Short Term Insurance To Assist Your Immediate Needs

3rd June 2010

In general there are just two main types of

insurance policies that are bought by companies and individuals. One is a Short

Term Insurance and the other is a long term insurance. The former policy – the type

on which is article is primarily based on, is insurance for the possessions an

individual holds, and this type of insurance is usually taken for your home,

car, health etc.

When you purchase such a policy you are

protecting yourself against the possibilities of losing your belongings and

having to replace them yourself. In such an event, the insurance company

carries the risk and in exchange of taking this risk on their shoulders, they

charge you a monthly fee – which is called the premium. The size and value of this premium will depend mainly on

the overall amount for which you plan to obtain the insurance.

Here are some instances when your insurance

company will reimburse you when you have a Short Term Insurance cover:

  • If your car is stolen
  • If your car is written off in an accident
  • If your home is burgled with the loss of valuable items

During such instances the insurance company

will either give you cash or replace the items.

If you are planning to invest on a cover of

this type, it is important that you are fully aware of the conditions of your

insurance policy. If the given conditions are not met, your claim may be

denied. Here is a situation which will help you understand this requirement

better and show the importance of fully studying the conditions:

A Short Term Insurance cover policy for a

car might require that the vehicle is equipped with a vehicle-tracking device.

In the event that your car is hijacked and if you had overlooked installing

this device in your car, the insurance company might not honour your claim.

Thus it is your obligation to study what the policy requires and what it might


This insurance can also provide you with a

cover to drive another vehicle or to cover someone else to drive your own. This

type of policy might be more practical and cheaper than making a change to your

existing annual policy. If you consider changing your existing policy, your

insurance company might increase the cost to cover the higher risk because of

the change.

Some insurance companies offer these

policies on a 24 hour basis, giving you the opportunity of taking insurance for

only 1 day or you may even have it for a maximum of 28 days.


Benefits of Short Term Insurance:

  • Offers insurance for short term use of vehicle and the hiring

    of drivers

  • Offers a cover if you have just bought a car and want to drive

    it immediately

  • Offers a cover if you plan to hire the vehicle or lend it

    someone else

  • It is quick and simple to obtain
  • It has the facility of purchasing additional benefits and extra

    assistance in the event of an accident that wasn’t your fault.