Question:
I have only liability on my older car (2000 Toyota), and I'm going
on vacation with it soon. Can I change to full coverage for
the length of my vacation and then change back to only
liability?
Answer:
Yes, most auto insurance companies will allow you to add
comprehensive
and
collision
coverage, what people refer to as "full coverage," to your policy
mid-term and then take them off later if you no longer find a
need. (See "
Insure your car from showroom to junkyard
")
You, however, won't be able to add comprehensive and collision
for whatever the length of your vacation may be. Instead, you'll
have to purchase these coverages for the remainder of your auto
policy's term and then cancel them when you're done with your
vacation.
When adding these physical damages coverages to your policy,
your car insurance company should pro-rate the cost from the date
you add them through the end of your policy period. When you
return, you would again contact your car insurance company to
remove comprehensive and collision from your policy; the difference
in premium from the day you canceled through the end of the policy
should be refunded.
To add physical damage coverages to your vehicle, you may be
required by your state and/or insurance company to have an
inspection of your vehicle. The inspection is done to document the
car's physical condition, its options and accessories and any
pre-existing damages. Give yourself enough time before vacation to
get the inspection done if it's needed.
You might also want to think about raising your
bodily injury liability
and property damage liability limits. If you are worried about
being in a crash while on vacation, then you'll not only want your
car protected, but enough auto insurance to cover others that you
may harm and protect you from lawsuits.
If you have low liability limits, then it's easy for them to be
exceeded in even a minor auto accident. Higher liability limits
will better protect your assets by there being less of a chance of
you personally being sought after for damages to others that
exceeded your auto insurance limits.
The insurance industry recommends liability limits of at least
100/300/50, which translates to $100,000 per person and $300,000
per accident for bodily injury liability coverage and $50,000 for
property damage liability coverage.
When reviewing your policy before your vacation road trip, also
make certain that your coverages will follow you if you are
traveling out-of-state. Normally, most will, but with some auto
insurance coverages, such as personal injury protection (PIP), the
rules for making claims for an out-of-state accident can vary from
an in-state accident.
And, when you get back, if you decide to keep your physical
damage coverages, make sure you are getting the best rates
possible. It may be that your current insurer gives you the
cheapest rates for a liability-only policy, but you could save
hundreds of dollars by comparison shopping with other car insurance
companies that offer cheaper rates on policies that include full
coverage.