One day insurance is also considered random or incidental insurance meaning that the insurance company does not have a real relationship with the insured and thus might look at the insured as a higher risk customer. So how does this align with the previous statement that one day car insurance can actually be cheaper? The reason why it can be cheaper is that one day car insurance is a product you only used when in need. If you drive your car every day and need car insurance on a daily basis that a yearly based insurance is the way to go but if you only use a car every now and then a yearly insurance would be more expensive than buying one day car insurance when needed since with a yearly based insurance you will be paying for many days in which you do not drive and do not need insurance while one day insurance is optimized to just that time when insurance is needed.
One day insurance can also be useful in other cases. For example some people that own their own car and also own their yearly policy on that car prefer to buy one day car insurance when driving someone else car. There are a few reasons for that. One is that when driving a different car some people feel they are more likely to run into an accident since they are not used to that vehicle. Since they are afraid of an accident they prefer to buy a cheap one day insurance for their coverage. If god forbid they run into trouble they would file a claim against their one day car insurance as opposed to filing a claim against their yearly policy that will result in premium increases.
Another time when one day car insurance can be useful is when driving a significantly different type of vehicle. For examples sometimes you would borrow or rent a truck for moving or other purposes. In such a case you are more prone to accidents since you are less familiar with driving a truck. In addition your passenger car insurance policy might provided limited inadequate coverage for trucks and thus another one day car insurance is needed to cover that gap. When renting a car you can obtain one day car insurance from the rental company or you can also obtain that one day car insurance coverage from any other insurer shopping around for better prices.
And the last reason why one day car insurance might be needed is when needing different coverage limits. For example if you are regularly driving a cheap car your yearly insurance damage coverage might be limited. If you decide to borrow your friend expensive car maybe for one day or for a nice weekend drive you will want to get insurance with higher limits since your normal insurance will not be enough to cover damages to that more expensive car if god forbid something happened.
If you can help it, live in a rural area. If you can, it will save you a lot in car insurance. Here's why...
1) Accidents are less frequent in such areas (You don't need to be a genius to know that).
2) Car theft and vandalism are also less likely in such areas. Thieves like operating in places where their identities won't be easily uncovered. That's not the case in rural areas. Everyone knows everyone else.
For these two reasons among others, you'll get a lower premium if you choose to live in a rural area. But what if you insist or have to live in a city? You can still benefit from your place of residence by taking the following into consideration...
There are areas mapped out as red light districts or high crime zones. If you avoid such areas, you'll be saving yourself a lot of money. And, please note that in mapping out areas, there just has to be a separating line. Here's what I mean...
The next street to yours might be mapped into a different zone from yours. If this is the case, you may have a huge difference between your premium and someone else with a similar profile living on the next street.
Lastly, make sure you understand the fundamentals of making considerable savings in car insurance. That way, you'll know how to take advantage of discounts available out there.
Both Hilary Skinner & Chimezirim Odimba are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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