Temporary Car Insurance and Pay As You Go Plans

It is becoming increasingly common for car insurance companies to offer short term car insurance options for customers who are not interested in a regular car insurance policy. If you are in a situation where you want to save money on car insurance by only purchasing it for limited time or certain circumstances, then you can get a quote for temporary car insurance or a mileage based plan.

TIP: When shopping for short term car insurance, you should shop as you would for normal car insurance: explore several companies, compare car insurance quotes, and take advantage of any car insurance discounts that are available to you.

Temporary Car Insurance

Temporary car insurance can be a good option for individuals who only plan on driving a particular vehicle for a short period of time. Temporary car insurance plans typically last anywhere from 1 – 6 months, and will usually provide the minimum liability coverage required to keep your vehicle on the road over the course of the policy. There are a number of situations where temporary car insurance may be helpful:

• You plan on quickly selling the vehicle
• You are borrowing someone’s car for an extended period of time
• Someone else is temporarily driving your car
• You just purchased a car and haven’t sorted out the insurance details yet
• Your financial future is uncertain and you cannot commit to a long term insurance contract

Temporary car insurance is a good solution when you need insurance to drive, but do not have a definite long term plan for the vehicle, or don’t intend to have the vehicle for long. You can get temporary auto insurance quotes from several insurance companies.

TIP: Temporary car insurance is only a money saving technique if you are not committed to paying for the insurance for a long period of time. If you plan on insuring your car for a long time, then temporary car insurance is the more expensive option as it will likely carry higher rates for less coverage.

Pay As You Go Car Insurance

Pay as you go car insurance can be an ideal policy for a driver looking to save money who doesn’t need to drive their vehicle regularly. Pay as you go insurance offers what is essentially a mileage discount by charging an insurance rate based on how many miles the car is driven. This is accomplished by placing a small device in your car that tracks your mileage, what time of day you are driving, and how often you slam on the brakes. The device is not a GPS, and cannot track your location. Rather, it is designed to track your distance and identify times when you may be engaged in high risk driving (sudden stops or late night driving) and charge you insurance rates accordingly.

Pay as you go car insurance is not a money saving technique for every person. It is ideal for people who drive under 12,000 – 15,000 miles a year such as:

• Someone in an urban area who uses public transportation
• Retirees who only make short trips
• People who work from home, or do not work that only use the car for errands or short trips
• People who have a secondary car that they would like to insure
• Young drivers who want to save some money on car insurance

Your car insurance company may not offer pay as you go insurance. If you feel that this type of insurance is right for you, you may be able to cancel your auto insurance policy and shop for a new pay as you go car insurance plan.

To find the right car insurance policy for your driving needs and budget, click here to use the Free Advice quote center.

For more information about getting the right car insurance policy to fit your needs, check out the following articles:

Click Here for a FREE car insurance quote today!

What Is Car Insurance and Why Should I Buy It?

Save Money When Buying Car Insurance with Online Quotes

Car Insurance Driver Discounts

Basic Types of Auto Insurance Coverage

What to Know About Car Insurance Agents Before You Buy

How to Fill Out an Online Car Insurance Quote

How Insurance Companies Calculate Your Car Insurance Rate
More Articles To Help You Save Money On Car Insurance

Case Studies: Temporary Car Insurance and Pay as You Go Plans

Case Study 1: The Short-Term Driver

Sarah, a college student, is home for the summer and needs temporary car insurance for her father’s car. She plans to use the vehicle for three months while she works in her hometown. Instead of committing to a full year of coverage, Sarah opts for a temporary car insurance policy that provides liability coverage for the specified duration. By doing so, she saves money and avoids the expense of a standard annual insurance plan that she won’t need once she returns to college.

Case Study 2: The Low-Mileage Commuter

John is a city dweller who rarely uses his car for daily commuting. He primarily relies on public transportation but occasionally drives his vehicle on weekends for leisure trips. Recognizing that he drives under 12,000 miles a year, John chooses a pay-as-you-go car insurance plan. The plan utilizes a mileage tracking device to determine his insurance rate based on actual mileage. As a result, John enjoys lower insurance premiums tailored to his driving habits, ensuring he pays only for the coverage he uses.

Case Study 3: The Seasonal Driver

Mark owns a classic car that he only drives during the summer months. For the rest of the year, the car remains stored in his garage. Rather than maintaining continuous coverage, Mark selects temporary car insurance that covers his vehicle exclusively during the summer season. This approach allows him to protect his prized possession while saving on insurance costs during the off-season.