As a general rule, car insurance policies are usually available for six-month or 12-month terms. These policies provide coverage for several incidents that result in bodily injury or property damage. However, if you require temporary coverage, weekly car insurance is offered in some locations for up to six months. It’s not available everywhere, though, and could end up costing more than a standard six-month policy.
Weekly car insurance is a relatively new coverage option in the United States created for short-term coverage needs. In many cases, this kind of insurance coverage is ideal for those who need to borrow or rent a vehicle for a short period of time. Usually, people seeking this coverage are on vacation, have out-of-town visitors, or have a college student home for winter or spring break. While weekly car insurance might seem like the best option, it can be very expensive and hard to find.
The cost of one-week insurance policies can vary by company and coverage limits. The average cost of temporary auto insurance is between $10 to $25 each day and will depend on the type of vehicle and the miles driven. To find the best rates, you’ll want to comparison shop just as you would for any other type of coverage. Most people prefer short-term car insurance to coverage through a rental car company, as it is usually cheaper. Let’s take a closer look at weekly car insurance.
The most important thing to consider when looking for temporary coverage or permanent insurance is coverage. You’ll want to make sure that you have enough coverage to meet the minimum legal requirements. Most states have minimum liability coverage requirements. Liability insurance provides coverage for personal injury and property damage claims made by other drivers if you are at fault for an accident. It doesn’t cover you or your car as a result of an accident that you caused. For full coverage protection, no matter who is at fault, you will need collision and comprehensive coverage. When browsing for short-term car insurance, you’ll want to ensure that you have at least the legal amount of required insurance.
When purchasing a temporary policy, you will notice that the coverage options are fairly similar between weekly plans and long-term policies. Most temporary insurance plans allow you to add liability coverage, bodily injury, and other coverages usually included in traditional policies.
Weekly car insurance can be beneficial in some situations where it makes sense. However, it is not without its limitations and exclusions. One of the most significant drawbacks of a short-term policy is the age restrictions. In general, most insurers will not offer weekly coverage to anyone under the age of 21. Some insurers go even further and require that policyholders be at least 25 years old. Insurers are careful to consider age when issuing temporary policies to mitigate as many of their risks as possible.
Another significant limitation with weekly car insurance is price. Even though these policies provide coverage for a short time, the premium rates might not be very cost-effective. As discussed, the daily rate for many of these policies ranges from $10 to $25. If you require coverage for two weeks, it could cost as much as $350. By comparison, the average cost of insurance in the U.S. is around $1,600 per year. For a 12-month policy, policyholders pay about $134 per month. If you are considering temporary insurance, you should weigh the costs versus a six-month or 12-month policy.
If you need insurance coverage, you’ll want to do some research to ensure that you get the right policy and coverage for your needs. The best solution is to compare quotes and policies to optimize savings for either short-term insurance or a traditional policy.