Do you need car insurance for a car that you will drive for a short period? Then you might have a few options. But it is not necessary to get separate temporary insurance coverage for your car.
What Is Temporary Car Insurance?
Short-term or temporary car insurance is a type of insurance that provides coverage to a car for a short period. Usually, insurance companies offer policies that have a minimum term of one year. Hence, they don’t deal with insurance for a short period, such as a few days.
Who Should Buy Temporary Car Insurance?
- People who rent a car for visiting a country on vacation.
- Those who are in-between cars.
- People using a ride-sharing service.
- Those people who borrow a car from their friends or relatives.
- People who will be driving rental cars on several occasions.
- Those who don’t own a car but want to avoid high rental company insurance fees.
What Should You Know Before You Buy Temporary Car Insurance?
Different car insurance policies provide various coverages that might confuse people. It is possible; you don’t need this kind of coverage depending on your circumstances. Before you buy a car insurance policy for a temporary period, talk to your previous car insurance company, home insurance company, or a certified insurance agent about your temporary insurance need. They might give you suggestions for your problem or let you know that you already have coverage. Ask them whether you can purchase insurance coverage for a shorter period, for instance, a 6-month policy.
Furthermore, ask your car owner if they have an insurance policy for the car you are using. If yes, you wouldn’t need to purchase any temporary car insurance coverage as their policy will cover you.
Another option for you is to purchase a non-owner liability policy, which is for situations such as temporary insurance situations. However, make sure you discuss the idea with your insurance agent. Also, non-owner liability policies do not cover the physical damage to the car. Before you decide to purchase, go through the checklist below to know what to expect when looking for temporary automobile insurance.
What Does Temporary Car Insurance Cover?
You will have different coverage options depending on the kind of temporary insurance. Ensure you inquire about the below-mentioned insurance coverages and understand each policy before deciding to buy any coverage.
- Comprehensive Coverage
- Liability insurance
- Collision coverage
- medical cost/bills
- Loss of Use
- Uninsured and underinsured motorists
How Much Does Temporary Car Insurance Cost?
Like standard car insurance, the cost of temporary car insurance depends on the type of car you want to insure—the purpose of using a car, personal insurance history, and the period of a temporary car insurance policy.
The cost of a temporary insurance policy also depends on where you will buy the insurance. For instance, temporary car insurance will be costlier if you purchase it through a car rental agency, but it will be cheaper if you purchase insurance through an insurance agency. Before you purchase any policy, it will be worth shopping around and compare coverages that various agencies provide.
Does Home Insurance Include Temporary Car Insurance?
Home insurance doesn’t provide coverage for temporary car insurance as home insurance liability eliminates automobile liabilities.
However, few additional liability policies might provide coverage for the protection of Uninsured/Underinsured (UM/UIM) Motorists.
Does Personal Car Insurance Provide Coverage to Temporary Car?
Usually, car insurance policies provide coverage to the car you rent, and if it does, you wouldn’t need a separate temporary car insurance policy.
The rental coverage provided is similar to the coverages you have on your car. For instance, if you pay $500 deductibles on comprehensive coverage, you will pay the same rental car. However, the rental car insured on your personal auto insurance policy does not apply to your company cars or cars rented for business. An insurance company offers different coverage for business cars which is separate from a personal car insurance policy.