Temporary Car Insurance – How It Works & How To Apply

What is temporary car insurance? How does it work? What type of coverage do I get to access with it? Need answers? Then you are on the right platform.

Temporary Car Insurance - How It Works & How To Apply

Here, we will be enlightening you on the important things you need to know about a temporary car insurance policy. Therefore, we implore you to read through to be enlightened.

In the meantime, temporary car insurance is a type of auto insurance that you can purchase if you want to insure a vehicle for a short period.

This policy is very helpful in different ways. But keep in mind that there are also some restrictions and limitations. What are the limitations? Read on to find out!

How It Works

Temporary car insurance is also known as short-term car insurance. However, if you plan to use this type of insurance on someone else’s car or vehicle, then it is only good that you get their permission first.

The same idea is also applicable if you are purchasing a new car and want it covered the moment you pick it up. You will be performing this process daily until the vehicle officially belongs to you. But you will need permission from the vendor.

One of the perks of this type of insurance is that you do not have to worry about your no-claims bonus because it is unaffected whenever you file a claim. However, you will need to inform the insurer that the accident was on your side.

Temporary car insurance works on rental cars as well, and you can get better coverage. But keep in mind that there are restrictions on temporary car insurance.

What Does Temporary Car Insurance Cover?

The coverage that you enjoy when you have or use temporary car insurance is not as extensive as having a full car policy.

However, this insurance policy can cover you if you want to drive a car for just an hour. So, getting one is a good idea if you’d be going on one-off trips, if you’d be using another person’s car when there’s an emergency, or when you get a new car and you are driving it home.

What Does It Not Cover?

Just like this policy covers several important things, there are certain things it also doesn’t cover.

However, before proceeding to buy a policy, it is important to know what the policy won’t cover. This is to help you know if what you are getting a policy for is available or not.

So, here is what this policy does not cover:

  • Activities and purposes that are not part of your policy’s terms and conditions.
  • If the car is ridden by a person who is not mentioned in the policy.
  • Theft and damage caused by leaving the key in the ignition.
  • The vehicle was not covered by the quote.
  • If you want a car that has passed a particular value.
  • If you have a motoring conviction on your license.
  • When a new driver has a full license that is less than a year old.

And if you are under the age of 21 or over 75 years old.

When Do I Need Temporary Or Short-Term Car Insurance?

Different situations might require the need to get a policy. They include:

  • Emergencies.
  • Test driving a brand-new car.
  • Waiting for repairs or maintenance.
  • Purchasing a new car.
  • Confiscated cars.
  • Moving home.
  • College students who are away from the University.

Also, if you are sharing a car on a long trip, you’ll need one.

How To Apply For Temporary Car Insurance

As mentioned earlier, applying for or getting temporary car insurance is very easy. Unlike an annual policy, you should get approved in the space of a few minutes.

However, if you are experiencing some difficulties applying, Here are some simple steps you can follow below:

  • Research lenders.
  • Compare these lenders and their rates.
  • Consider the cost.
  • Search for the coverage you need.
  • Once you do these and have found a good lender, check out its official website.
  • Follow the prompts.
  • Provide the necessary information and documents.

Once you are done, submit your application and wait for it to be reviewed. If approved, you can start filing claims and enjoying various coverage options.

Best Temporary Car Insurance Companies

If you have decided to opt for temporary car insurance but are not sure which company to get a policy from, Here are a few of the best companies you can apply for a policy with:

  • Geico.
  • State Farm.
  • Allstate.
  • Nationwide.
  • Progressive.
  • Hagerty.
  • DayInsure.
  • USAA.

You can check out the above companies, compare their coverages and costs, and then choose which is best for you and suits your budget.

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