Why You Need Short Term Car Insurance When Traveling to Other States

Car insurance is a risk distributing device wherein a person insures the car against the risk of damage, loss or liability for the acts and omission of the operator or for certain allied risks usually befalling automobiles. The agreement is initiated and limited by the car owner or operator by payment of fees and premiums to the insurer or to the owner of the automobile. The payment will be placed in a common fund to answer for risks covered by the contract. If the risk occurs then the common fund answers for the same, if it does not then the fee is forfeited for use of the common fund.

Car insurance is required by federal and state laws. Driving without insurance can cause the revocation of your license or worst, it can subject you to liability worth thousands of dollars, for something that could have been covered by a few hundred dollars a month. There are many different types of insurance in terms of coverage. However this article will focus on the type of insurance in terms of period of coverage.

Long Term Insurance vs. Short Term Insurance

The former is the usual type of automobile insurance in the United States, it involves taking out an insurance policy for 6 months or more while the latter is relatively new in the U.S., albeit widely used in European countries, it involves a policy that is generally less than 28 days long but is known to be as long as less than 6 months. Long term insurance is usually taken by the car owner within the state that he or she resides while short term insurance is taken by renters or owners who will be using their automobile out of state.

Insurance Coverage

Insurance coverage means coverage on all states. However short term insurance is usually taken by owners when going out of state because of the different conditions, hazards as well as operators during long interstate rides. Below are a few examples:

1. Additional coverage: If you live in Florida or any state that does not experience snow storms or hailstorms then chances are you do not have snow related coverage. When travelling to a state, especially in a season when snow is a definite hazard then it would be best to contact your insurer to add coverage for a period of time you expect to be within the scope of the risk.

2. Other Operators: Automobile insurance usually covers the use by family members not relatives. When lending the automobile to relatives or friends it would be best to add them as authorized and insured operators, especially in travels out of state where driver rotation and is expected.

3. Increased Amount of Coverage: For example, you only park your car inside your garage or inside a secured pay parking facility. However when travelling out of state you expect to park just outside your relatives apartment in the big city. Then you might want to increase the amount of coverage of the automobile just in case it is car jacked or you might want to inform your insurer, if there is a clause that specifically limits the type of parking you will be using. Otherwise you run the risk of not getting the insurance coverage or getting short changed by your insurer.

4. Long Hauls/Night Driving: Travelling out of state usually involves long hauls and driver rotation and chances are you will be driving at night. This means an increased risk on your part in meeting an accident or an untoward incident. It is only prudent to increase your coverage or the amount of coverage temporarily in order to account for the increased risk you are taking when travelling out of state in unfamiliar territory.

In Closing

In theory automobile insurance is taken to coincide with the amount of risk the automobile will be subjected to based on your day to day activities. Short term car insurance however is a means by which the coverage amount will be increased or added upon in case the automobile is used other than by the usual operator or under conditions that are not similar to the day to day activities considered under the insurance policy. Basically this type of insurance is a means of preserving the status quo when conditions of use differ temporarily.