Short term vehicle insurance, equally known as temporary car insurance, offers the same amount of coverage as the regular car insurance for a shorter period of time. Normal auto insurance policies should last 6-months to one year. Temporary auto insurance can be bought for as little as one day to two months, depending on the insurance provider.
In the United States, driving car without car insurance is illegal. If caught, you are subjected to hefty fines, points and potential suspension on your driver’s license, and higher rates on later insurance policies due to the strikes against your driving record. Additionally, should you get involved an accident while without insurance, you could end up paying medical and property damage expenses for an extended time.
When to buy Short Term Car Insurance:
People take out temporary vehicle insurance policies for a variety of reasons to refrain from driving with a lapse in insurance coverage. Here are some instances when one would purchase temporary insurance:
- In between vehicle insurance policies.If you’re switching insurance providers at a time that doesn’t automatically keep you covered, temporary insurance can bridge the gap in protection.
- Bothered about liability limits.If you’re disturbed about the minimum insurance may not cover the already-insured car in a liability claim, you may take out short-term insurance as supplemental coverage.
- Renting a car while out of town.You can buy the rental vehicle company’s insurance for the duration of using the vehicle or choose another provider.
- Avoiding rental vehicle insurance prices.If you intend to drive a rental car on and off for multiple occasions or for a few months, temporary coverage may be cheaper than rental company fees.
- Borrowing a friend or family member’s vehicle.You may be using their vehicle while your vehicle is getting fixed, or you’re briefly in between cars. If you’re a house guest and they’re loaning you their car, it would be wise to take out some kind of insurance. Do not assume somebody else’s policy covers the car you’re borrowing.
- Short-term ownership of the car.You still want insurance on your car, however short the period of ownership is. This could apply to an extended vacation or work-related trip, as well as a vehicle you buy only to resell.
- Your car will be in storage.To protect your vehicle against damages that may happen while in a storage facility, it may be smart to take out a short-term insurance policy.
- You’re selling the vehicle soon.Your old insurance policy may be up, and you are looking to sell the vehicle without losing coverage in the interim. You may also want it protected against test drivers.
- Instant coverage while driving a new car off the lot.You don’t want to take any chances — particularly with a new car that may have higher maintenance costs.
- Coming home from college for a break.While visiting, you may only need a car for a few weeks, but you want to ensure you’re covered.
- Moving-van rental coverage.Ensure your regular auto insurance agency covers rented moving vans — otherwise you should key into temporary insurance.
- Ride-share driver of a company car.If you do not have the vehicle you use for ride sharing, you still want it covered under an insurance policy.
3 Main Types of Temporary Car Insurance:
Short-term car insurance still offers the same coverage as long-term insurance policies that often automatically renew every 6-months to a year. It can be included to existing policies or take the place of standard coverage. Temporary insurance land in many forms, but the main 3 are:
- Non-Owners insurance.Non-owners insurance helps those who do not own their own car but occasionally find themselves driving other cars. Non-owners policies will provide liability for medical bills should an at-fault accident happen, as well as additional protection.
- Gap insurance.Gap stands for guaranteed asset protection, and it protects you when your regular insurance only covers the amount your vehicle is worth. vehicle value decreases greatly the older it becomes, and serious repairs can exceed the amount of the vehicle’s new worth. Should your vehicle be wrecked in an accident, gap insurance will take care of excess costs, and should be considered if you’ve put down less than 20% toward your car and financed it for 5 or more years.
- Rental vehicle insurance.Your regular insurance may only have limited coverage of a rental car, or you don’t own a vehicle and therefore don’t have auto insurance. Rental vehicle companies will offer insurance or additional coverage plans such as liability protection, loss-damage waiver, personal accident insurance, and personal effects. Rental agency prices can get high, so be sure to seek out third-party temporary insurance policies too.
Price and Qualifications for Short-Term Car Insurance
Similar to the regular insurance policies, the insurance company will take your place and vehicle make and model into account before quoting you a price. Companies will eqùally consider any notable marks on your driving record. Short-term insurance is often more expensive than long-term coverage, but it is only to cover the requirements for a limited amount of time.
Before setting your sights on an affordable price, ensure you meet these requirements to buy temporary insurance:
- You are over 21 years old.
- Your driver’s license has been valid for a min of 1 year.
- You have no more than 6 penalty points in the last 3 years.
- You have had no more than 1 at-fault accident in the past 3 years.