When Do I Need to Get Temporary Car Insurance?

Temporary Car InsuranceMaybe this has happened to you. While attending college, the high price of tuition and living expenses leave little room for the luxury of owning a car, much less paying to have yourself insured while driving. Instead, you only drive when you have moved back home with your parents over winter break and summer vacation. They have kindly given you the keys to their cars so that you can get to your part-time job. So, what’s the best solution for insurance? It may just be temporary car insurance.

Your parents probably don’t want to pay to have you on their insurance all year long, especially if you are away at school for eight of those months. You probably can’t afford to chip in every month either. If you were to get into an accident, they would suffer from increased premiums at their annual renewal too.

What is temporary car insurance? It is a type of policy that is taken out only for the time period that you need it. Usually the rates for this period are a bit higher because the insurance company needs to recuperate their administrative and processing costs over a shorter period of time. However, there are some circumstances in which it is the best overall option.

There are many reasons why you might need car insurance for only a short period of time. Whether it’s only for a week, or up to eight months, temporary car insurance may be right solution for your situation.

So when would you need temporary car insurance?

1. Let’s say you live in a big city where there are various public transportation options that will take you anywhere you need to go. With so many ways to save money by taking the bus or subway, there has been no need for you to buy a car or get any auto insurance. The only problem is, you are planning a trip to another state and need to borrow or rent a car. Thankfully, you have several friends willing to lend you their car. However, you need to make sure you purchase temporary insurance for the length of time that you are planning to be away on your trip.

Even if you didn’t have any friends who could loan you a car, renting a vehicle is always an option. The rental car companies offer temporary insurance, but you can also purchase a policy on your own. Both will cover physical damage to the car and any other vehicles involved in an accident.

2. You may be one of those lucky individuals who has the luxury of owning multiple cars. Some these vehicles are only drivable in certain conditions, so you need to store them for the winter. It may be a fast and fun convertible or an all-terrain vehicle you take when driving in the mountains. Whatever the case, you do not necessarily need to have these cars insured during the months that they aren’t being driven. Having temporary insurance over the spring and summer months may be your best option.

3. If you are just learning to drive, you probably don’t have your own car. If you have your learner’s permit, or just got your driver’s license, you need to practice driving as much as possible while making sure that, should an accident occur, you are still insured. Having temporary insurance during this period is a way to make sure you, and your friend’s car, are covered.

There are many other reasons for obtaining temporary car insurance as well, such as being in between policies but still needing to drive, owning a vehicle for a temporary period of time, protecting a car while it’s in storage, and “drive-away” insurance after you have just bought a car.

The advantages of having short-term coverage are simple: the coverage is similar to a long-term policy. The policy will have liability and property damage, the option to set high limits, and it is usually inexpensive. You can set the liability rates anywhere from $10,000 to $300,000 and have property damage protection of up to $500,000. Of course, this depends on the type of vehicle, the amount of protection you choose, and how high you would like your premiums to be.

It’s easy to purchase a temporary policy too. All you need is a valid driver’s license, very few claims or penalty points (if your state has this system) within the last three years, and have not had your license revoked at any time.

The best way to learn more about temporary car insurance, and if it’s right for you, is by speaking with your independent insurance agent. He or she will have the knowledge and experience to recommend the right policy for your situation.

Other Enhanced Insurance articles related to Car Insurance:

Can My Friend Be on My Insurance Policy

What Coverage Do I Need when Leasing a Car

Does My Car Insurance Cover a Friend

How Many Drivers Can I Have on My Insurance Policy?

Is My New Car Covered by My Insurance?

GAP Insurance

Rental Car Insurance

Bodily Injury Coverage

Consumer Guide to Car Insurance

Does Car Insurance Cover the Car or the Driver

Enhanced Insurance is not written by attorneys. If you’re looking for legal advice, you need to contact a lawyer. Further, insurance practices and forms change constantly and are varied from state to state. For definitive answers in your area, contact a local agent.

While the majority of people want an agent involved in their purchase of insurance, many people want to see if they can save money by buying direct from the insurance company. Others want to try a direct quote to make sure the premium they’re now paying through their local agent is fair. If you want a quote for your coverage, click on the competitive quote button on the right side of this page.

Jenna Christianson has a passion for research and writing. She has worked as a researcher for a variety of organizations ranging from genealogy to the transportation industry and everything in between. She is excited to be a part of the Enhanced Insurance team!

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