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Reader’s Question:

I am just borrowing a friend’s car for a few days for a vacation trip but people constantly remind me that I need car insurance for it. Is there something like a cheap short term car insurance available for my case here in Texas?

Cindy

Houston TX

Many people thought that car insurance policies will only provide coverage for at least 6 months to a year. However, there are policies that can cover you for a few days, depending on how long you’ll drive the car. This is called short term car insurance, which is also known as temporary car insurance.

Short term car insurance is recommended to those who are renting or borrowing a car from a friend and for those who are have just bought their new car and needed to drive while still unable to find a good annual car insurance policy. If you are lending a car to a friend or if you need to add a temporary driver, purchasing a short term car insurance is recommended. In this way, when your friend or the additional driver gets into an accident with your car, claims will not be taken against your personal car insurance policy but against the short term car insurance.

By purchasing short term car insurance before you drive your car, you are also saving yourself the financial trouble in case you will get into an accident with the car. With this type of insurance policy, you don’t have to pay for the medical costs that the other parties incurred and for property damages made to their cars during the accident.

You can find cheap short term car insurance in Texas by approaching your nearest car insurance companies specializing on short term policies. These are the car insurance companies that has found a niche in providing short term insurance policies to people who uses cars on a temporary basis. The Internet can also direct you to car insurance companies that can provide you with cheap short term car insurance policies. Doing your search through the Internet can further save you time, money and energy.

A cheap short term car insurance do not need to be permanently part of an insurance policy. Take note however that short term car insurance policies are only good for a few days or a month only. If you plan to constantly use a car to drive, it may be more cost-effective to get an annual policy.

Reader’s Question:

I am skeptical about getting short term insurance for our car because we might be shortchanged. But we will be disposing our car in a month or 2 once I get my service car that comes with my promotion from my company. What short term car insurance cover can give?

Keith

Portland OR

Congratulations on your promotion and your coming new car. As it name suggests, short term car insurance cover can be only for a short limited period of time. Short term car insurance works similar to the traditional regular car insurance only that the coverage period is limited. Depending with the insurance provider, one can get as short as 1 day to a maximum of 6 months of insurance coverage. You need to check with insurance company regarding the minimum and maximum length of coverage because there might be differences.

Some people are hesitant of getting this kind of insurance because they feel they’re being shortchanged. But actually, you are not because you only pay for the days you want to be covered. Insurers usually charge flat rate for a short term car insurance cover. If you and your car are candidate for a high insurance premium, the short term insurance might come less expensive to you because of its flat rate.
The coverage in traditional regular car insurance is also found in the short term policies. This short term car insurance cover includes the following:

Bodily Injury Liability

This provides coverage to people who are hit or physically injured by the insured car.

Property Damage Liability

This answers the property damages caused by the insured car.

Medical Payments Liability

This covers the medical expenses of the policy holder and his or her passengers who were injured in the car accident.

Uninsured Motorist Liability

This gives you coverage when you are a victim in a car accident caused by another motorist who has not enough or no insurance at all to give you protection.

The coverage may differ from one car insurance company to another, so you better inquire for the full coverage details from the insurer before making a decision. So, basically, you get nothing to lose if you get a short term car insurance coverage.

Reader’s Question:

Is there such a thing as one day car insurance?

Richard

Chicago IL

Most of the insurers provide coverage for 6 months or 1 year terms. Typically you make a down payment then make payments each month. Usually the down payment will be 25% of the policy premium cost.

You can buy the shortest term that is offered to you by the insurer then just cancel it. In most cases, you have to make this request in writing. You may also be needing some information. Some insurance companies has a set up for pro rate cancellation of your policy.

You may also be required to provide proof (if you sold the car, or destroyed the car) for you to be able to have it cancelled.

Basically, I know no car insurance companies that offer one day car insurance. The shortest available term is six months. However, you can always cancel your car insurance policy. You can still ask car insurance companies if they can offer you one day car insurance or even one month car insurance.

Reader’s Question:

I have a son coming home from college and he’ll be staying for a while. Should I add him right away into our car insurance policy or is there any other way?

Matilda

Cleveland, OH

It’s a concern for parents who have son or daughter returning home from college or universities and asking for consent to borrow their car. Why? In most cases, parents will just add them to their policy and that’s where the concern gets in. It will probably cost time and effort and of course, the insurance premium will increase. The worst part is, there is a chance that their son will get into an accident and their no-claims discount will get tainted. As a result, they have to look forward into paying an increased insurance premium once they renew their contract.

But worry not; nowadays you can purchase a short term insurance cover for your kids. It will basically work as a temporary coverage for your son and it can provide cover for at least 4 weeks, or until your son is using your car temporarily.

The short term car insurance cover will protect the car owners’ policy so as not to affect its no-claim bonus and there will be no changes made on its ongoing insurance rate.

