Hourly car insurance is not so popular with the insurance companies in the United States, although some of them offer the service.
Hourly car insurance is ideal only when you have an emergency to attend to, or when taking a trip with a friend’s car.
However, this coverage is not an alternative to the annual/traditional insurance coverage. Therefore, you will still need an additional policy.
It is against the law to drive a car in any of the states without the minimum liability insurance coverage. Enter your zip code into our free comparison tool to see how much you could save on coverage.
When do you need hourly insurance coverage?
An hourly insurance policy is cheaper than the annual coverage, and it helps you avoid paying for what you do not need. However, you will need a temporary insurance cover if you intend to use a car for more than the hours in your insurance policy.
Situations that require hourly car insurance include:
- Borrowing a friend’s car – you will need an insurance coverage for several hours if you are borrowing a car from a relative or a friend and they have not included you as the other driver in their insurance policy.
- Rentals – anyone renting a car for a couple of hours and does not have a rental car insurance coverage may consider getting an hourly car insurance policy.
- The purchase of a new car – it is illegal to drive a car on any roads in the United States without coverage whether it is a new or an old car. Purchase an insurance policy that would cover your vehicle while moving it from the point of purchase to your home before you acquire the annual coverage.
- Classic cars – you may require to blow off the cobwebs from your classic cars occasionally. In this case, an hourly insurance policy is the best coverage for the few hours you have on the roads.
- Moving to a new home – you may require relocating to another house without the help of moving companies. You will need insurance for the van you will be using.
- Test-driving – it is essential to obtain an insurance policy for a few hours which provides coverage when test-driving a car you intend to purchase.
- Emergencies – there are certain unplanned occurrences in everyday life that may require you to borrow a colleague’s or friend’s car. To cover yourself from the possibilities of an accident, you need an hourly insurance cover.
Factors that Help Determine the Rates
The car insurance companies use different factors to determine the premiums that a policyholder should pay in the few hours that they will have coverage. The age, vehicle model and the place of the residence are some of the factors that the companies use to determine the rates.
Auto policy coverage is available to anyone who has attained 21 years and above and has a clean driving record. Some insurance companies do not provide coverage to the at-risk drivers while others will.
It is important to compare the different insurance companies to get one that suits your needs.
It would take less than 10 minutes to complete the application process for the hourly insurance policies online or over the phone. Some of the details that the insurer would ask you include:
- Name and address
- The model of the car that requires insurance
- The date and time that you will require the coverage
- Information about your driving license and your previous driving history
The policies in the hourly insurance coverage are similar to those in the standard insurance cover. Policyholders are free to purchase the liability insurance and include the comprehensive and the collision coverage.
The hourly insurance cover is only cheap when it is a one-time plan. The rates may be as high as $10 for 24 hours.
When the Hourly Insurance Coverage Expires
You may get serious penalties for driving a car without the proper insurance or if the hourly insurance policy had expired.
You will need a temporary insurance cover if you had a car insurance policy that covers you for several hours but the time lapsed without completing the errands or returning home.
Other insurance covers that you may purchase include the non-owners insurance policy and pay as you go car insurance. The providers offer instant coverage to anyone under the hourly insurance coverage after an accident.
An insurance policy for a couple of hours is ideal for anyone driving another vehicle other than their private car. A policyholder with hourly insurance coverage drives with a peace of mind, therefore, reducing the chances of an accident.
You may think you are very careful while driving but remember there are other drivers on the public roads who may hit your car, so you may consider obtaining an insurance cover even if you are alternating driving with a car owner.