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Temporary Insurance For New Car
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A standard car insurance policy is great for those who use their cars routinely, but temporary car insurance is a better fit for infrequent drivers. True term auto insurance policies are rare and may have gaps in their coverage, but there are other options for drivers looking for affordable, short-term auto insurance. Here’s a closer look at how temporary car insurance works and what alternatives are available.
Temporary car insurance is car insurance designed for short-term use cases. Although these policies do exist, they are quite rare and it is not possible to get car insurance for short term coverage with major insurers. But drivers who only need car insurance for a short time still have options.
It is usually not possible to buy a car insurance policy with a term shorter than six months. There are a few companies that offer monthly car insurance policies, but these are often smaller, lesser-known insurers. Their coverage and customer service aren’t always as good as larger companies, so it’s important to read the fine print and research the insurance company before purchasing one of these policies.
There are alternatives to temporary car insurance. Usually it is possible to find a better solution than buying a monthly policy from an unknown provider. Some of these solutions are described below.
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It doesn’t always make sense for students to pay for a year-long car insurance policy if they only drive a few months out of the year. Some choose to cancel their policies during the months they are away at school, while others reduce their coverage during that time to save money. Some companies also offer car insurance discounts aimed at students who attend school elsewhere.
Drivers usually have the option to purchase rental car coverage through the rental agency. But it’s important to read the fine print first to understand what is and isn’t covered. Drivers may also want to check with their credit card providers, especially if they have travel rewards credit cards, to see if any of these already include rental insurance.
Typically, a driver does not need to purchase their own insurance to borrow a friend’s car, unless they do so often or they are considered a high-risk driver. The owner’s insurance must cover the driver as long as the owner gave the driver permission to use their car.
Like college students, some military members choose to cancel their car insurance while deployed to save money. Others may look for insurance companies that offer discounts to active duty military members.
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Car sharing services often provide some basic car insurance, such as rental car coverage. This includes state minimum liability coverage and protection against physical damage to the vehicle. But this basic coverage may not be enough in all situations.
A permissive use clause is one of the basics of car insurance and comes standard on most policies. This applies to non-household members who rarely borrow a car. This means that as long as a driver has the permission of the owner of the car, they can borrow that car and drive it legally without their own insurance cover.
However, there are a few exceptions to this. Those who often borrow the car may need to be added to the policy as another named insured. Some companies require that all household members of legal driving age appear on the policy.
In addition, some permissive use clauses do not cover high-risk drivers. Those with DUIs or other felonies on their record may need to explore some other options. It’s always smart to double check the owner’s car insurance policy before borrowing a car to avoid any surprises.
Temporary Car Insurance: What It Is And How To Get It
When renting a car or using a car sharing service, a driver can benefit from the insurance provided by the rental company. But it’s still important to read the fine print before signing up. Not all policies provide the same coverage. While a bare-bones policy can be more affordable, it can leave a driver with a huge bill if they get into an accident.
Look at the coverage limits and fees as well as the premium costs and compare this to what is available with some of the other options on this list.
Some insurance companies offer usage-based policies that charge drivers based on how many miles they drive. These policies are usually only available in six-month increments. But they may end up being more affordable for those who rarely drive.
These policies are easier to get with larger insurers than monthly car insurance policies, with many large insurers offering some sort of program to reward same drivers.
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If a vehicle is not driven, some insurers may allow customers to reduce their coverage levels to comprehensive coverage. This protects the car against damage due to bad weather, theft and vandalism. But it does not include liability coverage or coverage for collisions with other vehicles.
A car storage policy can save a policyholder quite a bit of money compared to a standard car insurance policy. But the driver must remember to display full coverage before taking the car back on the road.
A non-owner car insurance policy is a standard car insurance policy available to those who do not own a car. It only provides liability coverage and does not include coverage for damage to the vehicle the policyholder is driving.
This can be a good addition to a rental car policy or when driving a friend’s car, but it may not provide enough coverage for those who own their own cars.
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It is difficult to find temporary car insurance in the United States. Drivers typically need to use one or more of the solutions above. Those purchasing a monthly auto insurance policy should review the policy terms carefully so they understand what is and is not covered.
Certain policies, such as non-owner auto insurance policies, only provide liability coverage and do not provide protection for the vehicle itself. Similarly, rental car policies may only provide a minimal amount of coverage. It is up to the driver to decide how much car insurance they need, but this policy may not always be enough.
Kailey Hagen has been writing about small business and finance for nearly 10 years, with her work appearing on USA Today, CNN Money, Fox Business and MSN Money. She specializes in personal and business bank accounts and software for small to medium sized businesses. She lives on what is almost a farm in northern Wisconsin with her husband and three dogs.
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The Ascent is a Motley Fool service that reviews and rates essential products for your everyday money matters. Temporary car insurance policies don’t really exist, but there are other ways to get short-term coverage. The best way to get coverage for a short period of time is to buy a six-month policy, a non-owner policy, or a pay-per-mile policy and then cancel it when you no longer need the coverage.
No reputable car insurance company offers a policy shorter than six months, so if you find an offer online for “one-day” or “weekend” car insurance, it’s probably not legitimate.
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You need a standard car insurance policy if you own the car you drive, even if you don’t plan to drive it for the full policy period of 6 to 12 months. You can cancel the policy if you no longer need coverage, although you may have to pay a cancellation fee.
Standard car insurance policies are also the best choice if you are a college student and your car is at home. In fact, many insurers offer discounts for distance learners, or you can lower your coverage limits for a while.
Non-owner insurance covers people who do not own a