All You Need to Know About Temporary Car Insurance Coverage

What Is Temporary Car Insurance?

Temporary car insurance provides all the coverages as standard insurance, only for a shorter duration. This auto policy is not offered by most insurance companies, so it can be difficult to find. This is because providers stand to gain more from standard policies versus short-term ones. Even if you see a few providers that offer this package, they usually will not allow you to buy less than one month of coverage.

If you are considering getting temporary auto insurance, keep in mind that it might be a bit more challenging than obtaining a standard policy and will cost more. Temporary car insurance will cost you about $15 a day. This is a $5 addition to the standard coverage, which averages $10 per day. Although there are a few reasons you might need temporary coverage, a traditional policy can save you lots of money because it is lower in cost.

Who Might Need or Consider Temporary Car Insurance?

Let’s take a look at some of the reasons you might be looking for a short-term auto insurance policy.

  1. Coverage While Shopping for a Standard Policy

    You can buy temporary car insurance if you are preparing to purchase a standard auto insurance policy and want to have more time to shop around or check out a particular company. During this period, you can learn one or two things, including how to lower your rates. A short-term auto policy will give you enough time to shop the market, compare quotes, and select a provider.

  2. Borrowed Vehicle

    If you borrow a friend’s car only for a few days, you may decide to purchase a temporary insurance policy. In this case, you can’t opt for a traditional policy because it is only for a short time. You will need non-owner’s insurance to cover a car that’s not yours. A policy for non-owners will put your mind at rest that it is protected should an accident occur.

  3. Rented Car

    You will be required to purchase a short -term or rental insurance if you are renting a car that doesn’t have a standard car coverage policy.

  4. Test Driving a New Car

    It is always best to have insurance in place before you finalize the purchase of any vehicle. However, if you just purchased a vehicle and have not chosen a standard policy, you may choose temporary car insurance just to keep you covered until you purchase a standard policy.

  5. Visiting a Foreign Country

    If you are a visitor or tourist in the U.S. or any other country, your existing auto insurance may not cover your driving in another country. Hence, you can buy a temporary plan to cover the duration of your trip. Some countries also require different coverages from your resident country, so this allows you to have the coverage that the new country requires.

How Do You Get Temporary Car Insurance?

There is no special way to get temporary car insurance outside the regular way of getting your traditional auto policy. Shopping for short-term car insurance is the same as regular auto insurance.

Here is a summary of the steps you have to follow:

  • You have to know the type of coverages you want
  • Take time to shop around to compare quotes before picking the deal that best suits you.
  • Check the market for different quotes. This may take time, so it is important to give yourself enough time to make an informed decision. An agent or broker can help with this process.

Summary

Many traditional car coverage providers do not offer short-term policies. It can take some time before you settle on the best deal. A short-term auto policy is more expensive than a traditional one, with an average of $15 daily, while regular or standard coverage is around $10 per day. If you intend to drive throughout the year, a standard policy should be your go-to because it saves you money.

Most auto policy providers that offer temporary coverage will not allow you to buy less than one month of coverage because it may amount to a loss for them.

Do you have any additional questions about your car insurance? Contact the experts at First Insurance Solutions today. We are always eager to assist you with all your coverage needs.

By First Insurance Solutions

First established in 2003, the experienced insurance consultants at First Insurance Solutions provide unmatched insurance solutions to increase indemnity against personal and business risks. We aim to provide businesses and individuals with quality, reliable insurance policies that meet their needs and budget.