Short term auto insurance or “day car insurance” is an automobile coverage that is valid for a short period only. Through the years it has become quite popular and there are now many options to choose from.
Short Term Car Insurance
This kind of coverage is necessary for those drivers who drive leased or rented cars, especially while on a holiday and for people who own cars on a temporary basis.
When is short term auto insurance necessary?
- Immediate insurance if you have just bought a car; prior to selecting the proper coverage for the new vehicle
- When you borrow your friend’s/relative’s car for a few days you need it
- When your friend/relative borrows your car for a few days he needs it
- When you are driving any vehicle other than yours that is leased or rented on a short term basis
- When you lend the car to a temporary driver who is a guest in your house
- When your children are home on a vacation, for a short period
- Vehicle demonstrations when the driver is not accompanied by the sales personnel
- When you own additional cars on a temporary basis
Short term auto insurance has a provision for listing additional drivers for your car that hardly affects the no-claims compensation of your primary auto insurance.
There are several reasons why you or anyone you know may be driving a car temporarily. That is why it is so necessary to have a temporary insurance as accidents or mishaps can happen anywhere, anytime, and for the most unlikely of causes. When you are driving a car that is not yours, you will need a policy to protect yourself and your vehicle. This is the basic reason for picking up a short term auto insurance.
For procuring a quote for short term auto insurance, you just have to requisition a quote from an agency that has good options of temporary coverage. Generally there are hardly any discounts awarded along with temporary auto insurance policies.
Short term auto insurance resembles any other regular coverage plan but cannot be renewed automatically like the latter. Short term plan can include collision and liability coverage. The premium rates of the short term auto insurance will vary according to
- Time for which coverage is sought
- Driving record of the person seeking the coverage
- Type of coverage chosen
- Type of car chosen for temporary coverage (expensive, new and uneconomical vehicles tend to attract a higher premium than compact, new and safer cars
Normally short term auto insurance is made for 6 to 12 months. Sometimes the car may still be covered for some time after you have acquired it. There are provisions in some cars taken on rental lease basis to be included in the coverage as an additional driver. This may bring down your premium costs.
When there are so many favorable options available in the insurance market for short term auto insurance, it becomes both simple and necessary to ensure that you are insured to safeguard against mishaps.