Short-term auto insurance policies: what you should know

If you've just found out about short-term auto insurance policies, you're not alone. Many people are surprised to learn that short-term car insurance policies even exist, and part of that may be because they're not yet available everywhere. Short-term car insurance policies are a great option for people who only need insurance for a limited amount of time. Knowing what these policies are, what they cover and where to find them can help you decide if these policies are right for you.

The big difference...terms of coverage

Short-term auto insurance policies offer the same type of coverage options as standard auto insurance. Despite the prevalance of some lesser-known and even unheard of local providers who seem to corner the Internet when searching for "short-term" or "temporary" car insurance, nearly every major car insurance provider can write and sell you a short-term car insurance policy. A key difference with a short-term auto insurance policy is that you and the insurance company sign a contract stating that the insurance policy will only be active for a certain amount of time.

Standard car insurance policies run for six months or in some cases a full year and are automatically renewable at the end of these terms (as long as certain conditions are met and pending any rate hikes.) Short-term car insurance does not automatically renew. If you're interested in taking out short-term auto insurance policies, keep in mind that these policies have to actively be renewed on your part should you need coverage beyond the initial term of the contract.

A full range of available coverage options

If you're concerned about what type of coverage you'll actually be getting when you take out a short-term auto insurance policy, you shoulnd't be. There are very few coverage options found with standard car insurance policies that can't be included in a short-term auto insurance plan. A standard short-term car insurance policy will include liability, uninsured and underinsured motorists, collision and comprehensive coverage. If you live and drive in a no fault state that requires you to also carry some form of no fault car insurance, you can have medical payments or personal injury protection (PIP) coverage added. Depending on the company you are working with, additional types of coverage can be added to address issues unique to your situation.

Short-term or long-term, we'll send you free auto insurance quotes

Expect to pay more

As with many products or services, customization and convenience come at a premium. When it comes to cost, you should be aware that short-term auto insurance policies are more expensive than regular insurance policies. Your final cost will depend on many of the same factors that go into determining rates for standard car insurance policies, such as:

• Where you live
• Your age
• The make and model of the car that you'll be driving/insuring
• Your credit score
• Your driving history/record
• Under what circumstances you'll be driving (estimated miles, purpose for driving, etc.)

Just as with standard car insurance policies, there are steps you can take to better your rates when considering short-term auto insurance policies. While you may not have enough time to improve your driving record or your credit history when pursuing temporary car insurance, you may be able to control the make and model of car you'll be insuring, the purpose for driving, and you can probably select higher deductibles (when applicable) to lower what you will be paying in premium.

Still, it won't come cheap. To give you some example of just how much more you may pay for a short-term auto insurance policy, conside this:

We went to to online quote service for one of the nation's leading car insurance providers and did a brief comparison of rates. Our profile was for a 40-year old single male with a good driving record. We placed him in Lawrence, Kansas (a mid-range city and state for national car insurance rates) and put him in a 2011 Ford Flex with just over 35,000 miles on it. Kansas is a no fault state for car insurance rules and requirements, and we put the following coverage options in place:

• Liability at 150/300/50
• Personal injury protection (PIP) coverage at 50k
• Uninsured/underinsured coverage at 150/300
• Collision with a $500 deductible
• Comprehensive with a $500 deductible

Not counting any discounts (which were not available for the short-term policies) this driver will actually pay more for a 3-month auto insurance policy than for a full six-month standard policy (with these options in place) and a two-month policy is not that much less expensive overall than a full six-month standard policy.

Reasons you might need this

WIth the very real possibility of having to pay substantially more for it, you're probably now wondering why you'd ever need a short-term auto insurance policy. There are several times when short-term auto insurance can make sense:

• You should consider short-term auto insurance if you are temporarily in between auto policies. You may have let your coverage lapse when your lease ended, or you sold a car.
• You could get temporary insurance if you are going to be using a rental car on a vacation, especially a lengthy one and especially if you are leaving the state or country where you normally live and drive.
• If you have kids who are home for a college break, you may want to get short-term auto insurance for them so that they're covered if they drive your car.
• You'll probably be offered short-term auto insurance if you've bought a new car and need to drive it home from the dealership, but you don't yet have regular car insurance.
• If you're moving to another country or if you're being deployed overseas in militarty service, you may want short-term car insurance for a limited period before deploying. 

If you are in a sitiuation where you think you could benefit from a short-term auto insurance policy, it might be a good idea to speak with a local, licensed car insurance agent. An agent will be ale to answer any questions you may have and can help you get just the right amount of coverage for the time you need it without over-covering or over-paying. Reply! can certianly be of assistance here as we can put you in contact with local car insurance professionals who can help you get competitive quotes on short-term auto insurance policies.