in UK market but expanding into US.
- Affordable temporary coverage.
- Average cost: $25–$60/day.
- Best for: budget-friendly short trips.
5. IRMI Driveaway Coverage
- Provides niche definitions & tailored coverage.
- Best for: transport companies needing higher liability.
- Per job pricing: $300–$600.
Table: Driveaway Insurance Providers – Quick Comparison
| Provider | Best For | Average Daily Cost | Key Feature |
|---|---|---|---|
| Tempcover | New/used car buyers | $35–$75 | Easy online quotes |
| Cuvva | Younger drivers | $30–$70 | Flexible app-based cover |
| Surefire | Dealerships | Varies | Fleet & dealer coverage |
| GoShorty | Budget-conscious | $25–$60 | Affordable short trips |
| IRMI | Transport companies | $300–$600/job | Higher liability limits |
Driveaway Insurance for New Car Buyers
For most first-time or repeat car buyers in the US, the excitement of getting a new vehicle can quickly turn stressful when it comes to insurance requirements. Dealers usually won’t let you drive a car off the lot without proof of coverage. If your existing insurer can’t provide immediate activation, a short-term driveaway policy fills this gap.
Why New Car Buyers Need It
- Immediate Coverage Required: Most US states mandate liability coverage from day one.
- Out-of-State Purchases: If you buy a car across state lines, your standard insurance may not yet be active.
- Loan or Lease Terms: Lenders often require insurance proof before releasing the car.
Tips to Save Money on Driveaway Coverage
- Compare short-term vs dealer options: Sometimes dealer-provided coverage is costlier than a temporary online policy.
- Choose only the duration you need: If you’re driving the car home in one day, don’t buy a week-long plan unnecessarily.
- Check provider discounts: Some insurers offer bundled deals if you later switch to their annual policy.
Case Study: Out-of-State Buyer
Michael, a buyer from California, purchased a used SUV in Nevada. Since his permanent insurance wouldn’t activate for 48 hours, he chose a 3-day driveaway policy costing $120. This allowed him to legally drive the SUV back home, while meeting Nevada’s temporary coverage requirement.
👉 For detailed scenarios and buyer-specific queries, see our dedicated guide: Driveaway Insurance for New Car Buyers – FAQs Answered.
How to Buy Driveaway Insurance Online in the USA
One of the biggest advantages of modern insurance platforms is that you no longer need to wait at a dealership or visit an agent to activate coverage. With a few clicks, you can purchase driveaway insurance online and get instant proof of coverage.
Here’s a step-by-step guide to make the process easier:
Step 1: Choose a Reliable Provider
Start by selecting an insurer that offers short-term auto coverage. Some well-known providers include Tempcover, Cuvva, and Surefire. Always check customer reviews and ensure the company is licensed in your state.
Step 2: Enter Vehicle Details
You’ll need to provide:
- Vehicle Identification Number (VIN)
- Make, model, and year
- Purchase/dealer location
This helps insurers calculate the exact premium for your car type.
Step 3: Provide Driver Information
Insurers will ask for the primary driver’s details such as:
- Age and license number
- Driving history (accidents, claims, points)
- Current address
Step 4: Select Coverage Duration
Decide whether you need coverage for a single day, a few days, or up to 2 weeks. Always buy only the time you need to save money.
Step 5: Review Quotes & Compare
Most platforms instantly generate a price. Compare it with at least 2–3 providers before confirming.
👉 Tip: Many companies offer discounts if you later switch to their annual policy.
Step 6: Make Payment & Download Policy
Once payment is complete, you’ll receive your digital policy documents and proof of insurance (often by email or app). You can use this immediately to register your car or drive it off the lot.
Step 7: Carry Proof While Driving
Always keep a digital or printed copy of the policy with you while driving home. Police and state DMVs may require immediate proof of coverage.
👉 For a list of trusted companies that offer instant policies, check our detailed guide on Best Driveaway Insurance Providers.
State-Wise Rules for Driveaway Insurance in USA
Driveaway insurance is regulated at the state level, which means requirements can differ across the country. While most states allow temporary coverage, some have stricter rules for liability and proof of insurance.
