There are several situations in which it makes sense to purchase short term car insurance. Many, including those who live in cities with good transportation systems, do not have a need for permanent cars. Therefore they do not have personal auto insurance. A short term policy is usually for less than 30 days and can be set up quickly.
If you decide to borrow a friend’s car you may want short term temporary insurance. This means that if you are involved in an accident you don’t have to make a claim on your friend’s insurance policy. Also, if their car is damaged you will be certain to have the right cover to have the repairs made. This also means that any claim you make would not reflect on their claims history.
When renting a car you have the choice of using your own auto insurance policy, if it covers rentals. You can also purchase insurance from the auto rental agency. The insurance you purchase from a car rental agency can be expensive and it may not have all of the coverage that you would like. A solution to this dilemma is to buy temporary insurance.
A car that is in storage might have a storage-only policy to simply protect it from theft or damage in storage. If you plan to use a car that has this limited policy then you may want to purchase temporary insurance for the period when you will be actually driving the car.
If you buy a car that you intend to resell right away then a temporary insurance policy will be sure that you are covered while you are trying to sell the car. When you buy a new car you should secure your insurance before driving away. You may opt for a temporary policy so that you have time to find the right long term policy to fit your needs. If you have current car insurance this might already be covered on your policy. But you should check your current policy to see if you are covered.
Short term, or temporary, auto insurance generally has the same provisions as regular auto insurance. You can purchase a liability-only policy but most short term policies include comprehensive coverage. Some short term policies give you the option of including coverage for medical expenses.
Temporary insurance may come with restrictions and you should certainly read the fine print, including exclusions and limitations, to be sure that you are getting the coverage that you need. You can check out a company’s reputation by looking at their rating which can give you an idea of the strength of the insurer and their history of timely claim payments.
Most drivers must be over 21 to be eligible for temporary auto insurance. There are policies for drivers under 21 years of age but they are more difficult to locate and will undoubtedly more expensive. Getting quotes from several insurers is a good way to be sure you are getting the best rate on a short term policy.