If you are interested in a short term car insurance policy or cover you are either going to be renting a car or borrowing one from someone. I explain the different scenarios and why you may not need car insurance for each one…
Renting a car: You are likely to be offered liability coverage, a loss damage waiver, personal effects coverage, and/or personal accident insurance. If you have already have car and health insurance you probably don’t need any of the rental car company’s insurance policies. Furthermore, if you use a credit card to pay for the rental car, the credit card company may pay for the cost to insure the rental car. To be on the safe side it is in your best interest to call your car insurance and/or your credit card company to make sure that you are covered. Because a rental car company’s insurance fees are expensive, it is worth your time making sure that you don’t need any of their inflated coverage.
Borrowing a car: If you own a car and have the respective car insurance you needn’t worry as the coverage on your car transfers over to the owner’s vehicle. If, however, you don’t own a car you’re going to need a nonowners policy to protect yourself against liability claims if you are found guilty an accident. If you damage that person’s car and only have a nonowners policy you better hope that that person has collision and/or comprehensive coverage to help pay for the costs to repair his or her car.
By: Nickolay Lamm
Posts Tagged ‘Short Term Car Insurance’
Short Term Car Insurance Policy
December 25th, 2009What is Short Term Car Insurance?
December 23rd, 2009
There are times when you simply don’t need a six month insurance policy, but you need some sort of short term car insurance. Luckily, there are companies out there that do provide such a service. This is great for people who only use cars every once in a while. Not only will it cover the cost of the repair of the car if something were to happen, but it also prevents the driver from receiving a heavy fine for driving uninsured. It is, after all, illegal to drive without car insurance, and for good reason. Things happen, people want their cars fixed, and the last thing you want is to go to court because of a simple mistake.
Short term car insurance can last anywhere from a day to six months, depending on how long you’re going to require it. This is much more economical than paying for a full six months of insurance on a car that you’re only going to use for a week. Depending on the company providing the service and the policy they issue, the premium may be collected monthly or in advance. Coverage can begin immediately upon receiving the policy, or on an established, agreed upon date, depending on exactly what the needs of the driver are. Just like a normal, long term, full coverage auto insurance policy, short term car insurance includes uninsured and under-insured motorist protection, physical damage, and of course the obligatory liability insurance that is required by law. Some policies even cover medical payments for passengers. Auto insurance companies generally charge a flat rate for short term car insurance, and this rate is often less expensive than normal car insurance. Extras such as roadside assistance may also be available, depending on the company and policy. There are no contracts, and the only thing needed to cancel the policy is generally a written request.
By: Luke Duncan