- California: Every driver must carry minimum liability coverage before leaving the dealership. A temporary driveaway policy is valid, but proof must be shown during registration.
- Texas: Dealers often provide short-term coverage, but buyers driving across state lines must check that their policy is valid nationwide.
- New York: The DMV requires insurance details before issuing permanent plates. A short-term policy can be used for this purpose.
- Florida: Known for higher accident rates, Florida often requires higher liability limits, which can increase driveaway policy costs.
👉 Always confirm with your local DMV website before purchasing a policy.
🔗 Useful external references:
California DMV – Insurance Requirements
Mistakes to Avoid When Buying Driveaway Insurance
Buying driveaway insurance is usually quick and simple, but in the rush of collecting a new car or arranging transport, many people make costly mistakes. Avoiding these errors ensures you get the right coverage at the right price.
1. Buying Longer Coverage Than Needed
A very common mistake is overestimating how long you’ll need the policy.
- Example: If you only need to drive your new car home the same day, buying a 7-day policy adds unnecessary cost.
- Tip: Always calculate your trip duration realistically — even a 24-hour policy may be enough.
2. Assuming Dealer Coverage is Always Cheaper
Many buyers think that accepting the dealer’s insurance offer is the easiest option. While it may be convenient, it’s not always the most cost-effective.
- Dealers often bundle insurance with other fees, which increases the price.
- Online providers like Tempcover or Cuvva may offer cheaper quotes for the same level of protection.
👉 Always compare at least two independent providers before saying yes to dealer coverage.
3. Ignoring Provider Licensing and Legitimacy
Not every website offering “cheap driveaway insurance” is licensed in your state. Buying from an unverified source can leave you without valid protection.
- Example: A driver in Texas purchased a policy online only to find it wasn’t valid outside Florida.
- Tip: Always check the provider’s license via your state Department of Insurance website.
4. Overlooking Policy Details
Some temporary policies cover only basic liability, leaving you exposed for damages, theft, or accidents.
- Example: A buyer assumed their short-term policy included collision coverage — but after a minor accident, they discovered it didn’t.
- Tip: Read the policy carefully. If you need comprehensive protection, choose a provider that offers it.
5. Waiting Until the Last Minute
Another mistake is waiting until you are about to drive away before arranging coverage. This can cause stress or higher last-minute costs.
- Better Approach: Arrange the policy online in advance. Most providers allow you to set the exact start date and time, so you can activate it when needed.
6. Not Considering the Upgrade Option
Many buyers treat driveaway insurance as completely separate from long-term insurance. In reality, some providers allow you to upgrade from short-term to annual coverage later — sometimes with discounts.
- Missing this option means paying twice instead of using one continuous plan.
FAQs About Driveaway Insurance
Q1. Can I drive a new car home without insurance?
No. Almost every state requires at least liability coverage. A driveaway policy ensures you can legally leave the dealership.
Q2. How long does a driveaway insurance policy last?
Most policies last from 1 day to 14 days. Some providers allow extensions if needed.
Q3. Is driveaway ins. valid across states?
Yes, most nationwide providers offer coverage that works in all US states. Always confirm before purchasing.
Q4. Does driveaway coverage cover accidents and theft?
Basic plans cover liability. Comprehensive temporary policies may also cover accidents, theft, or fire damage, depending on the provider.
Q5. Can I switch from driveaway insurance to a full policy?
Yes. Many providers let you upgrade to a standard annual policy once you’re ready, sometimes with discounts.
Conclusion – Is Driveaway Insurance Worth It?
Driveaway insurance is an essential tool for anyone purchasing or transporting a car in the USA. It provides short-term protection, ensures legal compliance, and gives you peace of mind while moving vehicles across states or directly from dealerships.
By understanding costs, coverage types, and provider options, you can make an informed decision that saves money and avoids risk.
👉 Ready to explore your options?
- Compare Driveaway Ins. Cost in USA
- See the Best Driveaway Ins. Providers
- Learn more in Temporary Driveaway vs Dealer Coverage
- First-time car owners should also read our dedicated guide on Driveaway Insurance for New Car Buyers
Bottom line: Driveaway Coverage is worth it for new car buyers, dealers, and transporters who need reliable short-term coverage.
