Why Get Temporary Insurance?
Insurance coverage is a very big topic that seems to be in the news every day. All families want to have coverage, but sometimes it is unavailable. Don’t panic. If this situation comes up for you, there is an answer. It is times like these that you might want to purchase some temporary insurance. Temporary insurance is easy to find, and once you are accepted, your coverage usually starts the very next day! You and your family don’t have to go unprotected, during periods where you might have a gap in coverage.
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Short term insurance is for people whose insurance coverage may have been interrupted in some way. Maybe it was due to a change in careers, a job layoff, or a student in college. There a many reasons a person might need temporary insurance. Some jobs do offer insurance, but it doesn’t take effect for three months! The odds that someone in your family may need medical attention during that time are strong.
It is better to have that coverage just in case you need it. Temporary insurance companies are not as strict about getting accepted. One reason is because they know the duration of their relationship with you is going to be short. In other words, they hope you and your family will be healthy the entire time you are with them. However, rest assured your claims will be paid should you or someone in your family need them. You can sleep well, knowing your family is protected.
If you leave a company where you already had insurance benefits, you will usually be offered Cobra insurance. This temporary insurance can be used for up to 36 months in some cases, however it is extremely expensive.
Here are some advantages of short term or temporary insurance.
- It can usually be renewed up to 36 months
- The premium is more affordable
- Temporary insurance must be accepted by any doctor in the country
- They will give you a credible coverage certificate upon leaving
Some disadvantages should also be considered with obtaining insurance.
- At some point it is not renewable anymore
- Pre-existing conditions would not be covered
- You may not be able to renew if you develop a major illness while on the plan
Just remember that short term insurance is not for routine exams, or preventative medicine. It is to cover the gap between permanent insurance, and cover you from unforeseen illness or injury.
On Your Mark, Get Set, Go!
Most major cities usually have a site where the average Joe can race on a track just for the thrill of it. However, when getting ready to race, drivers usually do not give a second thought to car insurance. These every now and again race track drivers do not bother to look at their policies to see if they are covered in the event of a crash. They do not even realize that the vast majority of them are not insured in case of an accident on the track.
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What Do You Mean I’m Not Covered?
For the longest time, the typical car insurance policy would not cover any damage that occurred when the vehicle was being driven at a timed event. This created a loophole allowing drivers to be insured if they could claim that the accident occurred while they were taking driver’s education courses, even if these courses took place on a race track.
Coverage existed if the driver could prove that the event was not timed, there was an instructor present in the car, the vehicle was not enhanced so that it could be raced, and the event was not marketed as a competition. However, times they are changing. Insurance companies have now begun to change policies to protect themselves from the once in a while racer. Most car insurance policies now state that there is no coverage if any damage occurs at a location that could accommodate racing.
And Then There Was Track Day Insurance
This left many thrill seekers scrambling for a solution. One answer was to race with a cheap car. If an accident occurred in a car with a low value not much would be lost. Another solution was High Performance Driver’s Education (HPDE) insurance. This type of coverage allowed the driver to be insured while on race track premises.
Depending on the policy, either the car only is covered or there is a liability clause. Polices can be written to cover a single event, can be annual, or a variation of the two. However, all policies are usually based on an agreed value and consider the vehicle to be a total loss if there is approximately 70% damage to the car. This can be a problem for racers who under insure their high end vehicles because the driver only receives the agreed to value of the car in the case of an accident. The insurance company then retains title to the car. Even though there can be a down side to HPDE insurance, it was a welcome sight for drivers who race their cars occasionally and wanted the peace of mind that insurance can bring.