When you think about car insurance, most people will automatically assume that policies are annual or perhaps for six months at the minimum. However, there is such a thing as temporary car insurance and in certain circumstances, it may meet your insurance needs.
Temporary Car Insurance? What Is It?
Temporary car insurance is exactly as it sounds, short-term. This means that an insurer will offer you coverage for a specific limited period of time. You may need coverage for a single day, 14-day insurance, 1 month car insurance, or more. So, rather than pay for an entire year or six months, you can tailor your auto insurance to your specific needs.
Policies can provide you with full coverage or you can work with the insurer to get a policy that fits your specific set of circumstances.
What Does Temporary Car Insurance Do?
Imagine you have an emergency and need to travel to another state and will be driving someone else’s vehicle. The vehicle’s owner may not be able to adjust his or her policy to include you due to an impediment. A temporary insurance policy will allow you to get the coverage you need for the brief time you’ll be using the car.
What Does Temporary Insurance Cover?
A temporary insurance policy will generally offer full coverage however some will also offer extra features. Things to look for in a short-term policy include:
- Standard Full Coverage includes damage, fire damage, medical expenses, repairs, theft as well as liability for damage to other people and their property.
- On-Demand Coverage, meaning that you can establish the dates of the brief period you need to be covered whether immediately or in the future.
- Length Flexibility. In many temporary insurance policies, you can insure for a single day or for as long as three months. This option should save you money when compared to an annual policy.
- And it poses no risk to the vehicle owner’s or your no-claims bonus.
What Doesn’t Temporary Car Insurance Cover?
Despite full coverage being standard on most temporary car insurance policies, there are bound to be exclusions. When stipulating your temporary insurance, verify that these options are excluded. Evaluate whether you need these options or not and ask if they are available at an extra cost with temporary insurance.
- Additional Drivers
Other drivers will not enjoy coverage on a temporary policy unless they have been specifically added to the policy as additional drivers.
- Impound Release
If the car has been impounded, this won’t be covered.
- More than One Vehicle
Temporary car insurance will be for a specific vehicle, so you will not be able to use it when driving other cars. In the event that you may need to drive more than one car, you should inquire about multi-car coverage.
- Security Carelessness
If you don’t close windows, lock doors, and hide your valuables, you won’t be covered.
- Vehicle Use
If your temporary insurance policy excludes using the vehicle for certain purposes and you do, you will not have coverage.
When Might I Need Temporary Car Insurance?
There are several situations where a temporary car insurance policy may be just what you need.
- A Car Borrow
If you borrow a car for a brief period and don’t want to burden the owner with adding you to their policy, temporary insurance is ideal. This is particularly relevant if you are a university student who will be borrowing a car during the holidays or summer or if you borrow a friend’s van to move your household items.
2. Car Purchase
If you purchase a car but need time to select a long-term policy, you can get temporary car insurance to provide you with a window of time to make your decision.
- Driving Practice
If you need to practice before taking your driver’s license, short-term insurance will allow you the possibility to develop your skills.
- Emergency Driving
In the event of an emergency where a friend or family member is not able to drive, you can stipulate a temporary policy for the length of time necessary to assist.
- Occasional Driving
If you own a car that you use rarely but may like to drive occasionally or during a specific period like the summer, a temporary policy will avoid having to purchase full-year insurance. This is a great option for folks who love road trips.
- Professional Use
Should the need arise to use your personal vehicle for business or work purposes for a short period, a short-term temporary business policy is optimal. It will also save you or your employer money.
- Sharing Driving
If you need to share driving responsibilities with another person for a brief period, a temporary plan is ideal.
Is It Difficult to Get Temporary Car Insurance?
Requirements vary from company to company, but like when buying any type of insurance, your age, driving record, and the value of the vehicle will all play a role. Often providers will not insure young inexperienced drivers or vehicles that exceed a specific monetary value on a temporary policy.
Temporary Insurance Costs
When calculating the cost of a temporary policy, the insurance provider will also figure in several factors other than age and car value including:
- Where you reside and will be driving the vehicle
- Your driving history
- How much you drive in terms of time and mileage
- What your profession is
- The vehicle model and year that you are insuring
- How long you need the insurance for
Temporary Car Insurance Can Be Useful.
If you already own car insurance know that you will not necessarily automatically be covered to drive other vehicles. And if by chance you are, the coverage may be limited. Temporary car insurance can afford you more serenity for those unexpected, limited, and yes, temporary driving situations that arise.
