When it comes to insurance, there are two main types- long term or life insurance and short term or catastrophic coverage. Life insurance is typically very expensive, which is why most people do not have much of it.
Short term insurance covers things like health insurance, car insurance, homeowners’ insurance, etc. It usually has you choose how long you want to keep the policy for, and your premium will remain consistent regardless of how many years you have the policy.
This article will talk about some examples of short term truck insurance. You do not need long term vehicle insurance with these policies, only liability coverage!
Something important to know about short term truck insurance is that they can be more affordable than traditional auto insurance. This is because they don’t require you to carry medical coverage (often times you’re able to get basic healthcare through your employer), nor do they require you to have renters’ or home owners’ insurance.
I’ve gathered several tips here for you to consider if you are looking to save money by switching to short term truck insurance. These include finding lower cost alternatives to theft protection, limiting unnecessary addons, and comparing costs across companies.
What does it cover?
Most short term truck insurance policies do not cover regular car or motorcycle owners to understand what these products really are. They may call this additional coverage personal liability, but that is only because they are too vague!
Most people consider themselves very safe drivers, which is why most standard vehicle policies already include limited liability for others in case of accidents. This is usually referred to as “personal injury” liability.
But personal injury liability ends at the person who is injured. It does not apply to any other claims made by anyone else due to injuries caused by you. For example, if someone sues you for medical expenses resulting from an accident with your car, your auto policy would pay for them, but it would not protect you from having to also pay their legal fees and costs.
This can easily add up — quickly! Because even small amounts of money spent defending yourself in court will eat away at your savings, and could empty your bank account. That is why it is important to have adequate personal liability limits for trucks.
Who should get short term truck insurance?
It is totally acceptable to purchase short term vehicle insurance, also known as lite policy or t-policy coverage. Companies that offer this type of policy are not required to be licensed in your state, nor do they have to adhere to the same guidelines for underwriting, so it is important to know what types of coverages you have and who offers them before choosing one over the other.
It is very common to find short term policies marketed towards young drivers or people with lower limits. Many times these policies will not include liability coverage, only collision and comprehensive protection. This can sometimes be a good thing if you think you will stay within budgeted limits, but we always recommend at least having personal injury coverage.
By having this minimum level of coverage, you still give yourself some protection in case something happens to your car. You may feel confident about your choice of coverage, however someone else might not!
It’s best to do your research before buying a short term policy to make sure you aren’t leaving yourself exposed.
How can I get short term truck insurance?
There are many ways to obtain short term vehicle coverage.
Are there differences in short term truck insurance?
There are several types of coverage that can be included in long-term truck insurance policies, but some companies tend to combine them into a policy with limited duration (usually one year). These coverages include:
* Physical damage only insurance
* Theft protection or vehicle theft insurance
* Loss of use coverage for vehicles with empty cargo spaces or those with little or no value
These three things typically go by the name “vehicle insurance” because they each relate directly to protecting your car or truck from physical damage, loss due to unauthorized taking of the vehicle, and/or reimbursement for downtime while it is being repaired.
However, many people don’t know what these different types of vehicle insurance actually do. For example, most people assume that buying loss of use coverage means you get reimbursed if you have to take time off work to fix your car after it has been stolen. But this assumption is wrong!
Loss of use coverage usually includes two components: lost wages and depreciation. Lost wages mean you are paid for the time you spend working on and repairing your car at home – not just during the day, but also for the commute to and from work. Depreciation covers the cost of replacing the vehicle itself, which is often referred to as the replacement price.
What are the different policy lengths?
There are two main types of short term truck insurance policies– what we call guaranteed renewable coverage (GRC) and limited duration cover. A GRC plan gives you certain levels of coverage for a fixed number of months or years, after which time it will automatically renew for another month or year! You can keep paying your premium and staying protected during that period, or you can choose to cancel at any time.
A limited duration policy covers you for a set amount of time only, usually one to three years. After this, you have to re-apply for extended protection again. These policies can be expensive due to their shorter lifespan, but they do give you more value for money than no coverage at all.
You also get an extra layer of security with a limited duration policy as you won’t need to make sure you’re not breaking any laws to remain free from legal action.
Who is not covered by short term truck insurance?
You may be wondering who is NOT COVERED by short term vehicle insurance! While it seems like a good deal, there are some important things you should know about these policies before buying one.
You may not be protected for:
Bodily injury or death of your driver or passenger
Damage to the other person’s property
Medical bills for yourself or someone else
Loss of income if you have to take time off work
These costs can add up quickly, so make sure you understand what kind of coverage you have before paying extra for more protection.
It is also very important to check whether this policy covers YOU as an additional insured under their policy. Many times, people buy this type of policy thinking they are protecting the car they are in, but they are actually covering another driver! This could easily cost them money in legal fees.
What are the different types of trucks?
There are three main categories of truck depending on how fast they can go. These are heavy duty vehicles, medium duty vehicles, and light duty vehicles.
Heavy duty vehicles are typically considered cars or larger than what we refer to as a typical car. A vehicle in this category is able to take you longer distances at faster speeds so they are much more expensive to own.
Medium duty vehicles are slightly better priced than heavy duty vehicles but not by too much! These are usually less than $25,000.00 in price.
Light duty vehicles are typically cheaper than either of the two mentioned before. Some companies will refer to these as run-about trucks due to them being capable of running around town.
Trucks come in all shapes and sizes dependent upon what their use is.
What are the different types of insurance?
While it may seem expensive to buy short term truck insurance, you actually get very good coverage!
In fact, most companies offer more comprehensive cover than what is typically referred to as “truck insurance”. This additional coverage can easily be included in your monthly premium, making short term auto insurance much better value overall.
Some examples of these add-ons include: personal injury protection (PIP) or collision damage waiver (CDW), legal assistance, 24 hour roadside help, theft recovery services, tolls and transportation fees, etc.
These additions make sure that you don’t face financial hardships due to an accident caused by negligence. In addition, some will even pay for repairs at non-auto repair facilities or give you money to fix your vehicle yourself!
This way, you don’t have to worry about how to pay for fixes or replacements since this all is taken care of. It also gives you time to focus on recovering from the accident instead of having to find extra sources of income to meet other expenses.