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What is short term car insurance?

Short term car insurance is exactly what the term implies to be.

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Hands protecting icon of car over wooden table. Top view of hands showing gesture of protecting car. Car insurance and automotive business concept.
Hands protecting icon of car over wooden table. Top view of hands showing gesture of protecting car. Car insurance and automotive business concept.

Short term car insurance is exactly what the term implies to be. It is a temporary insurance cover that car owners can use while they look for a more suitable and appropriate car insurance policy. Short term car insurance can be a lifesaver at times because driving without insurance is not permitted by law.

Maturity period for short term car insurance?

The exact maturity period for short term car insurance may vary anywhere between an hour to a month. It depends on the needs of the policyholder and the options available in the market.

Benefits of Short term car insurance

Short term car insurance comes with its benefits, if you only need insurance cover for a while.

  1. Just utilizing a vehicle for a brief timeframe so you can learn out how to drive
  2. Employing a vehicle for a couple of days, for instance in case you’re going on an excursion
  3. Gathering or conveying a vehicle that has a place with another person
  4. Obtaining a vehicle from a companion or family – it might be less expensive than being added to a current approach as a named driver
  5. Utilizing a courtesy vehicle provided by the mechanic or dealership.
  6. Sharing a vehicle for a brief period.
  7. Driving infrequently is one of those situations where short term car insurance is an ideal option. If you do not drive a lot and only use your car for infrequent excursions, then a short term insurance cover will save you money.
  8. In a crisis or an emergency situation where you have to drive another person’s vehicle to a medical clinic for instance

Coverage Limit

Short term car insurance comes with full comprehensive insurance cover including

  • Damage or loss done to third party,
  • Damage or loss to third party vehicle
  • Damage or loss to third party property
  • Accidental coverage
  • Theft coverage

Extra Coverage

Short term car insurance may provide the following additional coverage, depending on the insurance provider

  • European driving cover: Depending on the policies of the insurance provider, your short term car insurance may come with insurance cover for driving in the Euro zone. It is advised to check with your policy provider to check which countries are included in this coverage. This is an additional insurance cover and therefore comes at additional cost.
  • Breakdown and Maintenance cover: Breakdown covers gives coverage for car repair costs in case the car breaks down during a journey. This is an additional insurance cover and therefore comes at additional cost.
  • Additional driver cover: Short term additional driver coverage allows policy holders to add up to 4 drivers in their plan.

Cost of short term insurance cover

The reason why short term insurance stands out from the other insurance policies is that it carries a lower price tag and it is very flexible. Short term insurance allows policy holders to pay less than the more conventional insurance policies. It allows policy holders to take out the insurance policy according to their needs, without committing for the long term.

Short term car insurance plans are available for as low as $50 per month as compared to the more conventional long term car insurance policies that have premiums starting at $250 per month.

How do find the best short term insurance policy

In order to find the best rates for short term car insurance try to

  • Choose a smaller car with a good safety record. Once again, remember the rule of thumb. The lower the risk , the lower the cost. If your car is relatively cheaper and carries a good track record of road safety then the insurance provider will associate a lower risk rate with you, thereby allowing you to get cheaper rates.
  • Avoid unnecessary add ons. The additional insurance covers mentioned above are a premium example. Why pay for European coverage when you will not be travelling to Europe? Why pay for additional drivers when you plan to drive the car yourself? Smart thinking can help you lower your insurance premium.
  • Drive safe! Needless to say that insurance agencies monitor the driving habits of policy holders and they monitor this data to arrive at the risk factor that should be allocated to the policy holder. If you have a habit of driving safely, then your insurance provider will deem you as a safe driver thereby offering lower rates.
  • Look up online on insurance comparison sites. Check out the customer reviews of the shortlisted insurance providers on sites like Better Business Bureau, Trust Pilot and Glass Door.

Alternatives to Short term car insurance

The following options can be considered as alternatives to short term car insurance. Although it must be said that they are not perfect alternatives.

  • Pay as you go insurance allows users to take out insurance policies annually at flat rates.
  • Add an additional car into your insurance policy for a short amount of time.
  • Become an additional driver in someone else’s insurance policy. For instance parents, relatives and friends can add each other as additional drivers into their insurance plans.  

Short term car insurance is a good alternative to the conventional full time car insurance. It is particularly suited for individuals who do not drive much, it can also be used by individuals who at the time are not covered by a conventional policy and are trying to look for a good deal. For such individuals the short term car insurance can act as a stop gap arrangement till they find the deal they are looking for.

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