The Facts About Short-Term Car Insurance

Short term car insurance is an excellent way to protect yourself without procuring a long-term commitment. Short-term coverage is applicable for those wishing to cover a vehicle for up to six months. Most people will make use of this type of policy when renting a car during travel, however there are several other uses for short-term insurance. Adding any additional drivers to an insurance policy will often result in higher monthly payments and an increase in risk, especially if the driver is newly licensed. Short-term insurance, on the other hand, allows for additional drivers at a flat fee. Parents whose children will be using their car during school breaks, for example, may find this type of coverage useful. There is no limit on how many drivers can be added to a short-term coverage policy and claims filed under short-term insurance will not affect your long-term policy. A car does not necessarily have to be used to require coverage, cars that are stored for up to six months can also be covered for damages by short-term insurance. Short-term insurance can also be helpful in the interim of switching from one insurance to another.

The cost of temporary car insurance is significantly higher than a standard annual policy. Short-term coverage will include liability insurance such as injury or property damage, physical damage to the car, and coverage for an uninsured driver. For additional cost, some short-term options will also include medical coverage for passengers. Usually the amount of coverage is unlimited. Although the coverage can extend to up to six months, most companies will offer policies in segments of either 2 or 4 weeks and must then be renewed. Canceling this type of policy is as easy as a written request or a phone call.
Fees for this type of insurance are often decided based on the history of the car as well as personal information. There are numerous quote calculators available online that will provide an estimate of the cost after a short questionnaire is completed. The make, year, and mileage of the car is always required. Additionally questions about where the car is parked overnight, whether it is leased or owned, and whether it is protected by security systems will also be helpful in determining insurance costs. Personal information, such as employment, residence, and household income are used as indicators of what a premium should be.

Although prices can vary significantly depending on all of the above factors, it is common that short-term insurance prices will be much lower in the suburbs than in a larger city. For example renter’s insurance in Manhattan would cost about $10 a day, whereas in Brooklyn or Queens it would be $7 or $8. Since there are so many providers, it’s important to shop around to make sure you are getting the best price available. For car rentals in particular it is important to make sure you are aware of what kind of coverage you’re purchasing; if renting from a discounted site such as Hotwire, the insurance you’re paying for is travel not car insurance and therefore not the best option.

Short-term insurance for your car is easy to get and fast. Because it is more expensive than standard coverage on a daily basis, it makes sense to calculate whether it’s worth it for a particular situation. A temporary driver, or a parent with new drivers in the family can usually avoid heavy penalties with this type of insurance, but it is not designed to substitute for a standard policy. Many well-known insurance companies such as Geico, Progressive, and State Farm offer temporary insurance.

 

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