Three Reasons To Consider Temporary Car Insurance

Thursday, February 4th, 2010 at 9:05 am

Car insurance is something for which there is a universal need. In fact, most states have implemented laws that require a certain minimum amount of liability insurance in order to operate a vehicle legally on their roadways. While standard insurance policies are written to provide coverage for a long term, typically six months or a year, there are times when a person may wish to consider taking out temporary car insurance instead of a full term policy.

Temporary car insurance differs from regular policies in that it is written for a term measured in days or weeks rather than months. The premiums are often higher for a temporary policy when compared with a regular policy, but there are times when the temporary need outweighs the difference in premiums. Here are three reasons to consider taking out temporary car insurance instead of or in addition to a regular policy.

Traveling to another state can be a good time to consider buying temporary additional insurance coverage. If the state one is traveling to or any intervening states require more insurance than one normally carries, it could lead to legal difficulties as well as financial hardship if one is involved in an accident and found not to have adequate coverage.

In such cases, if taking out additional insurance on one’s permanent policy is not desirable, one may wish to consider adding the needed coverage by taking out a temporary policy for the duration of the trip. In this way, one can eliminate the risks associated with being caught driving with less coverage than the law allows in the areas one is visiting.

Sometimes, a member of the extended family may come and stay with someone. If that happens, it may be necessary to add them as a driver to the car insurance policy. This will often result in a change in rates, especially if this new driver is a teenager or elderly.

If their stay is going to be of a limited duration, and coverage is only needed for a short time, it may prove more economically feasible to take out a short term policy that names that person as a driver than to add them to the normal policy.

Many parents like to recognize the achievement their child makes when they graduate high school or college by buying a car as a gift. While the student will be expected to provide insurance for him/herself as the owner of the car, what happens if the car is wrecked between the time it leaves the dealership and the time it is delivered to the student? This is a good time to consider providing temporary coverage to protect one’s investment until it is given to the child and he/she has a chance to buy his/her own coverage.

As stated, car insurance a universal need when operating a vehicle. While it is customary to buy policies in terms that last from six months to a year, there are times when it may be wiser to consider taking out temporary car insurance.