Short Term Insurance: The Basics

Short term insurance is a type of general insurance that offers you financial protection through a policy designed to cover a short period of time. This time period ranges from one to twenty eight days.

With a short term insurance policy you protect yourself against loss of your belongings and the need to pay for replacement out of your own pocket should something happen to them. The insurance company will carry the risk in exchange for the premium you pay.

Short term insurance is purchased when insurance is needed only temporarily and a regular insurance party will not be needed. The deductibles will vary depending on the type of short term insurance.

Lets’ look at the main types of short term insurance.

Auto Short Term Insurance

With an auto short term insurance policy you are able to get temporary coverage for a vehicle you don’t own but will be driving, or for a driver that’s not normally driving your vehicle.

You can also use this type of policy if you will be driving the vehicle for a short period of time or if you’ve just purchased a vehicle and need instant coverage until you can get your regular policy enacted.

Health Short Term Insurance

Health short term insurance if you do not have enough money to pay the premiums associated with permanent health insurance. This type of insurance is very useful if you’ve been laid of and are in between employers, if you’ve graduated and are looking for work, if you are waiting for your employer insurance to become effective, or if you are in a temporary position where you do not have a regular income.

Short Term Home Insurance

Short term home insurance can be beneficial in certain situations. Perhaps your permanent home insurance policy expires shortly before possession on a house sale, or it may be necessary in the interim if you have to carry insurance on two properties during a purchase.

There are also instances where you may need to increase your home insurance like when you are doing construction, or have a temporary guest that has brought along expensive musical equipment or something not covered by your regular policy.

When you purchase short term insurance you need to know the conditions that apply to the policy. If these conditions aren’t met your claim may be denied. Know the conditions and the exclusions of the policy.

Short term insurance offers you insurance for a specified short period of time at a reduced rate, instantly.


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