What is short term Car insurance and how can you get it?

Short Term Car Insurance

Insurance that covers you or another driver for short period of time starting from 1 to 28 days is called short term Car insurance. This insurance can be taken for vehicle that is either temporarily owned or taken on rent. There is however limit to the number of such policies that you can take in a year.

In this type of insurances, a person either add another person to his policy for some time or approve him to arrange a policy that allows you to use the vehicle. For this purpose, one needs to give information like name, date of birth, occupation, driving license and driving history, complete detail of the vehicle that you need to insure and the time for which you need to insure the required vehicle.

When all the formalities are done and policy comes into effect, you can use the vehicle for the agreed time. There is option of third party also in this type of insurance. Sometimes these types of policies are cheaper to have than those 12 months polices.

However, if you are going to drive the car on regular bases, opt for regular policy only. In such cases, short term policies cannot act as replacement to annual policy.

Who can use short term Car Insurance?

Short term car insurance policies can be really useful to drivers in following cases:

  • If you are learning to drive and do not want your name to be pen down as named driver on annual policy then it is always better to have a short term insurance.
  • If you can drive but do not have your own car but drive friends or relatives car then too taking short term car insurance is beneficial. It is also a good option for those students who only drive during vacations. It is also useful for those young drivers who wish to take their parents car for short trip.
  • Short term insurance can be good option if you drive your car occasionally.

Which Cars can be Insured under short term Insurance Policy?

Modified cars are the first exclusion from short term car insurance. Cars modified via factory specification are mostly excluded. Other exclusion from short term insurance is imported cars. Most of the insurance companies do not agree for short term insurance for imported cars. So before taking any policy do go through entire terms and conditions and read the exclusions properly.

Short term insurance is really a very good option in many circumstances but better understand its limitation before. While taking the short term car insurance, it should be different from the current existing policy and should cover same risks.

How to get short term Insurance Policy?

If you wish to buy short term car insurance, follow the steps mentioned below:

  1. Inquire about the short term policy from your current insurance company: there are great chances of your current insurance company providing you with the short term insurance at reasonable price. Being an old customer you can get discount on new policy premiums.
  2. Keep short term policy separate from the primary car insurance: by keeping your primary insurance separate from short term insurance, you minimize the risk of having claim on existing policy.
  3. Find an appropriate insurance company: if your existing insurance company does not provide the short term policy at reasonable price, ten you can opt another company but do choose it carefully. Before choosing a new insurance company be sure about the following things:
  • Check out with your state insurance department that the company you are going to choose is certified or not.
  • There are many states that also provide database of licensed insurers.
  • Once you find a licensed insurer be sure that they do sell short term insurance. If yes, ask for a quote from them. Be prepared as you need to give information about yourself and the vehicle.
  1. Compare different short term policies quote and see that they offer same coverage: be cautious and see that personal property damage, bodily injury and medical coverage accounts should be same and also the policies should be for equal number of days. Also remember to check your chosen insurance company’s credit rating by A. M. Best. This firm reviews the company’s capability to pay claims. Remember to compare polices that cover same type of vehicle.
  2. Finally purchase the short term policy: Now when you have done a proper research and found out a company to buy the short term policy, go for it. But if you have chosen a new insurance company, you need to provide more information as follows:
  • You will have to give vehicle identification number, make year and model of the vehicle you need to insure.
  • You also need to give the insurance company your name, address and driver’s license. If someone else will drive your vehicle you also have to give his/her information.
  • If you had any recent accident, you need to explain it. This information about the other person driving your car will also be needed.
  • If you are driving someone else’s vehicle you need to verify your own policy too.

So next time if you have any of the above mentioned reasons of buying a short term policy for your vehicle, remember the points mentioned above and enjoy the benefits of having short term policy for your vehicle. If you have any queries for car insurance short term; then comment in below comment box. Read more articles on lookupin.