If you drive a car on a regular basis, you probably have car insurance for yourself and your vehicle. You have a certain amount of coverage with a set deductible and you pay a monthly or annual premium. Would this be considered long term insurance, and if so, how does it differ from short term car insurance?

Long term insurance policies usually last a year. Most people renew their policy every year unless they are unhappy with their company or want a better rate. In that case, they will look elsewhere for a new company with a better rate. This is the standard insurance policy you are probably most familiar with.

Short term car insurance usually lasts for 6 months. It is has as long as the average insurance policy. When is this type of insurance most often used? There are several different reasons why you would only need it for the short term. Basically, it is used when you won’t be driving a car for very long, at least not a whole year.

When you rent a car you aren’t going to want to get a long term policy because, obviously, you won’t have the car for very long. If you were going to have it for a long time, you would have been better off buying the car. A foreigner who came to the U.S. for a limited amount of time will need short term, and basically whenever you will be driving a car for a short amount of time.

Short term car insurance is not much different from long term as far as what kind of coverage you can get. You can get comprehensive, collision, liability, etc. You want to be covered just the same. You will also need to set a deductible. A higher deductible means lower premiums, but make sure you can afford the deductible.

By: Joanna B.