Short Period Insurance
Definition - What does Short Period Insurance mean?
Short period insurance refers to a policy, in which coverage applies for less than a year. It can even be effective for one day only. It is usually used by a driver who is using a vehicle that is insured in someone else's name.
Insuranceopedia explains Short Period Insurance
Short period insurance is also called short term insurance. As its name suggests, its effectiveness is only for a short period of time, including one day. Some companies have 28 days as the maximum number of days for its insurance. It is usually sold by car insurance companies.
This kind of insurance is bought with these likely scenarios: a driver wants to use a vehicle owned by someone else and he or she wishes to be insured while driving it, if a person wants a new car insured but the long-term one is still being processed, or if one lends a car to someone else who is not named in his or her policy.