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Short Term Car Insurance

Insurance companies have come up with short term car insurance policies for those of us that don’t need a regular 6 months / one year policy. You might need one if you plan a cross country trip using a rented car. In addition, you might need it if a friend or relative comes over to your home for a shorter period of time and you want to allow him to use the car. Another scenario would be when you buy a new car and you haven’t figured out yet which company to choose for regular car insurance and while you think about this you acquire a short term policy so that you can legally drive the car on the road.

Let’s talk about how this type of insurance actually works. This policy will cover you for a limited amount of time that ranges from one day to usually 30 days, depending on what you need and what the insurance company can offer in return. The premium for the policy is collected in advance or monthly. As far as the coverage is concerned, it begins either immediately or on the date agreed by both parties.

These short term policies include property damages, bodily injuries, physical damage, as well as underinsured & uninsured motorists while some insurance may provide medical payments for the passengers. In most cases, the companies that offer these services charge a flat rate and usually these premiums are more affordable in comparison to a normal long term insurance. To grab more clients, some insurance firms offer additional services like roadside service. To cancel a policy, the holder must send a written request.

Another reason why people select these short term car insurances is because adding an additional driver to a regular policy is a little bit difficult and time consuming. In addition, if you do have the patience and time to add that driver to the policy, if he/she will get involved in an accident, you will lose the no claim bonuses and other related discounts, although it wasn’t your fault. The good thing is that these short term policies do not affect your regular policy in any way and they give you just about the same coverage as a normal one does.

Different companies offer different quotes and for this reason it is highly recommended that before heading down to the nearest insurance company you can find, you should do a little bit of comparison shopping before buying one. You would be surprised of the differences between the rates applied by various insurance providers. Just like for a normal long term car policy, these companies take into consideration various factors when deciding the rates, like driving record for example.

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