Personal Finance

Short term car insurance is a policy that will normally cover a specific vehicle for a short period of time, normally less than 6 months. If the policy is for more than 6 months, it will typically fall into a long term car insurance category and be subject to other underwriting guidelines. This is a policy that may include a few pros and cons, but in most places car insurance is required, so using this short term policy may cost you less in the end.

If you have access to a vehicle for only a short period of time, whether this is specific to moving a vehicle from one part of the country to another, or whether you have an extended use of a vehicle you might normally not have, the short term car insurance could make sure you are covered in the event of an accident.

In most countries of the world with drivers, there is a policy of driving with insurance. This is more true in North America and Europe, but really includes most nations that do have regulatory policies associated with vehicles. In the United States, most of the individual states have specific car insurance requirements that if your vehicle is not insured, you’ll also be cited and fined should you be pulled over. In some instances, you’ll be left without a vehicle as you can’t legally drive without insurance, so if you’re pulled over, you may have to call someone for a ride or work out a situation with public transportation.

The duration can extend from 1 day to 6 months. Cancellation of the policy is usually done in writing if you need to end this prematurely for whatever reason. There are some instances when you may only need a policy for a couple of days or a few weeks period of time. Insurances will usually work with you on your specific situation.

There are two main types of coverage. One is the full coverage, the other is liability only. What this means is that if you are the one that causes the accident, your insurance is liable for the damage to the other vehicle and the individuals in the vehicle. This is the liability only. This also means that if you are in an accident and it is caused by you, your vehicle won’t be covered. This is a great policy for saving some money if you are confident in your driving abilities and the conditions under which you’ll be operating. If you are a good driver, this may be a solid way to go. The other option is more of a full coverage which does include both vehicles if you cause the accident and your vehicle if the other driver is underinsured or uninsured.

The short term policies are usually not available through the more traditional insurance companies. And if they are, it is usually through a broker agent vs. directly through to the company. This varies, however, with companies as some have a significant inside sales department to handle this type of volume. Check with your existing agent if you have one on this topic.

Getting insurance for a short period of time is relatively easy to do, but does require paperwork or online application and then an agent that can work with you for this purpose. The better driving record you have as the primary name on the application, the better it will be for you by way of expense. If you have a poor driving record, your premiums will normally increase and the overall cost of insurance will increase accordingly.

Although having car insurance may represent an additional expense, the greater risk is not having sufficient insurance for what you’ll attempt. There are too many unknown factors that when presented will cost you a lot more and leave you legally liable as well for damage caused in the event you are not insured.

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