What is Short-term Car Insurance?
Short-term car insurance is an excellent option if you need coverage when your regular auto insurance policy is not active.
Let me explain,
For example, if you are taking a temporary job out of state and will not be driving your personal vehicle, this type of car insurance would be perfect.
Short-term policies can also be used when taking a road trip or business trip, leaving the country for an extended period of time, or having just bought a car and need to get some coverage while waiting for your new auto insurance policy to become active.
Many great benefits come with short-term car insurance policies:
Let’s have a closer look,
- No medical questions asked when applying, making it easier than obtaining long-term care through traditional health insurers.
- Quicker application process because there is no quoting involved to receive rates; the company already sets them. This means less hassle overall!
- You can compare insurance quotes from different insurance providers instead of having one set rate like permanent policies, giving consumers more control rights over their costs and options.
- You never have to worry about losing your driving privileges because the policy is only active for a short-term cover.
- One of the most appealing benefits of temporary car insurance policies is that they are designed mainly to cover injuries and damages such as theft, vandalism, or weather events; it can also provide coverage if you were in an accident even without an additional, comprehensive cover.
What Does Temporary Car Insurance Cover?
Temporary car insurance will cover against injuries and malicious damage such as theft, vandalism, or weather events; it can also provide coverage if you were in an accident even without a comprehensive cover.
When Would You Use Temporary Car Insurance?
Temporary car insurance is typically used when you need to drive a vehicle without insurance or if your current policy term has expired.
Temporary car insurance policies are also commonly purchased for new drivers who don’t yet qualify for the cheapest rates available on an annual basis but plan to take their driving test shortly.
Some people will purchase temporary auto insurance as a means of protecting themselves against low-cost liability requirements such as those imposed by some rental agencies and homeowners associations.
Temporary car insurance may also be necessary after someone’s driving licence has been suspended due to violations related to traffic citations.
How Much Does Temporary Car Insurance Cost?
The cost of a temporary auto insurance policy will depend on the type and coverage.
Some policies are inexpensive, while others may be prohibitively expensive, depending on factors such as your age, driving history, and the vehicle makes/model.
In general, more comprehensive plans with higher deductibles tend to have lower monthly insurance premiums than those without any options for lowering out-of-pocket expenses should an accident occur.
Can Anyone Get Temporary Car Insurance?
While temporary car insurance is typically available to drivers with a suspended license, this type of coverage may not be open to everyone.
- The applicant must have been licensed for the last five years.
- Applicants cannot have any convictions or suspensions on their driving record in the past three years.
One potential downside that should be considered before signing up for an auto insurance plan with a set expiration date is how much more it will cost when you renew your policy at the end of each 30 days of cover and how often these policies are renewable.
Some insurance companies only offer one renewal per year, while others permit customers to purchase monthly cover as long as they pay upfront.
What is the Downside of temporary Car Insurance?
Temporary auto insurance may be beneficial for people who need some extra protection while transitioning from their current insurance provider, but there are downsides too:
- Temporary car insurance premiums may not be competitive than other rates on traditional long-term care plans, which means more money out of pocket than usual.
- The vehicle must carry liability only, so this type cannot take care of any third-party damage or injuries that occur.
- The car owner must be the one driving the vehicle with a temporary auto insurance policy to maintain coverage in force.
To sum it up:
It’s often necessary to find temporary car insurance for one of several reasons. A temporary policy is typically short-term, but some people take out these as annual policies to save money.
The good: Unbelievably affordable rates and discounts!
The bad: You shouldn’t expect coverage like comprehensive/collision – only liability (which can still cover theft)
The ugly: You’ll need to be careful about your date of purchase and length-of-term when looking for the best temporary car insurance rates.