Annual car insurance is by far the most common, it is what people usually buy. With this type of insurance you renew your plan once a year and pay premiums either monthly or quarterly. Sometimes annual car insurance is too restrictive in terms of duration, many times people need to buy insurance for much less time, these plans are called “short term auto insurance.”

You can pay for short term auto insurance with the kind of insurance plan that yearly insurance provides. Short term car insurance can be purchased with a comprehensive policy including medical expenses, or as uncomplicated basic coverage. The price difference for short term auto insurance is small, Although many insurance organizations will require the full premium be paid upfront rather than in monthly or quarterly installments.

photo credit: dave_7

The point for purchasing short term car insurance might vary. a couple of examples of cases where a short term plan might be more suitable than a yearly one include: visiting the US from a foreign country, renting a motor vehicle, or to protect your car in case of seasonal weather damage.