What You Need to Know About Short-Term Car Insurance

If you’re in the market for short-term car insurance, you may wonder whether there are any benefits to this type of policy. While it does have its disadvantages, short-term car insurance can be an attractive option if you need to fill in gaps in your coverage and don’t want to shell out full price on an annual policy when you only need it occasionally. Here are some things to consider if you’re looking into short-term car insurance options.

Get started by learning more about your state’s minimum coverage

In every state, drivers are required to carry at least a certain amount of liability insurance—enough to protect themselves if they accidentally hit and injure someone or damage another driver’s car. The exact minimum coverage requirements vary from state to state, but usually include: Liability: This part of your auto insurance policy pays for other people’s medical bills and vehicle repairs if you’re in an accident.

Compare quotes from top insurers using our comparison tool

Comparing and comparing quotes is a great way to shop for insurance, whether you’re looking for short-term car insurance or something more long term. Start by finding and comparing top insurance companies by using our free quote comparison tool. Once you’ve found a few, get three estimates that fit your needs. This will make sure you can get comprehensive coverage at an affordable price.

Get temporary coverage as soon as

In order to obtain temporary car insurance, you need a current policy in place. This will show your new insurance company that you’re a good driver and that you’re committed to maintaining coverage. It’s also a way for them to gauge how much risk they’ll be taking on by insuring you for just a few months.

Increase your deductible and save money on premium costs

When you take on a higher deductible—meaning you have to pay for more of your car repairs before your insurance company covers anything—you end up paying less money in monthly premiums. When choosing a deductible, think about how much you can realistically afford and then consider taking out a personal loan or applying for a credit card with a low interest rate so that if (or when) something goes wrong, you can pay it off without breaking your budget.

Choose between 6 different types of policies

When it comes to car insurance, you need to choose between six different options: Liability Only: Pays for injuries and property damage caused by your vehicle. Comprehensive: Offers protection from comprehensive and collision incidents, but only covers damage caused by natural disasters or theft. Collision: Helps pay for repairs if your car is damaged from another driver or object hitting it. Medical Payments: Pays for medical costs in cases of injury that occur within your vehicle.

Tips for getting the most out of your policy

Before signing up for short-term car insurance, it’s a good idea to think through what you’ll be using your car for. If you’re simply looking for something temporary, such as while your primary vehicle is in repairs, look into whether or not your credit card can provide coverage. Similarly, if you don’t drive frequently, you may want to look into usage fees.

Add any passengers or vehicles you may have

Before setting up short-term car insurance, you’ll need to do a little research. First, contact your state’s DMV for specific details about required minimum coverage levels—you don’t want to be caught without enough liability protection if you get into an accident. Next, take note of how many people will be riding in your vehicle (and with which additional vehicles) and any passengers who will not be listed on your policy.

Enter details about your vehicle(s)

Buying temporary car insurance when you need it is easy—and you don’t even have to go through an agent. Most companies require little more than your details and a driver’s license number in order to provide short-term coverage. When filling out your policy, keep in mind that you’ll need to get full coverage again at some point, whether through a new carrier or your current one.

Determine what deductible level works best for you

Most states allow you to choose a deductible when you buy car insurance. The higher your deductible, the lower your monthly premium will be; vice versa, lower deductibles mean higher premiums. Before choosing a deductible level for your policy, consider how much money you have and can afford to put toward repairs if disaster strikes. If $1,000 seems high but affordable, then go with that deductible level.

Review all information before submitting

Many short-term car insurance policies require you to read and review all information before submitting your application. This includes coverage details, rates, and more. Make sure you have a copy of your current policy at hand when reviewing information, just in case there are any questions or concerns that need addressing before submission. It’s always a good idea to have a clear understanding of what is included in your policy and what is not.

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