Temporary or Short-term Car Insurance: All You Need to Know!
Insurance often evokes thoughts of long-term commitments that provide financial backup in case of unfortunate events. However, vehicle insurance is more dynamic than many perceive. Policyholders can customize plans, choose their preferred insurance company, and select the type of insurance that best suits their needs. Temporary or short-term car insurance is a prime example of this flexibility, offering coverage that adapts to various contingencies.
What is a Temporary Car Insurance?
Temporary car insurance offers coverage for a short duration, with validity ranging from just a few minutes to a couple of months. When someone doesn’t want to commit to a full year of car insurance, they can opt for short-term or temp cover insurance.
How does Temporary Car Insurance Work?
In India, insurance coverage typically falls into two main types: Third-party Liability policies and Comprehensive policies. A standard car insurance policy usually lasts one year. Individuals can purchase additional coverage through add-ons and enjoy extra benefits by opting for a Comprehensive insurance policy. Conversely, buying at least a third-party policy is legally required and provides the minimum coverage for the vehicle owner.
Temporary car insurance is ideal when a person’s need to drive a car is limited by a specific time frame or a clear exit criterion, such as relocation, learning to drive, or renting a car. In these cases, 12 months of coverage isn’t necessary, and the requirement might only span from a few hours to a couple of months. Opting for temporary car insurance is the most sensible choice in these situations.
Temporary car insurance is rare in India but quite popular in foreign countries. You can search for a short-term insurance company and inquire about the coverage and other policy terms.
Typically, the following information is needed when purchasing a temporary car insurance policy:
- Personal details such as name, address, profession, gender, and more.
- Identification documents such as a driving license and claims history.
- Proof of address.
- Car details include engine capacity, make and model, fuel type, and seating capacity.
Types of Temporary Car Insurance
Temporary car insurance coverage in India offers less comprehensive protection compared to a full-fledged car insurance policy. A Comprehensive policy protects the policyholder against car theft, damages to the insured car, third-party liabilities, fire damages, and calamities. However, temporary car insurance offers limited coverage and may be available in the following types.
Gap insurance
Gap insurance applies to cars purchased on lease or with a loan financed by a third-party. It activates coverage in the event of total loss, where the car is damaged beyond repair. In such cases, the insurance company compensates the market value of the car. If the loan amount exceeds the market value or Insured Declared Value (IDV), Gap insurance covers the difference to settle the loan for the policyholder.
Rental Car Insurance
Rental Car Insurance is the type of car insurance policy that covers a rental car. Typically, it includes coverage for accidental damage, injuries, and other related incidents.
Non-owners Insurance
Non-owners Insurance resembles rental car insurance but is primarily intended for private cars. For instance, individuals typically purchase non-owners insurance when borrowing a car from a friend or relative.
Benefits of Coverage Offered by Short Term Car Insurance Policy
The policyholder can opt for a 1-month, 6-month, or 9-month car insurance policy based on their needs. In these policies, the cost of insurance per month is typically lower compared to policies with longer durations.
- Coverage is immediate.
- Coverage includes injuries to third parties.
- Coverage extends to damage of third-party property.
- Damage caused by accidents.
- Coverage for personal accidents involving the driver.
- You can fully customize the duration of coverage.
- You have the option to purchase the policy up to 30 days before the start date.
- A sense of calm and assurance.
When and Why to Buy Short Term Car Insurance Policy?
Short-term plans offer coverage against various liabilities such as accidental damage, calamities, driver’s personal accidents, and financial protection from damage caused by natural disasters and man-made calamities. Choosing a short-term policy over a full car insurance policy is feasible in specific special situations.
Below are examples of such scenarios:
- When renting a car.
- When using a privately borrowed vehicle from a friend or relative.
- When intending to resell a car shortly after purchase.
- When in the process of learning to drive a car.
- When using a car in another state for business or travel purposes.
- When unable to use your own car.
- Drivers who have limited driving experience.
Explore MyPolicyExpress Car Insurance Policy Online & its Benefits
MyPolicyExpress, one of the fastest-growing digital-first insurance companies in the current market, excels in customer service for policy purchases and claims. Here are the reasons why you should consider purchasing car insurance from MyPolicyExpress:
Best Price
MyPolicyExpress offers the best prices for car insurance by eliminating commission agents or middle-men, allowing the company to pass on the savings directly to customers as discounts.
Quick Claim Settlement
Rental Car Insurance is the type of car insurance policy that covers a rental car. Typically, it includes coverage for accidental damage, injuries, and other related incidents.
Value-Added Services
MyPolicyExpress provides free pick-up and drop-off services for cars damaged in select cities, cutting down on towing costs to garages post-accident. Register claims via our website or mobile app for faster processing. These features, alongside a dedicated customer support team, position MyPolicyExpress as the premier car insurance solution for customers.