Tips for Buying a Short Term Car Insurance Policy

The need for short term car insurance can arise from several situations. Having to rent a car for an extended period can produce the need for short term car insurance. The same is true for a borrowed car that you will be using for a month or longer. Regardless of how long you will have possession of a car, it will need to be insured if you intend to drive it.

Short term car insurance can be purchased with the same options as permanent car insurance.

The primary purpose of short term car insurance is to protect the value of the car and meet the legal insurance requirements. If the car is old and you believe that you can afford to replace it for the owner if it is wrecked, you may be able to live without collision insurance. This will not eliminate the need to buy liability insurance to satisfy the law. Items like comprehensive and additional medical coverage can be added on if you choose. It is best to evaluate how the car will be used to determine the value of the other options before spending the money.

Buying short term car insurance can be costly.

Because car insurers have certain expenses linked to creating a new car insurance policy, shorter insurance terms will lead to a higher per month cost. Longer policy periods give insurers an opportunity to spread these extra costs over many premium payments. In some cases, it may be preferable to buy a regular policy and cancel it when it is no longer needed. Going this route will also keep the car insured if you choose to keep it longer than first expected.

In the case of longer term rentals, you may want to explore the option of buying the insurance from the car rental company.

While this type of insurance is costly, it can prove the be the best choice for some drivers. By purchasing the insurance directly through the car rental agency, you can assure yourself that you are meeting their requirements for full coverage insurance on the vehicle. Make sure that you are getting adequate liability insurance along with the collision policy. Car rental agencies are like lending institutions. Their main interest is in insuring their investment in the vehicle and not your personal assets.

Make sure that you know the exact coverage dates on short term car insurance.

Because this insurance is set up to expire in a relatively short time, you could become uninsured before you are finished with the car. Knowing the exact expiration date will keep this from becoming a problem. Before that date arrives, you need to either extend the insurance term or return the car to its owner. This will keep you legally and financially protected without buying more insurance than you need to do the job.