Short term car insurance is exactly what one would expect it to be; it is car insurance that lasts for a short term. The term can be anywhere from one day to six months, and it typically offers the same type of coverage that people receive from their annual policies. Short term car insurance is for drivers who will not be driving a particular car for a very long time, and the option of short term auto insurance keeps them from being in violation of the state’s laws while driving.
What Are the Legal Minimum Insurance Requirements?
Each state has minimum requirements of how much car insurance they want their drivers to have. For most states, drivers must have liability insurance that includes bodily injury liability and property damage liability insurance. This is insurance that will cover the bodily injury claims and property damage claims of the people hurt in the other vehicle in the event that one driver has been found to be at fault in the accident. Drivers found at fault will not be able to take advantage of this policy for their own medical bills and car repairs.
Some states only require liability insurance, but others also mandate that people have insurance to cover their own medical bills and property damage. This would be in addition to the liability coverage that all drivers must have, even if they are driving the car temporarily. Obtaining liability coverage eliminates a lot of the pain that occurs when drivers sue other drivers for their medical bills and property damage. Insurance that covers the drivers found at fault also make a lot of headaches disappear when it comes time to pay their own medical expenses and body shop bills.
Driving a Vehicle for a Short Period of Time
Sometimes, people will only be driving a particular vehicle for a short period of time. For these people, obtaining a full, annual auto insurance policy is not practical; a temporary car insurance policy is clearly the better option. For this reason, short term car insurance coverage comes in handy for these people, because there are several different instances when people will need to purchase such a policy. For one, some people take long distance vacations in cars that are not their own. When people do this, a good car insurance policy keeps them from being unprotected when they are spending so much time on the roads.
Some people have vehicles that they are not driving at the moment, but there is some reason that the car could possibly be damaged, even though it is not being driven. Those who would have needed a cheap short term car insurance policy for a vehicle that is stored, would have been car owners in Joplin, Missouri who experienced such a horribly devastating tornado. Short term car insurance would pay for the damages done to a car in the tornado; the car insurance would have been contracted for the duration of the tornado season.
Why it is Critical to Have a Short Term Car Insurance Cover
In some cases, people will only own a vehicle for a short period of time, and they will need to have insurance. Anything can happen to an automobile in the first few days that someone owns it, just like it could happen years later. These are people who cannot neglect the laws for purchasing auto insurance. If there is an accident and they are found at fault, they will not be able to extricate themselves from having to face the consequences just because they will not be in possession of the car for very much longer.
One other group of people who need a short term insurance policy is those who are visiting from foreign countries for a short time (e.g. car insurance abroad). These people could be in the United States for business reasons, and they will need a vehicle in order to attend to their business. They will not be exempt from the state’s laws for drivers to have car insurance, but because they will not be in the country for more than six months, a short term auto insurance policy would suit their needs.
How People Purchase Temporary Insurance Policies
People obtain short term, temporary insurance just as they would annual insurance. They can take advantage of the convenience of the Internet by seeking a quote from several short term car insurance companies online. They may also seek quotes offline by calling each one and inquiring as to whether or not they have short term vehicle coverage policies. The same questions that people are asked when they seek regular, annual auto insurance are the questions that will be asked of people who seek short term insurance.
Auto insurance companies have bi-annual policies that are in effect for six months (e.g. car insurance for 6 months). The short term car insurance contract is written similarly to these policies. The policyholder has the choice of paying for the short term, six month policy up front, all at once, or they can pay on a monthly basis. Other companies have even shorter term policies that offer crazy types of coverage like car insurance for a day.
You Can Still Get Quality Coverage on Short Term Policies
The short term car insurance policy is not short on coverage; it contains everything that an annual policy has to offer drivers. The short term car insurance policy gives drivers the bodily injury liability and property damage liability coverage that states obligate their drivers to have. Drivers can also opt to purchase further coverage that will pay for their own medical expenses and automobile repairs. Personal Injury Protection (PIP) insurance pays for several things such as the policyholder’s medical bills and drivers can purchase it in a short term policy. They can also purchase collision coverage that pays for the repairs of the policyholder’s vehicle in the event that it is damaged in a car collision.
Drivers can also purchase uninsured motorist and underinsured motorist bodily injury and property damage in a short term policy. The uninsured motorist coverage pays for the medical expenses and property damages done when a driver without insurance hits the short term driver. The short term drivers can sue these uninsured motorists that hit them, but they will not necessarily have the resources to pay the medical bills and car repair bills of the driver they hit. An underinsured motorist has inadequate coverage to meet all of the bills that the short term driver has to pay. Uninsured motorist and underinsured motorist coverage takes over with the payments where the driver at fault cannot.