Understanding How Short Term Insurance Works

  • This article explains when you may need to buy a temporary auto insurance policy and describes how the whole process works.

    The typical insurance covers are usually based per annum and the end of which you will have to renew the policy or switch to another car insurance provider to minimize your costs as much as possible. But what happens when you don’t want a cover for a whole year? In certain circumstances, you may want to drive another person’s car or borrow one on a one-off basis, but you are not covered automatically. This is when you need to consider temporary auto insurance.

    Getting temporary insurance

    The first step is to compare different insurance policies. If you want to drive your friend’s car, you can request to be included in that person’s insurance policy as one of the drivers, but this is not a cheaper option. Suppose you want to make a claim, the policyholder will not get any insurance claim, and this will make it hard for them to get a cheap insurance policy in the future.

    Another great approach is to consider “driving other cars” if it is stipulated on your insurance coverage. This feature used to be common in the past, but it is not the case now. Only a handful of insurance providers offer this form of insurance. Furthermore, it is designed for third party cover, so expect to get nothing in the car if your car crashes. Study your policy keenly to see if the cover is in the insurance policy.

    Why you should consider temporary auto insurance

    Temporary auto insurance provider short-term cover that may range between one and 28 days. However, some covers go up to 3 months. This means they are ideal for short-term activities such as borrowing a car to use for a few days. It is an affordable alternative if someone is willing to lend you their car. Also, the insurance can be ideal if your car is in a garage and you want to borrow another one from a friend or family.

    You can use the auto insurance coverage to transport your new car home. Many vehicle dealerships include this type of insurance. But don’t forget to purchase your insurance policy, especially if you are using your car privately. Some insurance providers off this policy to vans. So if you borrow a van for transportation purposes, then you should consider taking the temporary auto insurance.

    So, if you decide to hire a van or car, then it is less likely you will need a separate temporary auto insurance policy because the cover charges are included in the hire price. But, many hire firms only have a third-party policy as standard, so you may also want to consider the short-term cover. Short-term insurance cover is a comprehensive policy. So, suppose an accident occurs, the insurer will cater for the damage caused to your car as well as other cars involved in the crash.