Almost every state has some type of law that requires every automobile to carry some type of insurance. Whether the car is in use or not an insurance policy must cover the car against accidents or theft. Many people believe there is a type of insurance known as temporary car insurance but the truth is in the United States no such policy exists.
Temporary or short-term car insurance is a very popular concept throughout many European nations but has yet to catch on in the United States. This can be difficult for people who only want to drive a car for a short period of time or have a car that will not be in use for a few months. The car by law needs to be insured by a car insurance company but most companies only quote for the year or a specific block of time.
If you have found yourself stuck in a situation where you are in need of some temporary car insurance, here’s a look at some options that might be available to you depending upon your situation.
Adding Cars to Existing Policies
Many car insurance companies will allow you to add a car temporarily to an existing policy. Adding the car to your policy will increase your insurance rates but it will give you the insurance coverage you need to be protected by law.
There are two potential problems with pursuing this option for temporary insurance. The first problem is you need to have an existing policy with the insurance company that is offering the add-on option. Your policy must also be in good standing meaning that your account is up to date.
The second potential problem is not all car insurance companies offer the add-on option for cars. Some insurance companies will insist that every car must have a separate policy. This requires you to open up a new policy for every car you need covered. Sometimes an individual car insurance policy can cost more than just adding the car to an existing policy.
Create a Policy and Cancel at Later Date
Car insurance companies will sometimes draw up agreements that look like you are agreeing to stay with that particular company for a definite period of time. When the insurance agreement is drawn up like this it will require you to pay for six months or a year, depending upon how long the policy is in effect.
This can present a problem for people who are looking for short-term policies as they feel stuck in the existing policy for the agreed upon time frame. However, according to the law you are allowed to cancel your car policy whenever you want and can have any outstanding balancing on your account refunded to you.
This option allows you to have your car insured for the four months that you need it insured and then have the policy cancelled with all your money returned to you.
While there is no insurance policy in the United States called temporary car insurance, you can use these methods to get your car insured for the short time frame that you need.