When Permanent Insurance is not Needed: Temporary Liability Insurance



Liability insurance is a fact of life for most people. Every time a person drives a vehicle they use their liability insurance. Every time that a person walks into a business or restaurant, the owner uses their liability insurance. The liability insurance covers the individual on the chance that an injury or loss occurs that is the policy holder's fault. This would be if a person collides into another with a vehicle or if a person slips on the overly waxed or wet floor of the business. However, there are others who do not need permanent insurance against these injuries, but rather temporary liability insurance.



In large cities, vehicle ownership is not taken as a given. Many people in large cities rely upon the taxi or mass transit systems. These individuals only use personal cars for long trips out of the city or if they have room to store the vehicle. Many of the large cities are even beginning to charge tolls for having personal vehicles in the downtown sections of the city, further limiting the number of people who have personal vehicles in the city. This limit of personal vehicles also limits the number of people who would need permanent liability insurance.

Those who rent vehicles for specific trips and events may use a temporary liability insurance policy. This insurance is a short term insurance that may extend coverage for a single day or several months, depending upon the need. This insurance is typically more expensive than traditional liability insurance, but since it is temporary, the individual is not paying the high rates for a long period of time. This can save the individual a large amount of money in the long run. The temporary liability insurance policy may even provide a refund if the individual is able to not use it or the vehicle is returned before the policy term is over.