If you are moving out of state or want to switch car insurance providers, you will need to make sure you have adequate insurance coverage during your transition. Temporary car insurance is designed to provide coverage for you and other drivers for the short-term. This type of insurance provides very basic coverage in the event you are involved in an accident, and can protect you from a costly lawsuit or a heavy fine. There are several reasons to purchase temporary car insurance instead of regular car insurance.
Use these tips when buying short term coverage from your car insurance provider:
1. Review all details of coverage terms. Every car insurance provider has different terms and conditions when it comes to short term or temporary car insurance coverage. Make sure you are aware of the coverage period, and what portion of the costs you would be responsible for paying in the event of an accident.
2. Purchase temporary car insurance when you are renting a car. If you are traveling across the country with a rental car or planning to rent a car for an extended period of time, you may benefit from having short term car insurance. This type of insurance will protect you from collision damage and costly repairs if you are involved in an accident, and some types of insurance plans will also cover medical costs.
3. Buy short term car insurance when you are driving someone else’s vehicle. Not all car owners carry coverage that protects the vehicle when someone else is driving it. If you plan to borrow a friend or family member’s car for an extended period of time, purchase short term car insurance so that you have basic liability protection and in some cases, collision coverage on the vehicle.
4. Ask about temporary car insurance when buying a vehicle from the showroom. Many car dealerships offer temporary car insurance coverage to buyers who want to take the vehicle home straight from the showroom floor. In many cases, you may have a lapse in coverage when you are changing the ownership of your vehicle. You’ll need short term car insurance to cover you as you drive your new car from the dealership to your next destination.
5. Consider the long-term costs. Even when you’re buying short term car insurance for just a few months, you may end up paying much more than you would if you purchased an annual car insurance policy. If you have the time, consider purchasing an annual policy as soon as possible and you will save on costs. Remember that temporary car insurance is designed more for convenience than practical reasons, and will cost more than most types of regular car insurance policies.