Short-term car insurance: what you should know

Most car owners and drivers making car insurance coverage choices do so with standard policy considerations in mind. They determine the coverage needs that fit their unique driving circumstances, align themselves with whatever legal or contractual obligations they may be facing, and then they look for good prices or good service or a combination of both. Your standard car insurance policy covers a six-month term, though many established drivers and families will put a full-year coverage plan in place. But what if you need car insurance for an odd or temporary period of time, like two months? There is an option most people may not be aware of and that's short-term car insurance. Before you start thinking about short-term car insurance, there are a few things you need to familiarize yourself with.

Very narrowly-tailored coverage

Perhaps the most common form of temporary or short-term car insurance is the kind you acquire when you rent a car. This type of policy is, in essence, the template for most other forms of short-term car insurance. You purchase a policy for a specific period of time (in the case of rental car insurance, the term of the rental agreement) to cover the car and there are few other underwriting requirements.

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Extending the concept beyond a rental car agreement, short-term car insurance coverage is intended to cover a period that may represent a lapse in your regular insurance coverage or it can provide you with coverage if you need temporary use of a car and you don't have or wish to acquire more standard car insurance.

Circumstances may dictate this need

There are many different reasons and circumstances that may call for the need to take out short-term car insurance. Some of the more common ones include:

• You are going on a lengthy vacation (perhaps even to another country) and intend to use a rental car. A short-term auto insurance plan can cover you for any possible incident or accident.
• A short-term insurance policy can be useful if you have bought a new car but you haven't acquired or transferred or updated your regular insurance policy to reflect it.
• A short-term auto insurance policy can be important if you have a car in storage or if you are transporting a car for a long distance.
• Short-term auto insurance can be used if you are borrowing another person's car and for some reason won't be able to be added to his or her policy.
• If you are relocating to another country, or if you are going to be deployed for military service, and your regular car insurance policy is up for renewal, a short-term car insurance policy might be a good option if your relocation will happen sooner than the standard six months a normal policy term would cover.

Give serious consideration to coverage and limit options

When you decide to pursue a short-term auto insurance policy, be sure you evaluate all the coverage options and limits that will work best for you and your particular circumstances. Don't skimp. You can typically buid a policy with the same coverage options and limits as a standard coverage policy. Short-term coverage tends to be more costly than regular coverage (you pay for the convenience in many ways) and you may be tempted to pick the cheapest policy you can find. Choose your short-term auto coverage with as much diligence as you'd choose your regular car insurance coverage. Both types are meant to protect you in the same way.

Shop around

If you find yourself in need of a short-term car insurance policy, you may find yourself scanning online banner ads from insurance companies you've never heard of. A growing number of second-tier and secondary market insurers have latched on to this sector for high promotion, high margin campaigns. The truth is, nearly every major car insurance company (national and regional) can provide short-term insurance options. If you have a company you've been wokring with and need to consider a short-term policy, ask your agent or representative. Just as with standard policies, it is always a good idea to shop around and compare. While you may not be eligible for the premium discounts on a short-term auto insurance policy that you could apply for with a standard policy, there are savings to be found by comparing and working with companies to get the best rates available.

If you think you might be in need of a short-term car insurance solution, a great way to find out for sure would be to speak with a local, licensed car insurance agent. If you currently don't have a car insurance agent, or if you're in the market for some comparison shopping, Reply! can be a great resource for you. We can help you find car insurance agents near you who can help you find the best short-term auto insurance options for your particular circumstances.