- Personal Finance
Understanding Short Term Car Insurance
Insurance Exists To Provide Financial Security For People During Times Of Unforeseen Circumstances
Insurance exists to provide financial security for people during times of unforeseen circumstances. Moreover, it ensures that immediate attention is brought to these matters of serious concern. Many laws in various countries nowadays require that all vehicles be insured. Some car dealers would not even allow their customers to drive the newly bought car out of the showroom without having and presenting the necessary insurance papers, be it long term or short term car insurance. In a way, it is a community effort to protect its drivers during stressful moments such as vehicular accidents or during more grim events such as death.
However, acquiring car insurance isn’t as easy as it seems especially if one’s wallet does not permit one to do so. Sometimes, people just do not have the time and money to settle for a good insurance or cannot even decide on what kind of automobile insurance suits them but still need to acquire a form of such as required by the government or the car dealer. It is a good thing that temporary or short term car insurance was created to settle such matters. Having even the shortest of journeys covered prevents drivers from making a huge mistake.
Possessing temporary auto insurance policies may not necessarily include all the benefits permanent or long term policies have mainly because they come at cheaper prices and for shorter periods of time. Short term car insurance in a way may be comparable to term life insurance policies. Both of which last for a brief period of time, come at a lower price range, but are expensive to maintain if the policies are regularly renewed over longer durations. This type of automobile insurance may have a coverage period as short as one day or up to eleven months or so. It all really depends on what the driver’s needs are.
Some benefits of short term car insurance are generally similar to that of long term policies where full comprehensive and collision coverage is available. This policy offers protection against any claims made against the driver and may cover expenses sustained during accidents that may touch legal defense costs. Some plans however do not cover damage repairs while some limit it to breakdowns and damages to the audio system and/or windscreen. Furthermore, individuals may avail coverage for medical expenses encountered by both the driver and the passengers. For most companies, they need not take into consideration who is at fault in order to grant any claims made.
Short term car insurance is essentially great for people who are merely borrowing someone else’s car, renting a vehicle, going out of town, or making deliveries using a company car. They do not need to go through the hassle of being a dependent on somebody else’s car insurance nor will they have to go through the pains of a long term or permanent car insurance application. The whole system with which this type of vehicular insurance policy falls under is simply out of convenience and practicality.