Short-term car insurance is defined as a car insurance policy that covers you from one day to 28 days. You’ll find many situations that may require the driver or the owner of a car to obtain a short-term policy. If someone borrows your car for any reason, you may need to purchase short-term insurance, depending on the state you live in and the type of policy you have (some insurance follows the driver, some follows the car). When you get a short-term policy, it should be separate from your existing car insurance to protect your premium and it should cover the same risks that your existing insurance policy covers.
# 1 – DETERMINING IF YOU NEED COVERAGE
Get coverage details if you lend your car to another driver. Nearly all states require cars and drivers to carry insurance. Talk to your insurance carrier about what your insurance policy covers and, more importantly, what it does not cover.
- Coverage when borrowing or lending a vehicle may vary depending on the state and the policy. It is important to clarify exclusions, or what specifically is not covered by your insurance.
- If you have liability coverage, this usually means you are insured when you operate a vehicle even if it is owned by another party.
- If you have comprehensive and collision insurance, this follows the car and protects it against damage from accidents or vandalism. It may not, however, cover the person who is driving the car if he or she is not the owner.
- Ask your insurance agent if permissive use is covered by the liability terms of your policy, or whether or not other drivers will be covered by your policy if you allow them to drive your car.
- You may lend your car to someone when an emergency occurs. A friend or family member may need to drive your car and this should be covered under your insurance policy.
- Short-term car insurance covers you when someone borrows your car and has an accident. If you borrow someone else’s car, you should also have this insurance in place to protect yourself as you drive.
- A driver should insure their car when a child is home from college and is using the car for a short time.
- If you have a student driver who is using your car, you may need short-term insurance.
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