Term insurance is a very specific insurance that concerns vehicles (car, motorcycle) as well as health or housing. There is also a temporary death insurance contract, to be differentiated from traditional life insurance. Find out what this time-limited insurance consists of and the pitfalls to avoid.
Summary
What is term insurance used for?
As its name suggests, this is insurance that covers a fixed period. For example, car insurance can be taken out for a specific period of time. It can cover between one and ninety days, with the possibility of renewal.
Insurers offer this type of coverage to meet the specific needs of their policyholders. Term insurance have the particularity of being renewable. By opting for this kind of fixed-term contract, you do not invest money unnecessarily.
Term car insurance is particularly suitable when the vehicle must be exported or immobilized. Occasional drivers can also take out this type of insurance.
The conditions for taking out temporary car insurance
For this very specific type of coverage, insurers are more fussy. It’s necessary meet certain conditionss. Among them, being over 21 years old and having more than two years of license. You will also need to provide a copy of your license and registration document, as well as your latest statement of information. Failing this, you can provide a sworn statement with your background.
Regarding the temporary insurance for motorcycles, it can only be valid on models between 126 cc and 750 cc.
Term auto insurance rate
To determine the amount of term insurance for your car, the insurer uses various criteria. It takes into account the power of the car, its brand and the use that the insured makes of it. The driver profile is also important. The insurer will pay attention to the accumulated bonus and malus. The price of temporary car insurance also depends on the region in which the vehicle will be driven. The duration of subscription also varies the price. Temporary car insurance costs more than conventional coverage. This must be subscribed by default.
Before taking out a temporary car insurance contract, compare the different offers on the market! To make it easier for you, you can use comparators. Easy to use and without commitment, they allow you to establish and compare different quotes.
As with classic car insurance, additional guarantees can be added (theft, fire, glass breakage, etc.). Breakdown assistance is also part of the options offered.
Temporary health insurance
Temporary health coverage is recommended for your travels abroad or in the case of expatriation. Without insurance, you will not be covered in certain countries in the event of illness or hospitalization. And medical costs can be very expensive.
When subscribing to temporary health insurance, be vigilant about the amount of reimbursements. Some coverage is based on Social Security reimbursement limits.
Temporary home insurance
Short-term home insurance is suitable for a few specific situations. It can be judicious in the event of rental for a fixed period (holidays, internship, etc.). For owners, it is important to insure their accommodation in the event of theft or damage, but also for claims such as water damage or fire.
Term life insurance
The purpose of this provident insurance is to guarantee capital to the beneficiaries of the contract. Temporary death insurance also covers cases of disability.
As its name suggests, term life insurance only covers a limited period of time. Generally, the cover is valid for one year, with the possibility of renewal. Insurers offer five-year death contracts. The contract lasts five years, and is renewable.
Each contract has its own guarantees. Several options are available. Guarantees can relate to the loss of employment or the repayment of loans. There is also an education allowance concerning the payment of children’s studies.
If no incident occurs during the term of the contract, the insurance contributions are not recoverable. The contract is then said to be non-refundable.
As with all other insurance contracts, there are many exclusions. Suicides and deaths resulting from the exercise of an extreme sport are not taken into account. Illnesses known before the subscription of the contract are also the subject of a refusal of compensation.
Buy temporary motorcycle insurance
Less common than temporary car insurance, because less known, temporary motorcycle insurance is nevertheless increasingly in demand. As explained above, their field of action remains reserved for motorcycles of 126cc and above. As for the driving license you will need to be over 21 years old and a driving license dating back more than 2 years in order to be able to temporarily insure your motorcycle. In general, temporary insurance is stricter than conventional insurance. Insurers want to be sure that they do not cover a person with a high risk of experiencing an accident. It may therefore also happen that you are asked for a history of your road driving. Suffice to say that having seen your license suspended or canceled makes it impossible for you to take out temporary motorcycle insurance.
If you want to know more about your coverage options, click here for a temporary motorcycle insurance quote. An insurance company such as april-moto.com provides you with complete or temporary motorcycle insurance that suits your needs, and this, for an unbeatable price. They have specialized for almost 35 years in the insurance of motorcycles of all types and are therefore among the best on the market to meet your needs.
As their name suggests, temporary motorcycle insurance is generally intended for people who intend to make occasional use or specific use that is not covered by conventional insurance. They are therefore addressed to:
- to motorcycles moved occasionally such as vintage motorcycles
- motorcycles being imported or exported. They will therefore be insured for the time of their arrival at their destination.
- a temporary trip to a country in which your traditional insurance cannot cover you
- A motorcycle bought on the internet and registered in another country of the European Union and waiting to be put into circulation
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