When it comes to car insurance, most individuals will carry regular vehicle insurance with them. This is often done through an automobile insurance company, is provided to the owner on a multi-year contract, and is valid only while the individual is paying the premium. However, there are several situations and circumstances that will cause an individual to purchase short-term auto insurance in lieu of regular insurance.
What Is Short-term Auto Insurance and What Does It Cover?
Short-term auto insurance is exactly that, insurance for your vehicle that covers a short time period. This time period can be anywhere from a few days up to a few months, with some insurance providers even offering six month to one-year contracts. Unfortunately, because most individuals have regular insurance, a temporary insurance contract can be a lot more expensive in its premiums due to the fact that they are not a regularly occurring item of sale.
When you go to purchase a temporary insurance policy, make sure to ask about what is covered. You may be eligible to receive collision coverage, towing, loss of use, uninsured drivers, comprehensive coverage, and liability. Now not every policy will cover all of these, but some policies may offer more options than others.
In What Situations Would You Buy a Short-term Insurance Policy?
Here are some situations or circumstances that may require a short-term auto insurance policy:
- You are on vacation in another country and need a vehicle for your visit,
- Regularly use a ride-sharing service and need insurance for when you are driving,
- Planning on renting a vehicle that you do not own, either for a short period of time or on and off for a few months,
- Choosing to borrow a vehicle from a family member or friend for an extended period of time,
- Plan on buying a vehicle and reselling it after a short period of time.
If you would like to read about these circumstances a little more, check out American Insurance’s article on why temporary insurance is so great.
Now if you do fit into any of the above categories, don’t go rushing off to buy a short-term contract right away. Instead, contact your current insurance provider and find out if you already have supplemental coverage; if you don’t own regular insurance than see if the vehicle you will be using already has an insurance policy that will cover you. For example, a friend’s insurance coverage may already cover uninsured drivers and that ride-sharing program might offer included insurance. However, if this is not the case, then make sure to shop around as short-term auto insurance can vary greatly in price depending on where you get it and what type of vehicle you are insuring.