Temporary Car Insurance

When you think about vehicle insurance, you probably envision a one-year contract that must be renewed each year. In fact, however, this is not the case. Vehicle owners can choose temporary or short-term auto insurance coverage to give financial protection for their vehicles in the short term.  There are also one-day car insurance policies offered by many companies which can cover you for a single day.

Short-term automobile insurance provides the vehicle owner with flexible coverage without requiring a long-term commitment from the insurance carrier. Here we will discuss the different types of short-term car insurance that are available.

What is Short Term Car Insurance?

A temporary vehicle insurance policy, as the name implies, provides the policyholder with short-term coverage. Because this sort of insurance is only temporary, the coverage is only good for a few minutes, one day or a few days, depending on the insurer. If you do not want to acquire car insurance for a complete year, you can buy short-term car insurance to get temporary coverage. Short-term insurance is not widely used in India but in other nations.

In India, insurers provide two types of coverage: comprehensive and third-party coverage for a one-year term. Temporary automobile insurance comes into play when the car owner's needs are time-bound or limited. This may include situations such as driving for a few hours, relocating to a new place, learning to drive, and so on when you do not need coverage for more than a year.

Types of Short-Term Car Insurance

One-month automobile insurance is less comprehensive than comprehensive car insurance packages. The scope of temporary car insurance is limited and comes in the following varieties:

Liability Insurance

This insurance is offered for cars purchased on lease or loan. A third party finances the car under this policy. If the car's damage is irreparable, the gap insurance coverage kicks in. If the car was purchased with a loan, the insurer compensates for the market value of the vehicle and pays the remaining loan debt.

Insurance for Non-Owners

This coverage is identical to rental automobile insurance, except that it covers private vehicles. If you borrow a car from a family or a friend for a month, you may use this coverage to insure it for the duration of your loan.

Vehicle Rental Insurance

This form of car insurance per month includes rental car coverage. Accidental damages are covered under this insurance.

When to Get Short Term Insurance?

One-month car insurance options cover unintentional damages, natural disasters, personal accidents, and so on. Financial damages incurred as a result of man-made disasters are also covered by this policy. You should select the best temporary auto insurance policy for comprehensive coverage in the following situations:

  • If you are driving a rental vehicle.
  • If you are a beginner who is just beginning to drive,
  • If you are a driver with limited driving experience.
  • If you need an automobile for a short period of time in another state for travel, business, or work.
  • If you need to sell your new car right away due to an emergency.
  • If you possess a car but use it only sometimes.
  • If you are using a private vehicle loan from a relative or acquaintance.
  • If you own two cars but only use one of them frequently.

Advantages of Short-Term Insurance Policy

Depending on the needs, the policyholder can purchase a 1-month, 6-month, or 9-month auto insurance policy. In this form of policy, the policyholder often pays less in monthly insurance costs than in a policy with a longer period.

  • Coverage is immediate.
  • Third-party liability insurance.
  • Third-party property damage coverage.
  • Possibility to purchase the coverage 30 days prior to the start date.
  • Mind at ease.
  • Accidental harm.
  • The motorist had personal accident insurance.
  • The period of coverage is completely adjustable.

How to Claim Short-Term Car Insurance?

Step 1: Within 48 hours of the accident or theft, contact your insurance company.

Step 2: In the event that the bike is damaged or stolen by a third party, file an FIR.

Step 3: Provide the necessary documentation.

Step 4: The insurance company will hire a surveyor to determine the amount of the damage.

Step 5: The vehicle will be towed to the garage for repairs.

Step 6: If the car is being fixed at a network garage, cashless service will be offered.

Step 7: In the event of theft, the policyholder will receive the insured declared value when the police share an untraceable report.

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