However, most insurance company has a strict limitation before anyone can avail the short term insurance coverage. First is, the license of the driver must have been had for more than a year. Second, only drivers who are 21 years of age are eligible. So if you think your son or daughter is not eligible, you are still forced to add him/her on your insurance policy.

Reader’s Question:

Is there a car insurance policy that will only give cover for a few weeks or less than a month?

Tony

Dallas, TX

Most people think that purchasing car insurance requires you to have a contract with your insurer for a minimum of one year. Well not anymore, there is a so called short term car insurance. This kind of insurance can provide a great solution if you have a friend or relative coming over and lending your car to him for a short amount of time. The idea behind short term car insurance is plain and simple because it will basically protect the car owner so the no claims bonus will still be intact. The coverage and policy of the driver behind the vehicle will take effect rather than the car owner. So in other words, there is less a problem or risk on the car owners’ side if an accident happens.

Another advantage of short term car insurance is it is much faster to transact compared to adding a driver to the car owners’ policy. If however you need this type of car insurance, be sure to check how long the insurance policy will last since most companies offer on less than a month. Be sure you can also renew the policy after the end of the contract since there are times you might need to extend it.

Reader’s Question:

Do I need to buy short term car insurance coverage for my friend who will borrow my car for a number of days?

Pearl

Nashville, TN

Yes, in this matter, if your friend does not have his own car insurance policy, then it would be better to obtain short term car insurance coverage just to be on the safe side. Although he may be covered under your car’s coverage, if he gets into an accident, then the claims will be put against your own car insurance record. And this will be very bad for you especially if you are enjoying the no-claims bonus from your insurer.

This is exactly one of the situations that have led car insurance companies to come up with short term car insurance coverage for their customers. This type of coverage provides insurance to additional temporary drivers and can cover even an overseas visitor. It can also give much needed financial protection for additional cars that you will be driving temporarily. This can even be obtained if you have just bought a car, so that you can immediately drive home the vehicle. Just be reminded that this type of insurance requires the driver to have a full and valid license. And in most cases, the driver has to be 24 years old or older before he or she can be allowed to buy this coverage. Speak with your car insurance agent about this just to be sure of the rules and regulations regarding short term car insurance coverage.

Reader’s Question:

Will a Texas driver’s license be honored in Mexico? Will I need to purchase short term car insurance just in case I get into an accident in that country?

Cassandra

Houston, TX

Your Texas driver’s license will be recognized in Mexico. However, your current US car insurance won’t be. You then have to purchase separate Mexico short term car insurance, just long enough to cover you during your stay. This can be done prior to crossing over to Mexico.

There are a number of car insurance companies in Texas that actually sell Mexico insurance. You may also buy from Mexico border towns or cities. If you do not have Mexico car insurance and are held liable for a traffic accident there, the police could put you in jail until they are able to establish your capacity to pay for the damages sustained. If there were serious injuries, fatalities and/or considerable damage to public and/or private property, the Mexican government may file criminal charges against you. It is also important to note that Mexican law enforcement authorities typically jail individuals involved in any road accident until they determine who is to be held accountable for the accident. Driving while intoxicated in this country is prohibited, so be sure to remember that.

If you will be renting a vehicle, it would be best to obtain minimum liability insurance coverage similar to what you have in Texas since most Mexico car rental liability insurance have very low coverage and may not be enough to cover for medical and repair costs resulting from an accident where you were determined to be at fault. Also highly advisable to obtain is collision and comprehensive coverage for the rental vehicle, so that you won’t have to foot the bill for any damages sustained by the rented vehicle. These types of coverage may or may not be included in a Mexican short term car insurance policy, so if you have to choose go with one that has minimum liability.

Reader’s Question:

Can a California driver’s license be used outside the country? Will my car insurance coverage take effect abroad, as well?

Elizabeth

Los Angeles, CA

Having a California driver’s license does not really give you the privilege to drive in public roads outside the United States. If you plan on driving in another country, you should obtain an International Driving Permit (IDP) before you leave. Remember to get your IDP from legitimate agencies. Only the American Automobile Touring Alliance (AATA) and the American Automobile Association (AAA) are authorized to issue IDPs in America. Always bear this in mind as there are a lot of illegal and unscrupulous entities out there looking to rip off over-eager tourists.

Regarding your car insurance concern, your current insurance coverage may not cover you abroad. This is only typically allowed when driving in countries neighboring America. But inquire from your car insurance agent, anyway. You may also want to ask if there are any possible programs you may avail of to have your coverage be temporarily suspended without having a dangerous insurance gap while you are out of the country. If you will not be covered in other countries, your options would be to obtain short-term non-owners insurance policy in the country you are visiting. If you will be renting cars abroad, you may also obtain car rental insurance from the same company that provides the rental car service.