Below is USA data. Visit this site for UK data.

If you need to buy insurance coverage for a vehicle that you will be using temporarily, but you have no interest in making a change to the insurance policy that you have already set up for you main automobile, there is a good chance that you could benefit by taking advantage of short term car insurance.

There are many different reasons that you might want to buy short term car insurance. For example, you may live in an area that is prone to hurricanes or other natural disasters. You could purchase a policy that protects your vehicle from these threats, but only during the months where it is an issue. There is no reason to protect your vehicle from hurricanes during seasons when hurricanes don't happen. It is a waste of money.

Another reason that you might want to purchase short term car insurance is if you are using a rental car. When you borrow a rental car, the insurance that comes with the car usually only protects the person who is borrowing the car. If anybody else drives the car, the coverage is not in effect. In the event that you are going on a vacation with a group of friends, it is unlikely that only one person will want to drive the entire time. By taking advantage of short term car insurance, you will be able to purchase a temporary policy allowing everybody to drive the car.

Some areas of the country have a higher rate of accidents than others. If you have a seasonal home, for example, it might make sense to only purchase car insurance for certain times of the year. When you are in the high risk zone, for example, you could sign up for shot term car insurance that provides you with a comprehensive policy. When you are in a safer driving area, you can close the short term car insurance policy and only sign up for liability insurance.

It also makes a great deal of sense for a foreigner to sign up for short term car insurance. If they only plan to remain in the country for a few months, there is no reason for them to sign up for a plan that will provide them with coverage for an entire year. It would only be a waste of money on their part. Since the traffic laws can vary quite a bit from one country to another, it makes sense for a foreigner to sign up for a more comprehensive policy than the typically would in their own country.

Another situation in which temporary car insurance makes sense is when you are borrowing somebody else's car. If you car is in the shop, for example, you might want to purchase short term car insurance so that you won't be held liable for any damage that you cause to the car while you are borrowing it.


Copyright Colin Cameron 2010