Many auto insurance policies are still sold on an annual basis. As during a 12 month period the needs of drivers may change, short term insurance can now be secured potentially providing a better value and more flexible solution.
Temp insurance in most parts of the world is defined as a short term auto insurance policy lasting from 24 hours to twenty eight days. However, there are now a number of specialist insurance companies who offer flexible cover for between one to six months.
Highly flexible cover can now be provided for drivers on a pay as you go basis. This gives the option of not having to pay for insurance when it will not be required.
One can think of many reasons where drivers may take out a temporary car insurance policy. One of the most popular is making sure you are protected when borrowing a friends car. Taking out an extra policy for this could protect any no claims bonus acquired. This could therefore be an attractive option for more experienced drivers.
Another reason short term automobile insurance is taken out is to provide cover for an additional driver so driving can be shared on a longer trip or vacation.
Insuring an overseas guest while they are over here is a common reason. As is requiring short term car insurance when buying a new auto and needing to take it home. Taking a test drive and requiring insurance for a day can be another reason.
Many drivers of vans will either be hiring or borrowing the vehicle. This can be where 1 day insurance is appropriate, when you are borrowing a van for differing situations.
For those bikers that are planning a summer road trip or perhaps attending a biking convention or meet-up, short term car insurance could be a solution. This may prove economical if they will only be riding while they are away.