Free Insurance Guide

Short Term Auto Insurance After An Accident

It is no secret that insurance products are not particularly easy to understand. Not only are the terms and conditions overly detailed, but it seems that most agents barely understand some of the principles involved. Furthermore, there are a number of specialized insurance products, such as short term auto insurance, that not many people realize when and where to use it.

One such opportunity to use this type of specialized auto insurance is after an accident in which your vehicle was totaled. If you do determine to use this type of insurance after an accident, be sure that you get sufficient guidance from your insurance agent. During the period in which claims are being negotiated, you don’t want to make too many alterations to your existing policy terms. Changes will unnecessarily complicate the process and can lead to major problems between insurance companies.

The way that a short term car insurance policy would be beneficial after an accident is in the case of total loss of your vehicle. Once the insurance company deems your car a total loss, you quickly find yourself without a vehicle. For many this is simply not an option. Any degree of commuting quickly eliminates the ability to do without a vehicle.

If you have a rental car from the insurance company, you will likely find yourself required to return the vehicle as soon as the claim is fulfilled. By law, the insurance company is not required to provide a rental car after settlement.

The first option that you have after settlement is to continue to rent a car from the rental agency. If you are unable to continue your current permanent insurance, you may be required to purchase a temporary policy to insure the rental vehicle. This can allow you temporary coverage until you can find a replacement vehicle and reinsure it with a permanent insurance policy.