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Getting Temporary Car Insurance for Permanent Drivers

By itself auto insurance is confusing enough for many people. Throwing in a wrinkle like temporary car insurance may be a bit much. But relax, temporary car insurance is quite specialized and really isn’t that scary.

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As the name implies, temporary auto insurance is a policy designed to be in force for a short period of time and for a certain occasion. Terms for policies are usually measured in days or weeks. Temporary car insurance shouldn’t be confused with things like non-owned auto insurance, which is a full-term auto insurance policy that covers a driver instead of a vehicle.

Temporary Car Insurance for Rentals

Although there are other uses for it, the most common application of temporary car insurance is in a rental situation. Rental temporary auto insurance is not true car insurance as much as it is an agreement between you and the rental company for that company to reimburse you for damages. It’s an added charge to your rental and always presented as an upsell.

Many insurance companies will automatically cover you at least partially in a rental car as long as you stay in the United States or Canada. Temporary car insurance offered by the rental company may pick up the slack, or may be completely unnecessary.

If you plan to rent a car in the near future and are unsure of your coverage, consult with your insurance agent before renting. It could save you quite a bit in unnecessary rental car charges. If you do rent, plan on an extra $6 to $12 a day in rental charges – not cheap if you annualize that premium.

If you’re driving in any other country, however, you want to seriously consider taking the rental company’s temporary car insurance. Apart from Canada, most American auto insurance policies exclude international coverage in general and coverage in Mexico in particular. The chances are very good indeed your car insurance back home won’t be there when you get off that international flight. That rental auto insurance may be the only thing between you and an unfortunate international incident should you get in an accident.

Temporary Car Insurance in Mexico

Another common application of temporary car insurance involves driving south of the border, even if it’s your own car. Unlike in Canada, where your local auto insurance policy is valid and generally recognized by local authorities, legally driving in Mexico carries an entirely different set of requirements.

American insurance companies don’t do business in Mexico or sell Mexican auto insurance. You will have to strike out on your own to get the coverage you need.

Temporary Mexican car insurance may be available through your agent by way of an insurance brokerage, online, or through an agency based close to the border. When purchasing temporary auto insurance for use in Mexico – and especially when dealing with agents or firms you don’t know – be sure you’re actually getting Mexican auto insurance. Also be sure you’re not paying too much.

There are several reputable Mexican insurance companies to choose from including ACE Seguros, HDI Seguros, Grupo Nacional Provincial and others. Don’t be afraid to do some research on these companies as many have A. M. Best ratings for financial security just like their American counterparts. “Seguros,” incidentally, is Spanish for “insurance.”

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