For most people, a semi-annual or annual car insurance premium is cost effective and makes sense. There are times, however, when a long term insurance policy isn't the best option. Whenever a car will be used for a short period of time, such as when renting or borrowing a car, temporary car insurance can provide the necessary protection from liability for less money than a normal policy. It also has some distinct advantages.
Temporary car insurance provides the same liability protection that a normal insurance policy would, but for a much shorter length of time. A temporary policy can provide coverage anywhere from one day up to a maximum of 28 days. In the event of an accident, the cost of repairing damage and any liability incurred will be covered by the policy.
There are several reasons to consider using temporary car insurance, especially when borrowing another person's car. Accidents happen all the time, even on the shortest of trips. While a policy owner has the ability to add another driver to an existing policy, doing so could put any safe driver bonuses at risk, should the person borrowing the car have an accident.
An accident could also lead to higher annual premiums or a loss of coverage. A temporary policy is cost effective and will provide liability protection without the vehicle owner risking premium increases or a loss of incentives.
A temporary car insurance policy also makes sense when traveling. Short term insurance can provide peace of mind when renting a car, and cover liability expenses or repair costs in the event of an accident. Multiple drivers may be added to short term policies, just as with a normal policy, so anyone going on the trip can be listed as an additional driver.
When choosing temporary car insurance, it's important to note that most companies won't accept instalment payments for short term coverage. It will be necessary to pay the premium in full at the time it is taken out. This should be taken into consideration when comparing policy prices.
The cost of a temporary policy will be determined by many factors. Just as with a normal policy, the driving record of the individual, any claims filed, and the type of vehicle will impact the cost. The more expensive the vehicle is to replace, the higher the premium will be. A premium may also be higher for drivers that have had previous insurance claims or driving citations.
As with any auto insurance policy, it's always best to get several quotes and compare policies. Price should only be one consideration when choosing a policy; other factors such as policy limits and types of coverage should be understood as well.
