Temporary Car Insurance
Temporary car insurance
Temporary car insurance is a very short-term vehicle insurance policy that lasts from one day to four weeks (28 days). Temporary car insurance sales are going up and up as people become more aware of this type of policy’s existence and learn more about it.Temporary Car Insurance
But, why would anyone want to purchase temporary car insurance? Why insure your car for only a few weeks–or even for just one day?
Temporary car insurance is less expensive than traditional auto insurance which must be purchased for at least six months at a time.
The insurance company is taking much less risk on you when you buy temporary insurance, since it is on the line to pay any claim for only a brief period of time.
Statistically, the odds of you getting into an accident or having other insurance-covered car problems during a period of just one day or 15 days or 28 days are very small compared to a given six-month period.
So, one reason why someone may buy temporary car insurance is because they are strapped for cash at the moment but expect to be financially more stable in a month or two months, at which time they can buy traditional, permanent auto insurance.
But another reason to buy temporary car insurance is to cover a brand new car that has an insurance policy on it which has not yet kicked in because it is brand new.
New traditional policies almost always have a waiting period of five to fifteen days before they will cover claims (this helps to prevent insurance fraud).
But this impermanent vehicle insurance, since it is specially designed to be temporary, starts immediately–there is no waiting period, since that would cleary make zero sense if there were one.
Imagine the horror of buying a brand new car for $25,000 or $50,000 or even more and getting hit just as you’re pulling out of the sales lot–while you are uninsured, lingering in your waiting period!
With a temporary insurance policy in place before you drive off the lot, this nightmare (at least the financial end of it) is prevented.
You would simply buy a policy that lasts for the duration of your other policy’s waiting period before driving the car home.
If you are the parent of college students who can drive but who don’t yet have their own cars–and so they borrow yours–you can take out temporary car insurance policies to cover them whenever they visit from college.
So, they’ll be home for four weeks for Winterim break? Take out a 28-day policy. You don’t need to go through the hassle, or the expense, of adding them on to your own car insurance policy.
In this way you also prevent yourself from losing any special breaks or deals that you have on your policy due to it being lower risk coverage.
You can always use a short-term policy whenever you need to temporarily add some other drivers to be covered while driving your car.
If you are without a car and need to borrow one, but your friend or relative is reluctant because of the added insurance risk, you can offer to purchase a temporary car insurance policy that lasts for the duration of the time that you’ll be using their car.
This would significantly increase your chances of them saying “yes” to you.What if you find yourself test driving a used car that isn’t being sold through a dealership and doesn’t have any insurance on it? You can buy a temporary policy to cover that car during your test driving period.
You can do the same thing if you are driving a vehicle that you know is only temporarily yours for a few days or a few weeks.
The scenario might be that you are driving an old car for a little while while you save up to buy a newer one.
The leading companies in temporary auto insurance sales do their business online. All you have to do is fill in your basic information, accept a quote, charge the premium to your credit or debit card, and print out your new insurance policy.
Remember your coverage starts instantly when you pay, and you don’t have to talk to a salesman or an agent. This also gives us
another reason for you to consider this type of auto insurance: what if you need new car insurance coverage but are really pressed for time? In just a few minutes, your car is insured!
Now, this short term car insurance does have restrictions and limitations.
Depending on where you are attempting to purchase it, you may not qualify.
In some places such as the United Kingdom, short term auto insurance cannot be written on anyone under the age of 21–they are seen as too big of a risk.
Furthermore, in that nation you need to have had your license without interruption for at least one year to the day you apply for the temporary policy.
So first, know the regulations on this type of car insurance in your area.
But assuming you can qualify for a temporary car insurance policy, the type of coverage you get will be about the same as what you get with a permanent policy.
You’ll want to have at least liability insurance to protect against bodily harm, property damage, uninsured and underinsured other drivers, and physical damage.
You could choose to also put on passenger medical coverage and roadside assistance.
Again, what extras you can put on your short term car insurance policy will depend upon what the laws of your country or state are as well as on the insurance company.
You can see that there are a lot of reasons why temporary car insurance was designed and why it is now surging in how widespread it is.
There are times when it’s what you need and what serves your interests better as a driver.