Temporary auto insurance has started gaining a lot of traction as of late. The idea of buying this type of insurance isn't new but has become more popular for people who don't drive enough to warrant buying a traditional car insurance policy. In Canada, not all insurance companies offer temporary auto insurance. For those that do, let's take a look at how this type of insurance works and why it's helpful.

How Temporary Auto Insurance Works

This type of car insurance traditionally offers the same type of coverage that one would expect to get from traditional auto insurance. This means that even with temporary insurance, a driver would never be left unprotected in the event that they were involved in some kind of accident. The biggest difference is how long the coverage lasts. Unlike traditional car insurance that can last for a year or longer, temporary insurance can last anywhere from one day to six months. Also unlike traditional car insurance, the temporary variety isn't renewed after the policy runs out.

What's the Price of Temporary Car Insurance?

Like a normal insurance policy, the price of a temporary car insurance is based on multiple factors. For example, the price will vary greatly depending on the type of coverage you want as well as the model of your car. It may also differ slightly depending on the area of Canada where you buy the car insurance. That being said, it's important for drivers to be aware that temporary car insurance is set up on a higher price scale than traditional insurance. While it may not stack up as favorably in price, drivers who don't drive frequently end up saving money because they're only paying for what they need.

Situations in Which Short-term Car Insurance Is Helpful

Temporary auto insurance isn't always the best choice, but it can work out in the driver's favor in a few situations. For example, people who are visiting Canada or the United States can opt for temporary insurance during their stay. It's also helpful for people who are in between insurance policies for whatever reason but still need to be out on the road. Temporary insurance can also be helpful when renting a car or when you have temporary ownership of a car. You may even consider temporary insurance for a car that you plan to sell soon.

Temporary car insurance isn't for everyone but can be helpful in certain situations. Keep in mind, however, that not all insurance providers in Canada carry temporary insurance. Talk to your current provider to find out if it offers temporary auto insurance, or check around for a company that does offer it.