Short term car insurance has a few unique advantages. If you have guests visiting from out of town, consider having them take out a short term policy if they plan to borrow your car. This is much more convenient than going through the red tape of adding them to your existing policy, only to remove them afterward.
Having them added to your plan not only jeopardizes any claim you might make, but potentially voids the policy itself. An only slightly better scenario is having the guest’s accident cancel any discounts you might enjoy if you still have a no-claim status.
If you’re the one traveling, telling your host that you’re using your own temporary car insurance will reduce a lot of anxiety about lending you his or her car, which might save you from the need to rent one of your own.
Because short term car insurance is usually purchased one day at a time for up to a month, and the application process is much faster, you can use it for situations that would otherwise make getting insurance too inconvenient. For instance, if you purchase a new vehicle, you’re legally required to have it insured before you drive it home.
Most people know this, but are anxious to use their new car, and would rather not endure the hassle of shopping for a long term insurer just yet. A short term policy lets to insure the car on the day of purchase, and keep insuring it on a day-to-day basis for as long as you need until you find the perfect annual policy.
What does short term car insurance cover? The length of coverage may be limited, but the amount of coverage is not. In addition to liability, temporary car insurance usually covers damage to the policy owner’s car, any medical expenses for passengers and coverage for drivers with little or no insurance.
While daily policies are the norm, you can also purchase 3-month and 6-month policies. These are perfect for anyone whose lifestyle requires some kind of extended travel, like students returning to their parents’ home from college, or business professionals who need to work on-site for any number of weeks.
In many states, stays beyond 90 days require a change of residence. A 6-month policy gives you one less layer of red tape to deal with if the length of your stay is uncertain.
International travelers should consider short term coverage if they’re bringing their own car along with them, or having it shipped to the same destination. This type of coverage is different than import car insurance, where a permanent resident is trying to insure an imported car that he or she plans to drive on a long term basis.
To apply for short term car insurance, you’ll need your country’s driver’s license, registration and vehicle title. Insurers may require you to get a non-citizen’s driver’s license if your stay exceeds 30 days.
Whether you’re traveling to another state or to another country, give some thought to whether or not doing so with your own car is more cost-effective than driving and insuring a rental car. Depending on the type of car you drive (e.g. sports car vs. economy car), your age, your marital status, income, etc., you may find that it’s much cheaper to rent.
But in most cases, travelers who bring their own cars are already committed to the decision, so to find the best provider, see the link below to a list of short term insurers in the UK and the US.