Most insurance policies are annual or six-month agreements with an insurance provider, meaning that you need to pay a large lump sum for coverage over the entire term of the contract. While your other bills might be month-to-month payments, auto insurance is generally not that way. This is due to a number of factors such as the need to keep people from skipping out on their insurance coverage, to keep people from making claims that the insurance company can’t afford, and the legal obligation for drivers to carry coverage at all times.
However, there may be times when you don’t want to commit to an entire six months to a year of auto insurance coverage. You may be driving a car you know you’re going to sell, you may only be helping someone out for a short period of time, or you may simply not have the money to pay a lump sum for a long-term contract. To find the best rates for auto insurance, enter your ZIP code into our FREE comparison tool above!
The Answer To The Question: Yes, There Is
Of course, there are some downsides to having temporary auto insurance coverage. The main downside to temporary or month-to-month insurance coverage is that each month’s payment is likely to be higher than it would be if you had purchased an annual plan. Of course, the full dollar amount for an annual plan is always going to be bigger than a temporary month-to-month payment, so you have to decide which is more affordable for you. The shorter the term, the more expensive each payment is going to be.
If you need temporary auto insurance coverage, many prominent companies offer it alongside their standard insurance policies. You can find the best deals on temporary auto insurance by using our free comparison tool. Just enter your information and indicate that you’re looking for a temporary policy, and the program will find and organize quotes from all the insurance policy providers in your area. It’s going to be more expensive per month than you’re used to, so you owe it to yourself to compare prices and save!
When to Get Temporary Auto Insurance
You may need to get temporary auto insurance if any of these situations apply to you:
- You are attending school or traveling in another part of the country for at most a few months at a time. You may only be driving for part of the year. If you only need auto insurance for one month, it may be cheaper to buy temporary insurance than to buy an entire year’s policy or to rent a vehicle and rely on rental insurance coverage.
- You have just purchased a new automobile, but you need to take time to choose an insurance provider. Unless you have proof of insurance, you will not be legally allowed to drive the car off the lot. If you buy temporary insurance from anyone, it will be cheaper for the month and give you the time you need to make a more informed decision about a permanent insurance provider/
- You’re planning to make some money by flipping cars – buying them broken, fixing them up, and selling them for more money. In order to drive the car to prospective buyers, it may make sense to get a temporary policy so you can legally stay on the road.
- A friend is visiting from out of town and you want to give him or her the option of using your car. Adding that person to your insurance policy may cost a lot and may damage your insurance rating, so you may instead wish to set your friend up with temporary auto insurance to save money and reduce hassle.
How to Choose Your Temporary Coverage Policy
Buying a temporary auto insurance policy is not as easy as buying a more permanent one. You need to dot more i’s and cross more t’s to be sure that you are getting a fair deal. For instance, you need to ask about the specifics of the temporary coverage terms and figure out how easy it is to renew or extend your term. You should also confirm that your temporary coverage policy includes, if you want it to, collision and comprehensive coverage in addition to standard third party liability coverage.
Check to see how much money your temporary policy covers – some will pay the cost of repairing your vehicle, while others require you to pay a deductible, and still others only pay up to a certain point, usually lower than a standard auto insurance policy. Many temporary policies have an age limit that may be as high as 25 years of age. Check with your insurance provider.
As with any insurance policy, a good driving record, a safe car, and a neighborhood with a low incidence of crime will cut your auto insurance rates.
Where to Find Temporary Auto Coverage
It is pretty easy to find temporary insurance coverage on the Internet, whether through our comparison tool or simply through your favorite search engine. We do recommend that you use the comparison tool so you can make sure that your temporary coverage rates are good and coverage options are what you want. This lets you look at quotes from a variety of top insurers at the same time.
Of course, the price quote isn’t the only important thing about finding a good short-term auto insurance plan. You want to be sure that you are adequately protected in the event of an accident. Even if your state uses a no-fault system, you still want to have strong third-party liability protection, because hospital bills are higher than ever.
Think of buying a temporary auto insurance policy just the same way that you would buy a long-term policy. Consider everything that could happen, then consider your budget and what you are able to afford. When weighing those two competing options, you should be able to come to a middle ground that works for you and your family to protect you against damage or loss.
Compare auto insurance quotes today! Use our FREE program to get started. Just enter your ZIP code and other insurance-related information and we will begin comparing policies in your area. When you compare prices, you save!
