Short Term Car Insurance

Do you own a car?  Do you have car insurance?  If so, you probably have long term car insurance where you pay an annual fee that may or may not be broken up into a monthly fee.  This is what most people think of when they hear "car insurance" but it is not your only choice.  Yes, it is what you need if you are looking to be insured over the long term, but there are other choices as well.

Short term car insurance is another option.  When would you need short term car insurance?  This is most commonly necessary when you need insurance for a rental car, will only be owning the car for a short period of time, or for any reason why you would need car insurance for typically less then a year.

It would be hard to get traditional long term car insurance when you know you will only need it for the short term.  They might take this into consideration when choosing a rate.  If the insurance company knows you will only be with them for a short period of time, they know you don't have much time to build up a good driving record and they can't count on that to verify the use of a low rate.  This is where short term car insurance comes in.

Short Term Car Insurance for a Rental Car

Have you ever used a rental car?  When is it necessary to get insurance?  Of course, the longer you have the car, the higher the chance of something happening.  If you're only going to be using the car for a day or two you might pass up on it but if you will be having it for several weeks, say until you get a new car or until your regular car is fixed, you might want to spring for the insurance.

Even if you are only going to be having the car for a day, you just need to weigh your options.  If you're only going to have it for a day, how expensive could the insurance be?  If it's pretty cheap, you might as well get it just in case.  Who knows what it could cost you if you didn't have insurance.  Think about it before you say "no thanks".

There may also be temporary situations where short term car insurance will be useful.  If you know you will be owning a car for a limited amount of time, you know it will be short term.  For example, maybe you are borrowing your friends car who is going to be away for a few months and after that you will no longer need a vehicle because you're moving to the city and plan on using public transportation.  This would be a short term situation where you would still need car insurance.  Another example would be a foreigner temporarily visiting the country.

The reason why you would get insurance that is labeled short term is because most insurance policies are set up for one year.  Why pay for a year of car insurance if you aren't going to need it?  Short term car insurance policies usually last for 6 months.

If you are looking for this type of insurance, you will first need to look for a company that offers this type of insurance.  Many do, but not all of them.  First, check to see if the company you are using now or you used to use, if applicable, has short term insurance.  They may be able to give you a lower rate because you have proving your low risk to them already and have already worked with them.

Most short term insurance works the same way as long term.  You set up your policy with a deductible and get liability coverage, collision, medical, etc.  They might even offer discounts, so make sure you look into that.  Look into all the benefits you would want with regular insurance.  The only real difference is that you are getting insurance for half the time.  You mgiht even end up needing it longer and might stay with that company. 

Keep in mind the possibility that you might end up need long term coverage, therefore work with a company you would be happy with long term.  You could change later if you needed too, but if you can avoid that hassle, go for it.

Make sure you look for coverage that will work best for you in your situation.  Get the lowest price for the most coverage.  If you want to lower the rate, increase the deductible.  The deductible is the amount you pay if you got into an accident and it was your fault.  Get discounts if you can.