Temporary Car Insurance: A Cheaper Alternative
A guide to finding short-term insurance for your vehicle, when it’s ideal, and the benefits of doing so
With the recent hike in car insurance premiums, many people are faced with the burden of paying for expensive, long-term insurance. But there are ways you can make things easier and cheaper. One of the best ways to reduce your insurance costs is to get temporary auto insurance, instead of going for a full-time insurance policy. Temporary auto insurance is short-term coverage that can last a few days or months to protect a car. This type of insurance will come in handy if you are borrowing someone’s car or you are moving house.
Adding someone to an existing policy
Most insurance companies will have a provision where you may add a friend or relative to your existing car insurance policy, but this may not be the best option for multiple reasons. First, you may lose the no-claims benefits if someone is involved in an accident while driving the car. Additionally, your premium will be reviewed and increased based on the risk ratio if you have claims as a result of the accident, by whoever borrows the car. Therefore, the best alternative would be acquiring temporary auto insurance because it’s cheaper and more convenient than adding someone to an existing policy.
Who is eligible to buy temporary auto insurance?
Most insurance companies will provide coverage to anyone as long the policy holder is between the ages of 18 and 75. However, for temporary auto insurance coverage, many companies insist that the policy holder should be at least 21 years old. Also, those who have history on car insurance claims, motoring convictions, or points on their driving license will also find it very difficult to purchase temporary auto insurance coverage.
When temporary auto insurance is more ideal
There are varying situations where having temporary auto insurance will be a better option for you. Let’s look at those situations to see if you should consider this coverage option.
Making a short trip
If you have a car you occasionally use only for traveling or vacation, it will be unnecessary and more expensive to provide a comprehensive car insurance policy. Instead it’s best to undertake temporary auto insurance for the period you may be using the car, allowing you to cancel the policy when the car is no longer in use.
Borrowing a friend’s car
You should also consider temporary auto insurance when you are borrowing a friend’s car. Since you are going to need the car for a short time and you are most likely not included in their car insurance policy, having temporary auto insurance on the car will be a great idea.
Overall, temporary auto insurance is a cheaper and more convenient alternative to a full-time car insurance policy if you are certain the insured car will be put to use temporarily. It’s a great way to save money and still provide protection for the car against accidents. More information about temporary auto insurance can be found here.
This is a collaborative article.