For the majority of car owners, there comes a time when general automobile insurance simply does not meet their needs. As important and necessary it is to have full coverage in most situations, the fact of the matter is that there are circumstances that warrant a more temporary solution. Many of us have faced the difficult decision of whether to pay the full insurance costs or to simply take the risk of not insuring a vehicle for a period of time.
Rather than fret about making this kind of decision, a number of auto insurance companies have introduced an alternative insurance product to the market. This type of temporary insurance coverage is referred to as short term car insurance.
Temporary automobile insurance was created to fill the gap in situations that do not quite warrant a full policy to cover a vehicle. One of the most common of these types of circumstances happens while on vacation. If you do not have a current insurance policy that covers rentals while on vacation, the temporary auto insurance policy may be the perfect fit.
A rental vehicle is one of the last places that you don’t want proper coverage. On vacation you are often driving on unfamiliar terrain in an unfamiliar vehicle. This typically won’t add up to the highest probabilities of safety. Rather than take the personal liability for both the rental vehicle and the other driver’s car in an accident, you can safely insure yourself for the duration of your vacation.
Temporary coverage is exactly as it sounds, temporary. You can cover your liability for whatever duration you need, and not go through the hassle of trying to increase your current policy or apply for a new policy.
Another circumstance in which temporary car insurance is very helpful is during the new car buying process. During this period you may find yourself searching for the best auto insurance policy that you can. Rather than waiting until you find the right policy to purchase your car, you can make the decision on your own time.
Temporary auto insurance allows you to cover your new vehicle while you are searching for a more permanent policy. Because you have proof of insurance, you will be able to register your vehicle with the state and also legally drive the vehicle on the road. And let’s face it, if you just purchased a new vehicle, you are going to drive it.
By: Edward T. Richards
Posts Tagged ‘Short Term Car Insurance’
Short Term Car Insurance Solves Temporary Coverage Needs
December 27th, 2009Short Term Car Insurance Tips
December 26th, 2009
If you are thinking about short term car insurance, there’s a very good chance that you may not even need it. If you are renting your car, the rental company will offer you the following services, each of which you probably already have:
-Liability coverage: If you already own a car you have liability insurance, which transfers over to your car.
-Loss Damage Waiver: If you already have both collision and comprehensive coverage on your own car, you do not need this type of coverage.
-Personal effects coverage: If you have homeowners insurance, it will cover loss to property not just in your house, but in other cars as well. However, if the personal belonging you want to insure is very expensive, you have to fill out a separate floater to cover its value.
-Personal accident insurance: If you have your own health insurance, Personal Injury Protection, or Medical Payments Coverage, you do not need this rental company’s extra charge.
To be 100% sure that you are covered it’s a good idea to check your car insurance policy and to call them if you are not sure about anything. Your credit card company may also pay for your insured car, assuming you use this credit card to pay for the rental. Although this may all sound complicated you’ll end up saving boat loads of money off of rental place who just want to make some money off of you.
What happens if you borrow a car? If you own one yourself your car’s policy will carry over to the borrowed car. If you borrow a car and have no car insurance by yourself you’re going to want to purchase a non-owners auto insurance policy.
By: Nickolay Lamm
How Does Short-Term Car Insurance Work?
December 25th, 2009
If you’re shopping around for car insurance there are dozens of companies willing to offer you policies for 12 months or more. However, what if you only need a policy for a month, a week, or even just a few days?
There are many circumstances in which short-term car insurance may be a better solution than a long term policy. For example, what if you are hiring a car or borrowing a friend’s vehicle? How about if you are allowing a temporary driver such as an overseas visitor to use your motor vehicle? What if you are lending a car to a friend or relative or you have just bought a new car and need to be insured as soon as you drive it away from the dealership?
Thankfully several car insurance providers now offer short-term car insurance. The theory behind it is simple. If you need to add a friend or relative to your policy for a temporary period, there is no risk to your own no-claims bonus. Or you could set up a policy even if you just need to drive someone else’s car for as little as one day.
With a short-term policy there is less risk for the regular policyholder, instant cover is available and the procedure is generally a lot quicker than adding a named driver to a policy.
So what should you look out for when buying a short-term car insurance policy?
Well, most policies are available for 1-28 days, but you should check the length of the term available. Also make sure you can take out another policy at the end of the period should it be necessary.
If you want cheap short-term car insurance than it’s vital to have a good driving record – avoid accidents and convictions, and if you are hiring a car pick something conventional with a small engine.
By: Alex Gregory