If short-term car insurance is in your future, you need to know that it doesn’t have to cost you an arm and a leg. Just as you can find inexpensive long-term policies, you can also get cheap short-term car insurance. The key to doing so is to understand how the short-term option works and the best place to get it.
Before going any further, it is important to define short-term car insurance. This type of insurance coverage is typically offered for 30 to 90 days and is designed for temporary driving needs. Some companies will extend the period to 180 days, but that’s not the industry norm.
Who Benefits from Short Term Car Insurance
Short-term car insurance is a product that benefits a very specific group of people. This group of people, for whatever reason, has no need to insure a vehicle for 12 months. They may own their own car or they may be borrowing a car from someone else.
For example, let’s say you wrecked your car in an accident and, because you had no collision insurance, you also had no money to replace it. You might borrow an unused car from a friend for a few months while you save money for a new car of your own. During those few months, it’s cheaper to ensure your friend’s car with short term insurance rather than continuing your 12-month policy.
Obtaining quotes for short-term car insurance it the same as getting them for a long-term policy. The fastest and easiest way is to use a website where you can enter your zip code and information about your car just once. That information is then submitted to multiple car insurance companies who will compete for your business.
If you use one of these websites and only receive one of two quotes, don’t be discouraged. Not all of the major car insurance companies offer short-term coverage. There are literally hundreds of specialty insurance providers that are experts in the short-term field; you may have to utilize one of them.
The idea here is to get as many quotes as you can so that you have plenty of data to compare. It’s likely you will get quotes from companies showing different rates for different periods of time. There may be one price for a 30-day policy, another price for 60 days, and so on. These are important things to compare.
Insurance Companies Round Up
In order to avoid administrative nightmares insurance companies offering short-term policies generally round up to the nearest month. For example, if you needed temporary car insurance for six weeks then you would pay for policy covering 60 days worth of driving. You will not get any reimbursement for the two weeks you don’t drive, so do not plan on it.
Should you need to renew your policy because your driving term is extended, you should have no problem doing so at least once. However, some insurance companies limit the number of extensions in order to prevent drivers from trying to save money with a perpetual short-term car insurance policy.
With quotes in hand, you can choose a company and get your policy. If you would like to see just how low your premiums could go, you might want to take the companies with the best quotes and pit them against each other to negotiate an overall lower rate. If you are a good negotiator, you might be able to get a much better price.