Short Term Auto Insurance - Benefits Explained

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The standard auto insurance market usually sells two types of auto insurance policies – one with a six month term or one with a full year term. There aren't many options for drivers with short term driving needs but over the past few years insurance carriers are recognizing the need to come up with a product that caters to the changing driving climate. Many are now offering short term auto insurance policies to those who only need temporary coverage.

Who Needs Short Term Auto Insurance?

Imagine this. You're a college student in a university more than 100 miles away from home. You're a sophomore and are not yet allowed to have a car on campus but you'd like to drive home for the holidays. Your friend is willing to lend you his car but only if you have your own automobile insurance.

Perhaps you live in a foreign country and want to visit the United States. A family member is willing to lend you a vehicle but he can't add foreign drivers, even temporarily, to his policy. Your car insurance won't cover you while on foreign soil.

Both of these are classic examples of when short term auto insurance would become necessary. In both situations, the insurance would only be needed for a matter of weeks or months. Neither driver will be renting a vehicle, so they can't take advantage of rental car coverage.

The Benefits of Short Term Auto Insurance

Short term auto insurance policies can be very beneficial to both the owner of the policy and, in situations like the above, the owner of the vehicle in question. Some of the main benefits include the following:

  • A vehicle owner can require a driver to purchase short term auto insurance so that, in the event of an accident, he does not lose his good driver or accident free discounts.
  • A foreign driver will protect the owner of the car he is borrowing in the event he causes an accident while visiting.
  • Short term auto insurance is less expensive and doesn't have the same type of cancellation clauses or penalties as a standard policy.

Short term auto insurance isn't for everybody. If you own a vehicle and drive it on a regular basis you need to purchase a long-term policy. If you only need a vehicle for a brief period of time, use our website to submit your information and request a quote. We'll do our best to help you identify as many short term auto insurance companies as possible – and offer you competitive quotes!

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