When we think of insurance, we usually believe it is a long-term commitment. You probably think insurance has to be bought for at least one year, three years or sometimes up to five years. The fact is, it isn't as rigid as it seems. There is also the option of short-term car insurance. The tenure for this type of insurance can vary from a few seconds to a few months. If you are someone who has their four-wheeler only for a short time period (less than a year), you can opt for this insurance. Though short-term insurance is rare in India, it is famous in many foreign countries. Short-term car insurance gives vehicle owners flexible coverage without needing a long-term commitment from the insurance company.
When a person drives a car for a fixed time frame, such as relocation, learning to drive, car rental, etc, there is no need for insurance that spans one year. In such a situation, temporary insurance is the perfect choice. This insurance can be bought even for a few hours. Very minimal requirements are there in terms of documents to buy this insurance. You will be asked for:
Here are the different types of temporary or short term insurance for your car:
Within this insurance category, you receive coverage for a rented vehicle for the duration of your rental period. Primarily, this insurance provides protection against damages resulting from accidents, injuries, and related incidents.
This insurance applies to vehicles acquired through leasing or through loans, where a third party provides the financing. Gap insurance coverage comes into play when there is a total loss, meaning the vehicle is damaged beyond repair. In such cases, the insurance company will compensate the car's market value. If the outstanding loan amount exceeds the market value or the Insured Declared Value, Gap insurance will step in to cover the remaining balance, effectively settling the loan for the policyholder.
Non-owner insurance shares similarities with rental car insurance, but it's typically meant for privately owned vehicles. For instance, someone would generally purchase non-owner insurance when borrowing a car from a friend or family member.
Some of the advantages of purchasing short term insurance during the time you have a four-wheeler are:
Depending upon the requirement, a policyholder can purchase short term insurance for 1,3 or 9 months. Some of the situations where one can consider buying short term insurance are: