What is Temporary Car Insurance Good For? || Everybody knows that having insurance on a car is a necessary expense that cannot be foregone, especially given how costly getting into an accident can be for anyone without a policy. The most familiar kind of car insurance would be the yearly plan, which, as one might expect, spans a full 12 months and is then renewed. However, a variety of temporary car insurance policies exist, each one catering to different needs where the long-term coverage of a standard policy is wasted. Let's look at a few examples.
Driving a new car home
What do you do if you have yet to decide upon the type of policy you might need by the time you pick up your newly-purchased ride from the dealership? It may indeed be a one-in-a-million chance that you get unlucky and the new car gets totaled on the way home, but given the costs involved, are you really willing to take the risk of landing in financial distress just because it wasn't your day? Or depending on where you live, is it literally against the law for you to take the new car out from the dealership if you have yet to purchase coverage on it?
No problem; you can purchase a temporary car insurance on your new car, which would give you more than sufficient time to drive home where you can continue to consider your options further. If need be, you can even insure the new car for as long as it takes to decide upon a long-term plan.
Borrowing or lending a car
Friends or family members may occasionally ask to borrow your car for a day or two, or it might happen the other way round. In either case, if the borrower gets into an accident with the car, who is going to be liable for the damages? The owner might add the borrower onto his own existing policy for a short period of time, but doing so is time-consuming and not without its drawbacks; in the case of an accident, it is the owner who may lose his or her no-claim bonus and suffer increased premiums, through no fault of his/her own.
You can have the borrower purchase a separate temporary car insurance policy of his/her own, for one day or otherwise as long as may be necessary. This can be done quickly and cheaply, so both the owner and the borrower can have peace of mind knowing the car is insured for as long as the borrower needs, while posing no risk to the standard policy already on the car.
Using a car for the short term
If you have a car which you're not planning to keep for an extended period of time, the one-year plan certainly isn't going to be worth it, since you do not need that much coverage in any case! However, leaving a temporary car uninsured is not the best option, as should already be apparent.
Therefore, you may consider getting a longer-term temporary car insurance policy, which can stretch up to 28 days. Of course, it is not advisable that these temporary policies be used for too long, for they are likely to be more expensive than the standard full-time insurance policy. However, these short term policies also offer increased flexibility, in that they can offer coverage for a vehicle for only as long as it is needed.
Other situations
Intending to rent a car for a road trip? Selling your car and lending it to prospective customers for test drives? Or perhaps your regular full-time insurance plan has expired, and you have yet to get around to renewing the coverage on your car? Temporary car insurance policies have the flexibility needed to ensure coverage in various situations, so don't hesitate to get one for your own car if you need it!
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