Below is USA data. Visit
this site for UK
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
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