Temporary Car Insurance: Everything You Should Know
Suppose you want to go for a road trip and you’re going to use a car for that particular time only. Are you aware that you can have temporary car insurance?
What Is Temporary Car Insurance?
Also known as short-term car insurance, it is an option for those who are going to use a vehicle for a short period for several reasons, like a road trip. Most insurance companies often underwrite insurance policies that last for about a year. Standard insurance is not recommended if needed for only a short term because of the cost.
Who Needs Temporary Car Insurance?
- Those who use a ride-sharing service like Uber that needs insurance during the time that they drive a car that they do not own.
- People who want to supplement their existing car insurance.
- Those who will visit a different country and rent a car for their visit.
- Those who rent a vehicle on a regular basis.
- Individuals who borrow a car for an extended period of time.
- Those who would like to buy a car and have plans of reselling it.
Does My Personal Car Insurance Include Temporary Car Use?
Before you even think of buying temporary car insurance, you might want to check if your car insurance covers temporary car use, such as rental cars. If it does, you may not need to buy temporary car insurance at all. For instance, your comprehensive coverage includes $500 deductible. This is the same coverage that you can get for your rental car. In short, all the limits and deductibles from your personal car would apply to your rental car.
To know if your car insurance covers the use of temporary cars, talk to your insurance agent and find out.
Can My Home Insurance Include Temporary Car Insurance?
In general, home insurance does not include coverage for temporary car insurance. It is, in fact, often stipulated to exclude car liabilities. In general, your home insurance can only cover lost items in the car. Personal effects may be under your homeowner’s or renter’s insurance policy. However, you should note that all items that are not part of the vehicle are not included in car insurance. You may have to take out additional personal effects coverage from your agency if you deem it necessary.
Also, if you are planning to claim personal property loss against your home or renter policy, you may be subjected to a deductible. You may also want to check if your loss-free discount will be voided as a result.
What Does Temporary Car Insurance Cover?
Your coverage depends on what type of temporary insurance you get, but most of them include:
- Collision and Comprehensive Coverages
- Uninsured and Underinsured Motorists Medical Payments
- Loss of Use
What is the Cost of Temporary Car Insurance?
Like standard car insurance, the cost of your temporary car insurance will depend on the car that you are insuring, your method of use, your insurance history, and the length of the insurance policy. The cost can also vary from where you buy your temporary car insurance. For example, car insurance from a car rental agency would understandably be much more expensive than getting it directly from an insurance company.
Temporary car insurance is not for everybody. However, there are particular groups of people who would benefit from such coverage. Assess your requirements and the need for such protection. If you are likely to use different cars on a short-term basis, then it is best to get a short-term policy to suit your budget and needs. However, if you are going to use a car for about a year or so, then you might want to look for a comprehensive insurance policy instead.