Determining the need for a permanent or a temporary liability insurance policy is easy. If the item being covered is used on a continual or long term basis, a permanent liability insurance policy will be required. If the item being covered is used for a short term or rarely, a temporary liability insurance policy may be a better bet. The exception to this rule would be items that are under a lease or lien. Most banks and financial institutions require a permanent insurance policy is retained on the property until it is owned. Many of these institutions will also have a minimum on the coverage and a maximum on the deductible. This is to protect the financial institution against a loss as the owners of the property if the user of the property is not able to afford the repairs or damages.



Finding temporary liability insurance coverage depends greatly on the type of property being covered. If the property is an owned vehicle that is only occasionally taken out, a traditional auto insurance company should be contacted. This would include Geico, AllState and Farmer's Insurance. The amount of coverage and the costs of the temporary liability insurance should be discussed. The insurance company may request the mileage count of the vehicle per year to ensure that it is not being used full time. The insurance company may also request the license plate of the vehicle while it is in storage. This plate would be returned after the policy was reinstated.



If the temporary liability insurance policy is for a rented vehicle, the rental facility will be able to provide the renter with insurance. This insurance is often suggested by the company but not required. This is because most people renting a vehicle have a different full coverage plan for other vehicles. The price of the insurance through the rental agency is typically much less than it is through a traditional insurance company due to the group rates that they purchase. In addition, the rental company may charge a portion of the full time liability insurance coverage to the renter, rather than forcing a new contract or policy to occur. This can drastically cut the costs for both the rental agency and the renter. It is not possible to purchase liability insurance for a private vehicle through the rental agency.