It seems today there is some form of insurance for just about any situation you could possibly think of. Most of these insurance coverages are completely optional, but one that usually isn’t, is auto insurance. In most states it is required by law in some form or another, and I don’t think I have to tell you….it’s expensive.
The Policy Differences
Depending on your driving record and age, it can be more expensive than your monthly car payment. Having worked in the auto insurance industry, I can tell you I have seen insurance policies with monthly payments higher than my mortgage! Needless to say, if there is a way you can save even the smallest amount on auto insurance, most of us would jump at the opportunity. One way you can avoid entering into costly and lengthy coverage contracts, when it simply isn’t necessary, is taking advantage of what’s called Temporary Auto Insurance. There are many situations where this type of auto insurance comes in handy.
When To Use It
- Borrowing A Car From A Friend or Family Member
- Just Bought A Car, No Insurance Yet
- A Collector Car Only Driven Once In A While
If you are going to be using a friend or family member’s vehicle for a significant period of time, this is a great example of a situation where temporary auto insurance would apply. With most auto insurance plans, unless it is an immediate family member, most people will not be covered on the other person’s insurance policy. In order to be compliant with most state laws, the driver of the vehicle must be insured. If you utilize a temporary car insurance plan, you will be in full compliance of the law, as well as being covered in the event of an accident.
Often times when we purchase a new vehicle, the last thing on our mind is getting insurance on the vehicle. The entire process is often so stressful, this simple fact is overlooked. You never want to rush into any insurance coverage agreement, so while you’re looking for your next provider, you can get temporary auto insurance in the meantime. Most car dealers won’t even let you drive the new vehicle off the lot without having it insured, so sometimes this may be the only option.
A lot of people have high quality collector cars that they may only drive for a few weeks in the summer. Insurance policies on these vehicles are very expensive, so if you only drive it for a few weeks, it doesn’t make sense to insure it all year. This is another situation where temporary auto insurance coverage would be an excellent idea.
Basically any time where you need car insurance for a few days or a few weeks, temporary car insurance can help. It should be known that the premiums for temporary auto insurance are going to be higher than the normal 6-12 month terms you are used to. This is simply because the risk is higher for the insurance company, because if something does happen, you will not be paying premiums for a significant period of time. This results in a much larger financial loss for the insurance company, than if you were paying a 6 or 12 month premium.
Temporary auto insurance is not available in all states, and you should check with your local insurance providers to find out if it is a service that they offer. This type of coverage can also be added to your current insurance plan, so that is something you may want to consider as well.
