Uses of Short Term Insurance

There are a large number of auto Insurance products available in the market today. The choice you make while selecting auto Insurance is related to your circumstances. One such type of Insurance product is Short Term Insurance. Short Term Insurance is sometimes referred to as temporary Insurance as well. Short Term auto Insurance provides you with protection for a short period of time.

Short Term Insurance becomes necessary to fill in holes when you are searching for the right long term Insurance or when your Insurance requirement is only for a limited period of time. In case you are caught driving without Insurance, you are liable to be fined 200 and a six point penalty on your license. So it becomes unwise to be driving without an appropriate Insurance.

Fundamentals of Short Term Insurance

Short Term Insurance is for varied period of time between 1 to 28 days. Some companies can offer it for extended time as well. Drivers can purchase temporary Insurance on another vehicle without risking the no-claims bonus.

Short Term Insurance being a comprehensive policy covers everything from third party liability to damage to the vehicle. In some cases it covers injury to driver as well. For Short Term Insurance, the driver needs to pay a premium and excesses in case of accidents. There is generally a wait period of 15 days before a driver can again purchase a Short Term Insurance.

Uses of Short Term Insurance

Different people require Short Term Insurance for different needs. Some uses it for personal reasons while others for meeting emergencies. We will look at some Uses of Short Term Insurance below:

Personal Use: Temporary Insurance can be required for different personal uses. If you use public transport and don't own a car, you will need a Short Term Insurance while hiring a car. When hiring a larger van to drive with your family for vacation or camping you need temporary Insurance to secure yourself. When you car is out for repair and you are using the company courtesy car, you need it. Another reason could be while driving your new car home while you haven't purchased the long term Insurance cover.

Business Use:If you own a business and need to deliver goods in a hired van, you need Short Term Insurance. Short Term Insurance is beneficial for your additional driver who drives your business van rather than adding him to your regular Insurance policy. Some other uses can be when you are shifting home or furniture. The list of business uses is exhaustive.

Other Uses: You can purchase Short Term Insurance for your friend when he borrows your car and feel relaxed. Short Term Insurance is useful when some overseas friend visits you and you allow him to drive your car. Another reason could be when your children visit you. Short Term Insurance will save you money here rather than you adding him/her to your auto Insurance policy.

In short, Short Term Insurance becomes necessary to comply with law and for your own protection.