5 Reasons to Get Temporary-Auto Insurance

Temporary car insurance is a useful option during those times when you just need coverage for a few days. There are many reasons why you would require car insurance coverage for a short period of time.

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Temporary auto insurance can be really helpful in those instances when you need insurance for your vehicle for a short period of time. It is a favorable alternative to making a large down payment on a long-term policy that you don’t plan to keep for the full duration of the policy. Many insurance providers charge an early cancellation fee to discourage this.

Having temporary insurance is also a preferable option to having no insurance coverage at all. Having a lapse of coverage of even one day raises a red flag with insurers, which will increase your car insurance costs for the future.

#1: You Are Between Coverage

There could be times when you are about to switch coverage, and you might have a few days between the end of your old coverage and the start of your new policy. Temporary car insurance is a great option in such an instance.

Perhaps you have gotten married and you and your spouse are planning to combine your policies. While you can usually set the start date of any new insurance, you and your spouse might have two different end dates of your separate insurance policies to consider. You can overlap your new insurance with your old, or you can utilize temporary insurance.

You might also be in-between coverage if your insurer is cancelling or refusing to renew your coverage. Your old insurer may be going out of business, changing their coverage focus, or feel that you are a too high of a risk to insure.

While most states require that insurance providers give you a certain amount of notice before cancelling or refusing to renew you coverage, you might not have prepared as well as you should have or the time might be short.

For instance, the Texas Department of Insurance maintains that providers in the Lone Star State are only required to give 10 days of notice. Notice is generally sent through the mail, so if you miss checking your mail for a few days, you might not even get the full 10 days.

If you find out that your insurance is set to expire tomorrow or the next day, then you will have precious little time to do all of the research and comparisons that you need to find a great company for a decent price.

Utilizing temporary auto insurance will give you time to look for a new long-term insurance provider.

#2: You Bought a Car

Usually when you buy a car, you get financing from the dealership or through a bank. Most times, the lender will require that you already have full coverage on the vehicle before you take possession of it, and you must show proof of insurance before you are allowed to drive away.

However, you might buy a vehicle for cash from a private individual. Temporary insurance coverage is an excellent option when you buy a vehicle outright, without any loan. Unless you are going to take your new vehicle home by towing or on the flatbed of a truck, you will need to have insurance coverage on the vehicle to drive it home.

You might not be planning to put the vehicle on the road right away; perhaps it needs work or modifications. Alternatively, you might have bought the vehicle on the fly, and you have not had the chance to research your insurance options. Either way, getting temporary insurance will have your new ride covered until you choose a long-term insurance provider.

#3: You Are Moving

Another reason why you might need to use temporary car insurance coverage is when you move. Many people might just alert their insurer once they have moved, but you run the risk of having problems if you go this route.

It is a gray area determining whether your insurance policy will still cover you in your new state or not.

Not all insurers offer insurance in every state, so you might have moved just to find out that your insurance coverage essentially stopped at the state line. Some insurers will refuse coverage, others will cover you until your policy is over and still other insurance companies might transfer your policy to another provider.

A better idea than just winging it and hoping that your insurance will transfer after a move is to find out beforehand. Knowing exactly what and what is not covered by your insurance is one tip that will increase your satisfaction with your coverage, according to Wiser Drivers. Contact your current insurer a few weeks before you move to inquire about the transfer of your coverage.

If your insurance can’t travel with you to your new state, temporary insurance coverage is a good option. Moving is a stressful undertaking that takes a lot of time and effort, and uses a great deal of your resources. Temporary insurance coverage will allow you to know that your car insurance needs are taken care of until you have time to research the providers in your new state.

#4: You Are on Vacation

Going on vacation also offers the opportunity for a lot of stress, though the aim of any vacation is obviously the opposite! A car accident on a vacation can ruin any plans of sun and fun that you may have had, especially if you find that your car insurance does not have all the coverage that you need.

You might be traveling through areas that have a much higher rate of accidents or thefts, making it more likely that you will have a claim.

When on vacation or traveling for any reason, you may need more insurance coverage than you need at home. Temporary car coverage can allow you to have full coverage while on unfamiliar roadways, without having to pay for an increase in the full length of your current coverage. Then you can enjoy your travels without having to worry about car insurance coverage.

#5: You Are Renting a Car

One of the most common reasons why you might need temporary car insurance is when you rent a vehicle. Whether you buy rental car insurance at the counter or from another provider, it is probably the most recognized forms of temporary coverage.

Many people choose not to purchase rental car insurance, relying on the transfer of regular insurance coverage or other coverage. There are a few drawbacks to relying on other coverage options, however.

For one, your regular insurance may not cover rental cars; it is a good idea to check it out before you travel, advises the National Association of Insurance Commissioners. Private car insurance coverage will also not cover a car that is being driven for business uses, even if it is a rental. In addition, accidents in a rental car will affect your risk and rates with your current car insurance.

Similarly, other options for covering a rental car are also not the best choice. Many people misunderstand their credit cards’ travel insurance coverage; most people don’t understand that coverage from credit cards can be secondary to some other primary insurance coverage or that it only covers damages to the rental vehicle. The only way to know for sure is to contact your credit card company to inquire about the coverage.

Getting temporary car insurance for your rental car is a smart idea, especially if you don’t have full coverage on your private car insurance.

When you drive a rental car, you are responsible for the damages you cause to others and the damage you cause to the car. Most rental vehicles are newer, low-mileage vehicles that also work as assets for a business. Causing an accident in a rental car will generate medical bills, repair bills, and loss-of-use bills.

Temporary car insurance coverage for a rental car has slightly different titles than private insurance, but the coverage is basically the same, according to the Insurance Information Institute.  Liability coverage must meet state minimums at least, though experts advise that you purchase more. It covers damages and injuries that you cause to others.

A Loss Damage Waiver or LDW takes the place of collision and comprehensive, though it doesn’t actually provide insurance coverage. It waives the responsibility of the renter for damages to the rental vehicle. Many temporary car insurance policies have clauses that exclude damages that occurred when a driver was driving recklessly or under the influence of an illegal substance.

Medical damages of the renter and any passengers can be covered through personal accident coverage and personal effects coverage will pay out if items are stolen from a rental vehicle. Temporary insurance in the form of rental car insurance should be a consideration for every rental.

Costs of Temporary Car Insurance

The costs of temporary auto insurance will naturally vary, and the prices are affected by driver factors just like with regular car insurance. To get a rough estimate, you can divide the six-month cost of your standard coverage by 180 to find out a per-day cost.

The best way to find a reputable insurer is to research the company and the best rates can be found through getting quotes for coverage. Whatever your reasons are for needing temporary car coverage, the common sense rules of auto insurance still apply.

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