In almost every state in the US, it is mandatory to have a liability insurance policy to legally drive a car. A liability insurance policy covers the other person that might get injured or get their property damaged in an accident that is your fault. Not just for legal ramifications, but if you get in an accident without a collision or comprehensive insurance policy, you might end up paying a pretty penny to fix your car or your body.
But there are cases when you don’t need to get an insurance policy for the long term. Perhaps you need the insurance coverage for just a month or two months and that’s it. So why spend money and pay for the entire year? What if you need short-term car insurance? This article will describe in detail everything you need to know about the different ways you can get short-term insurance policies and why.
Auto Insurance Policy Duration
Most of the people who buy auto insurance policies are looking for long-term coverage. This means that they intend to keep it for years. Since this is what the majority of people want and what makes insurance companies money. So it is very difficult, almost impossible, to find a reputable and reliable auto insurance company that will provide you insurance coverage for less than a year or six months.
So if you want to go with a reliable insurance company, the best option for you is to get an insurance policy for six months. But what happens when you don’t need the coverage after the second month? There’s a workaround for that as well.
Most auto insurance companies offer a total refund when you cancel a policy since it is a recurring payment service. We do advise that you contact your insurance agent or company first before trying this out. So if you need an insurance policy for just two months, choose the six-month coverage option with monthly payment. After your requirement is over, you can just cancel the policy. It’s just that simple. But there is a slight problem here.
Coverage Gap
If you decide to cancel your auto insurance coverage for some time and then get it back, it might increase the cost of the insurance coverage. Insurance companies take notice of periods when there is a car registered to your name, but it does not have auto insurance, even if the car was never driven during that period. Any gaps in your insurance coverage will make your insurance rates go up.
When do you need short-term insurance coverage? And is it really necessary to get general auto insurance coverage if you need the insurance for just a few months? There are many cases when someone might need insurance but only for the short term. Why should they go through a long process of getting general insurance? Here are some similar cases and how to handle them.
When Someone Needs to Borrow Your Car
It could be anyone either from your family or friend who would want to drive your car for some time. Or you could be the person who needs to drive someone else’s car. There are two options to consider here.
First is by asking the owner of the car to add you into their insurance policy as a registered driver. Insurance companies allow policyholders to add other people (family members and friends) to their policy, so in case of an accident, while they are driving, they get the coverage too.
So if you want to use your parents’ car or someone else’s car for a few days or weeks, then this will be the best option to go for. Avoid getting an insurance policy, and the insurance company won’t sell you a policy if you don’t have a car that’s registered to your name.
The second option would be to get a non-owner’s insurance policy. Almost all the large insurance companies offer non-owners insurance policies. With a little bit of research, find the policy with the lowest auto insurance rates and go for it. As the name suggests, this auto insurance policy is for people who want to drive a car but they don’t own one. It provides basic liability coverage and collision coverage and it would be perfect if you rent a car or drive someone else’s car for a short period of time.
Auto Insurance for Seasonal Use
There are many people who have a “seasonal” use for their vehicles. For example, some people might spend most of their time in Maine but they move to Florida during the winters or the other way around. This occasional move that lasts for about a month or two creates an issue with the auto insurance.
You might have a car in another state where you live for just a few months. Or you could be a college student and want to drive your car during the summer holidays back home. You don’t want to buy a full-fledged auto insurance policy that costs thousands of dollars for just a few months of use.
The best way to tackle this is a long way, but it would save you a lot of money, and a lot of legal trouble. First is, if your state allows it, you need to get an Affidavit of Non-Use from the local DMV that says that you will not be driving your car for some period of time.
Then you need to talk to your insurance company and check if they offer a storage insurance policy or something similar. This policy only offers comprehensive coverage and it will save you a lot of money. Note that you cannot and should not drive your car when there is no coverage. Some states might require you to submit your license plate as well.
This is how you can save some money by getting temporary, short-term coverage. Note that almost all insurance companies will not offer short-term insurance.
