Can I get a car insurance policy temporarily for only part of a year?
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Asked August 8, 2014
Auto insurance has multiple policy billing methods. For many people, purchasing coverage on an annual basis works the best, but the actual coverage is available in 1, 3, 6 and 12 month policy lengths. Most companies default to a 6-month auto insurance plan, but you are able to request shorter lengths if desired.
One reason you might want to insure a vehicle for only part of the year is if you plan to be out of the country, or if you have the vehicle up for sale and do not expect to own it after a certain length of time. If you need to insure for only part of the year, you will need to notify the insurance company when the policy is purchased.
Bear in mind that insurance costs less when purchased for a longer term. It would not be unusual to pay as much for a 3 month policy as you do for an annual plan because the insurance company has to recoup a certain amount of the risk cost regardless of the length of time the vehicle is insured. If all plans had the same costs, the insurer would risk having to pay out as much on a short term policy and would eventually have to charge higher rates for everyone to make up for the losses.
Another way to insure a vehicle you do not drive on a regular basis is to purchase pay by mile insurance. This type of car insurance uses rates based entirely on your actual mileage, using a small device that is installed in your vehicle to track your actual mileage. This is similar to the Snapshot insurance offered by progressive, but does not track your driving habits; only the miles you use the car.
Finally, cars that are only driven on special occasions may qualify for pleasure craft coverage. This type of auto insurance is designed for classic and collectible vehicles, but is also useful for a car or truck that is only used, for example, for family vacations or to transport specialized things such as a boat or camper trailer.
Answered August 8, 2014 by Anonymous