It might be bit confusing to show the distinction between drive away insurance, driveway insurance, and temporary insurance. While temporary insurance and drive away insurance are alike in the way that temporary liability or physical damage or both insurance is provided only for a particular vehicle; auto driveaway insurance is bodily injury and property damage coverage offered to businesses that are in the trade of transporting other businesses autos from one point to another.

Temporary Auto Insurance Binders and Driveaway Insurance Are For Personal Use

Temporary insurance, including 2 or 5 days car insurance binders, is offered to individuals in scenarios where a temporary need for insurance is present. For example, if you are buying a car from a dealer but you have not made up your mind if you want to keep the auto or not, or are purchasing a vehicle as a gift for someone, or when you are debating whether to add a newly acquired auto to your present policy or not, then a temporary 7 days insurance binder, for example, may be very useful.

Warning about temporary insurance binder: Regardless of how good and beneficial temporary insurance is, the coverage suffers from severe issues regarding its ability to provide protection to the customers. While temporary insurance can answer many short term concerns, it has a very serious problem that occurs from the lack of better comprehension of its functionality. Many times temporary binders provide protection only physical damage (comprehensive and collision). If the operator gets in an at fault auto accident, then the temporary physical damage binder will pay to fix the vehicle, but will not offer any liability coverage, hence leaving the operator fragile for lawsuits.

If you have obtained a temporary insurance policy, or temporary binder, read the components of coverage presented, exclusions and provisions. These coverage may or may not be suitable for you. If you already have an in-force auto policy, coverage offered for newly acquired auto vary. While many insurers that stick to the ISO personal auto policies will offer immediate temporary coverage (which means you do not need to buy additional coverage), many non standard insurers do not present any automatic coverage for newly acquired autos, hence you cannot count on any temporary coverage from your present auto policy.

Auto Driveaway Insurance Is For Garage Businesses

Individuals and institutions that are in the business of transporting autos from site to site are required to get auto liability coverage to protect them in situation they cause bodily injury or property damage while driving other people autos. While on-hook coverage for towing businesses and cargo coverage for car carriers are appropriate coverages, other establishments that drive away vehicles singly, use towbar, or saddle mount, maybe mandated to obtain further state licensing (in Illinois its called In Transit Plates) and separate coverage or endorsement to their current coverage to include auto drive away insurance.

Driveaway vs Driveway Insurance: Driveaway insurance is not to be mixed up with driveway insurance. Driveway insurance will apply to coverage for incidents on driveways. Naturally local authorities and municipalities will ask for this coverage to issue or renew business licenses for businesses that are using driveways or any part of them to transact business (used car dealers, peddlers, etc.) Driveways are normally considered part of the business premises, hence, should be covered under the Commercial General Liability.

Author Bio: Author is member of Insurance Navy, a Chicago leader of business and auto insurance. You can get information about online auto insurance or information about North Riverside business auto insurance quote by visiting company\’s website.

Category: Finances
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