As a car owner, it’s almost certain that at one time or another, someone other than yourself will drive your vehicle. What happens if an accident occurs while the other person is behind the wheel? Will your car insurance cover the damages? If you wreck your rental car while on vacation, what will happen to your insurance rates? Let’s say you’ve just purchased a vehicle but are not an established customer, do you have any options for immediate car insurance?
Not everyone may be familiar with temporary auto insurance. The most common use of this service can be seen with auto rental agencies. Your regular insurance provider may cover certain circumstances when it comes to driving a rental vehicle, but what happens if the damages received outweigh what your insurance is willing to pay? This would be a good time to utilize the temporary auto insurance provided by the rental agency. Once your limits have been reached on your regular policy, the temporary insurance will cover what is left up to the limits you choose when you rent the car.
Another scenario that may call for temporary car insurance can occur if your friend is out of town for a month or two and agrees to let you drive his or her vehicle. Most insurance policies will cover the insured vehicle regardless of who is driving; however, the amount of coverage could differ greatly. Plus, if you wreck your friend’s vehicle, the accident could affect his or her premiums. Some insurance companies may offer you insurance that can be purchased one month at a time. The cost of such a convenience could be pretty hefty, sometimes double what an established customer would pay for one month of his or her insurance. Your other option in this case would be to buy a full year’s worth or a full six month’s worth of insurance and then be stuck paying for services you don’t use. Financially it makes more sense to purchase just one or two month’s worth of insurance coverage for $100 a month than to purchase six months of car insurance at $50; the latter option has you paying up to $200 more for coverage you won’t even use.
Your temporary auto insurance will also step in and cover repair bills that go above and beyond what your friend’s policy allows. If you wreck a borrowed car and the owner’s insurance only covers $2000 of a $5000, someone will be responsible for the remaining $3000. Rather than ruin a friendship by making your friend foot the bill or ruining your bank account coming up with the extra cash, you may want to be safer than sorry and get the temporary auto insurance coverage for as long as the vehicle is in your possession.
Many states require that you have insurance coverage at all times. Any lapse in coverage could cost you more money when you go to re-establish a policy. So if something happens to your vehicle that prevents you from driving it for a while, or something happens to you making it impossible for you to drive for a short period of time, go ahead and invest in some temporary auto insurance to keep you in good standing until you are driving again.
When could the use of temporary auto insurance not apply to you? If you are partaking in a night out on the town and hand your keys over to a valet driver, you may think that having extra insurance coverage would be beneficial should your car be damaged while in the valet driver’s care. In this case, the valet company has insurance to cover damages they are responsible for. Your insurance company will not even be charged in this scenario, which means that, in turn, you will not be penalized for the valet driver’s mistake.
If you purchase temporary auto insurance in hopes that it will alleviate any responsibility you would have if your vehicle is stolen, you could put that money towards something else. You are not responsible for accidents caused by persons driving your car without your permission. The driver’s insurance would be utilized in this situation. In the event that the driver of your vehicle does not have insurance, either the comprehensive or uninsured motorist portion of your insurance policy should cover the damages caused.
Temporary auto insurance may not be something you’d utilize on a daily basis. It won’t do any good if the hooligan down the street steals your car and goes for a joyride, or if the valet gets a little too close to the yellow pole while parking your vehicle. However, it is a good idea to get this type of insurance if you’re driving a rental car on vacation or perhaps need to rent a big truck for moving your belongings from one residence to the next. It also shows a lot of responsibility and forethought on your part if you get into an accident in a borrowed car and have insurance to cover the damages you’ve caused.
Tags: Auto Insurance, car insurance, temporary auto insurance, temporary auto insurance coverage
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