Temporary Car Insurance – How Does It Work?

Maybe you are familiar with the term, temporary car insurance, but do not really understand what it means. In the following information, we will explain the definition of temporary car insurance and how it works.

Definition: Temporary Car Insurance

Insurance companies understand that their customers have certain needs or situations that may require special assistance. Temporary car insurance is an example of such coverage that works to protect policyholders. Temporary car insurance policies protect individuals, in situations when their existing policy does not provide adequate coverage.

Examples: Temporary Car Insurance

An example of this type of insurance is when someone wants to take a test drive with a vehicle they’re thinking of purchasing, and they’d like to go farther than the dealership’s insurance will protect — temporary car insurance would be an ideal solution to their problem. In the event of an accident during a test drive, the temporary insurance will cover the costs without affecting the driver’s or the dealership’s insurance. Therefore, if you are the one driving — your insurance will not go up.

Temporary car insurance is also ideal, if you are traveling or going on vacation with friends and family. If you share driving responsibilities with other family members, each of the drivers may be listed on the temporary insurance policy, and regardless of who is driving, in the event of an accident — you will not be held, personally liable.

Another situation where temporary insurance would come in handy is if you are borrowing a truck, van or car to transport several people or move furniture. The temporary car insurance will allow you to do this while being fully covered. In the event that the vehicle is stolen, wrecked or vandalized, the temporary car insurance policy will pay the costs to replace or repair the vehicle.

Flexibility: Temporary Car Insurance

Temporary car insurance policies offer incredible flexibility. Policyholders are able to list any number of people who will be driving the particular vehicle. In addition, temporary insurance allows the policyholder to customize the insurance to meet their specific needs. This type of insurance provides immediate coverage, if you are driving a new car off the lot or taking a leased SUV on your family vacation — temporary car insurance is there to keep you safe and protected.

Additionally, temporary car insurance can be very cost-effective and provides daily insurance rates. If you only need coverage for one day, you can pay for a 24-hour period and not have to worry about paying long-term for coverage.

Terms: Temporary Car Insurance

Temporary auto insurance works great for any licensed driver between the ages of 21 to 75 years in age. A temporary car insurance policy can last for anywhere between one to 28 days. While there are limitations to getting temporary car insurance, the terms can vary between various providers. Therefore, you will need to speak with your insurance provider about any limitations prior to buying a short-term (or temporary) car insurance policy.

Temporary car insurance is a great way to ensure that you are protected in any situation, regardless of the circumstances or short-term period.

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