Back in the day you could only get only one type of insurance, that is long term, which would last for at least a year. Nowadays, with people’s lives being so hectic and fast, insurance companies have adapted and now have weekly car insurance and even Pay As You Drive insurance.
Weekly insurance is good for those occasions when you’re going on a trip or out of town for a few days, but don’t have a regular car insurance (Perhaps you live in a big city and don’t need to drive to work like most people do in America). Then going with a weekly car insurance is going to be perfect for you.
These weekly coverages are also customizable, just like the regular, long-term insurance policies. You can get as much coverage as you like and the type of coverage that you need. For example, it’s a good idea to get collision and comprehensive coverage along with uninsured and and under insured motorist coverage if you’re renting a car because in virtually ALL car rental contracts you are reliable for whatever happens to the car so it’s best you protect yourself by getting appropriate car insurance.
If you’re only driving a few weeks per year then going with a weekly car insurance plan will definitely be a money saver decision for you. If that’s the case you may also consider the pay as you drive insurance.
Pay-As-You-Drive (PAYD) insurance is made for reducing the mileage, especially for high-risk drivers as they’re the ones who pay sky high prices for auto insurance along with people who do not have any auto insurance at all, by providing them a cheap alternative to long-term auto insurance. Under the Pay As You Drive, insurance companies would switch from the old, monthly, semi annual or annual premiums to premiums based on the number of miles driven each month. Of course driver’s age, tier rating, the kind of car, all these would be taken into consideration too, just like with regular insurance.
With a PAYD insurance the miles you drive each month are measured by either having a measuring device in your car or by reporting the miles to the insurance company each time you have an auto check-up.
The Pay As You Drive insurance is more of a long-term approach to paying less if you truly drive less, and the weekly car insurance might be the thing to opt for when you just need insurance for a very short period of time and you don’t require it on the regular basis.
With that said, the weekly insurance is considerably pricier if you compare the per-day cost with the regular insurance. One of the factors that contributes is that there is additional risk associated with getting a car insurance only for a week. An opposite of this would be getting a discount on your regular car insurance if you pay the whole amount only once a year, by giving the insurance company a big lump of money for your yearly coverage. With weekly car insurance it’s just the opposite.
The cost of weekly car insurance is going to vary depending on your car, age, experience and other rating factors which I explain in cheap car insurance for women article.