Short Term Auto Insurance
What is Short Term Auto Insurance ?
Traditional auto insurance policies are typically issued in six month spans. For most people, especially those that pay on a month to month basis, this is a very good thing as the price of the insurance is guaranteed to stay the same for at least half a year. There are many expenses, such as food, gas, and utility bills, that are extremely inconsistent, so it makes sense that most people would want some sort of consistency from what is likely to be one of their larger monthly payments.
What happens, though, when someone needs an insurance policy for less than six months? If there is no cancellation fee involved, they could always get a six month policy, pay for the first month, then cancel the policy. Although this might sometimes work, it still does not allow for even shorter periods of time, such as weeks, or even days. Doing this repeatedly can also cause an insurance provider to deny you coverage in the future, so unless you plan to keep it for six months, a shorter term policy is really ideal.
Short term auto insurance policies can span for as little as hours and as long as months, depending on what is needed by the driver. They are usually a little more expensive than traditional auto insurance policies on a per day basis, but avoid the additional cost of the rest of the month, or six months, if the insurance will not be needed for that long.
There are many situations in which short term insurance can be a much better idea than a full six month policy. For example, when renting a car, the car will need to be insured for the duration of the rental. Although most car rental companies do offer an in house insurance solution, they are often a lot more expensive than a third party short term insurance policy. This usually is only necessary, however, if the driver has no insurance at all, as most policies will cover the use of a rental car. Test driving personally owned used vehicles will also generally necessitate the use of a short term insurance policy.
If the owner of the vehicle in question has insurance on it, then short term insurance may not be necessary, but as it is up to the driver to make sure he is insured, it is often simpler to just have a short term policy that covers the driver.
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- Auto Insurance Guide
Tags: Short Term Auto Insurance, short term auto insurance policies
