Short-Term (Temporary) Car Insurance: Meaning & When Should You Avail It?

• A short-term car insurance provides insurance coverage to your vehicle for a temporary period.
• It offers flexible coverage that financially protects you against contingencies.
• A short-term car insurance is used when your need to drive a car is limited to a short time frame.
• For instance, you can get a short-term car insurance if you are relocating, learning to drive, or renting a car.
• The types of short-term car insurance include gap insurance, rental car insurance, non-owner insurance.

Having an insurance cover for your vehicle is considered absolutely essential these days. However, committing high amounts to regular insurance premiums can prove to be heavy on your pocket.If you are someone who is looking to buy a car insurance plan for a duration of less than one year, you can consider choosing a short-term car insurance. In this blog, you will find out what is a short-term car insurance and when you should get one.

A temporary or short-term car insurance provides insurance coverage to your vehicle for a short time duration. Due to its temporary nature, the validity of a short-term car insurance can be as less as a few days or as long as a couple of months. Such a policy provides highly flexible coverage that financially protects you against contingencies, such as an unfortunate accident or theft.

A short-term car insurance usually works like a regular car insurance policy but comes with greater flexibility. While the tenure of a normal car insurance policy is one year, you can choose to buy a third-party policy that provides your vehicle with minimum possible insurance coverage.

A short-term car insurance is used when your need to drive a car is limited to a short time frame. For instance, you can avail a temporary car insurance if you are relocating to another city, learning to drive, or renting a car.In such cases, you wouldn't need a car insurance coverage for 12 months and your requirement could range from a few days to a month or two.

It is important to note that you may need the following details while buying a short-term car insurance:

• Personal details like your name, address, gender, etc.
• Identification documents like driving licence and address proof.
• Details of your car, such as the engine capacity, make and model, fuel type, seating capacity, etc.

A short-term car insurance is available in the following types:

Gap Insurance

This type of insurance is availed for cars that are bought on a lease or loan. It requires the car to be financed by a third-party and the owner gets the reimbursement for the car's market value.

Rental Car Insurance

This type of short-term car insurance policy provides insurance cover to a rented car. Accidental damages, injuries, etc. are essentially covered under a rental car insurance

Non-Owner Insurance

Non-owner insurance is similar to a rental car insurance, however, it is mostly offered for private vehicles. You can buy a non-owner insurance policy when you are borrowing a car from a friend or relative.

Short-term car insurance provides coverage against accidental damage to the car and/or accident of the driver; and provides financial protection against damage arising out of natural and man-made disasters.You can opt for a short-term car insurance term policy over a full car insurance policy in specific situations, such as:

• When you are using a rented car.
• When you are driving a private vehicle borrowed from a friend or relative.
• When you plan to resell a car soon after you purchase it.
• When you are learning to drive a car.
• When you are using a car in another state for the purpose of business or travel.
• When your own car is used occasionally.

Also Read: Here's how you can avail of a car insurance

Whenever you buy a vehicle, it is important to get an insurance policy for the same simultaneously. Usually, you think of getting a long-term policy that provides financial backup in case of an accident.However, with the availability of short-term car insurance policies, you can easily insure your vehicle for a short duration and within a limited budget. You can get a customised short-term insurance plan that best suits your needs based on duration, type, and your preferred insurance company.You can also get a Motor Insurance from Aditya Birla Capital. Explore now!