Major auto insurance companies are reiterating offers of temporary car insurance for car owners looking with specialized insurance needs. To help combat the economic recession hitting the U.S., providers are starting to offer special insurance policies for short-term periods.
Most states allow insurers to provide clients and policyholders temporary insurance coverage for special cases. According to experts, any coverage lasting for less than a year can be considered temporary. Typically, they say, the coverage period for this type of insurance lasts anywhere from one to 28 days.
Because of the harsh economic situation, more and more Americans are turning to temporary car insurance to weather the economic storm. In fact, insurance agents have noticed an increase in the number of car owners signing up for temporary insurance.
Experts contend that there are various reasons why car owners prefer temporary insurance to conventional policies. Some motorists simply choose not to drive for certain periods during a year. Temporary insurance gives them the ability to take their vehicles on the road and not pay for a whole year’s worth of coverage.
Businesses that involve seasonal use of specialized vehicles often purchase temporary auto insurance. Owners of snow clearing vehicles used primarily during winter can also opt for this particular insurance type. This way, they can avoid expensive annual insurance.
Industry specialists have also noted the many benefits of temporary car insurance. According to them, policies can offer cash coverage for liability or comprehensive coverage. Policyholders can also opt for temporary breakdown coverage in the event that their cars need lengthy repairs.
Having temporary car insurance is also significantly less expensive than full coverage. Because car owners only have to pay for a limited period of coverage, their insurance expenses are slashed substantially.
The car owner also has the ability to choose the time and period of the coverage. On top of that, this specific policy is also easier to obtain than regular insurance. Specialists also contend that motorists only have to pay for the period of time they use their cars. They can also avail of the temporary coverage much quicker than ordinary insurance.
Temporary car insurance offers car owners the flexibility they need without sacrificing the protection offered by regular insurance. Industry sources agree that in some cases, this particular policy is often the best choice. First time car owners can also make use of this coverage especially if their newly purchased vehicles are not covered by insurance.