Short Term Car Insurance Cover
Filed under: Uncategorized
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.
Short Term Car Insurance
Filed under: Uncategorized
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.