Temporary (Short-term) Car Insurance

Temporary Car insurance, is a short-term coverage option that provides car insurance for a limited period of time. Unlike general car insurance that lasts typically a year, these types of car insurance could last months, weeks, and even hours depending upon your requirements.

This type of insurance is an ideal option for those who don't want long-term coverage but still want to meet legal requirements and stay protected while driving.

How Does Temporary Car Insurance Work?

The process of applying for Temporary car insurance works in the same way as any other car insurance but with a shorter coverage duration. Here is how it works:

• Choose the Coverage period
• Provide vehicle and driver details which include personal details, driving history, claim history, driving license, and car registration number.
• Details such as engine type, make and model of the car, and engine capacity
• Get an instant quote from the Insurance providers who will calculate your premium based on factors like age, driving history, and the vehicle’s value.
• Activate your policy. Once all the formalities are done you will get your temporary insurance.

What Does A Temporary Car Insurance Cover?

Temporary car insurance covers a variety of liabilities, including:

• Third-Party Liability: Covers damage to other vehicles, property, or injuries to other people caused by your driving.
• Collision Damage: Covers damage to the insured vehicle in case of an accident.
• All-inclusive Cover: Includes theft, vandalism, fire, and other damages to the vehicle.
• Legal Costs: Helps with legal fees if you’re involved in a dispute.
• Personal Accident Cover: Provides financial support for injuries sustained by the driver or passengers in an accident.\

Types of Temporary Car Insurance

Let us understand what types of temporary insurance policies exist in India:

Gap Insurance

Gap insurance works for cars that have been bought on a lease or loan and financed by a third party. This type of insurance helps in cases of total loss, where the car is damaged beyond repair. The insurance company pays the market value of the car. However if the loan amount is higher than the market value or Insured Declared Value (iDV), then Gap insurance covers the difference to settle the loan.

Please note that gap insurance is not offered in India. However, a similar concept called Return to Invoice (RTI) cover exists. RTI is like an add-on cover that can be added to your existing comprehensive car insurance policy. RTI cover proves to be extremely useful in the following scenarios.

• If your car is stolen: You'll receive the maximum payout possible.
• If your car is completely damaged: You'll receive a payout close to what you paid for the car initially.

Rental Car Insurance

This insurance covers rental cars, protecting against accidental damage, injuries, and other issues, making renting a car safer and stress-free.

Non-Owners Insurance

Non-owners insurance is like rental car insurance but for private cars. It’s often used when borrowing a car from friends or family, offering protection without owning the vehicle.

Benefits of Short-Term Car Insurance

Short-term car insurance offers flexible coverage lasting 1, 6, or 9 months. It’s usually cheaper per month than long-term policies and provides the following benefits:

• Instant protection.
• Coverage for third-party injuries and property damage.
• Accidental damage protection.
• Personal accident cover for the driver.
• Flexible policy lengths.
• The option to buy coverage 30 days in advance.
• Peace of mind.

Temporary car insurance is rare in India, except for those provided with car rentals. To get the right plan, look for insurers that offer temporary car insurance and choose one with useful add-ons like Zero Depreciation, Consumables Cover, Key Protection, and Roadside Assistance.

Documents Required for Temporary Car Insurance:

Keep these documents ready when purchasing a temporary car insurance policy:

• Personal details (name, address, profession, gender, etc.)
• ID proof (driving license, claims history, etc.)
• Address proof for KYC verification
• Car information (engine capacity, make & model, fuel type, seating capacity, etc.)
• Additional car details (Engine Number, Chassis Number, Registration Date)
• Previous policy details (Previous Insurer, Expiry Date)

How to Buy Car Insurance Online

Purchasing car insurance online is simple and can be done directly through the insurer's website or platforms like InsuranceDekho.com

Steps to Buy Insurance from InsuranceDekho.com:

1. Go to the InsuranceDekho.com website and click on the ‘Car Insurance’ option on the homepage.
2. Enter your car’s registration number.
3. Verify your car’s details.
4. Provide basic personal information (name, phone number, etc.).
5. Confirm key details about your car and previous policy, such as:
   1. No Claim Bonus (NCB): Whether an NCB was applicable in the last policy.
   2. Claim Status: If any claims were made last year.
   3. Policy Expiry Date: Enter the date when your last policy expired.
6. Select any desired add-ons like Zero Depreciation, Consumables Cover, Key Protection, Engine Cover, or Roadside Assistance.

Please note that Add-ons will increase the premium but offer better coverage.

1. Choose a plan from the available options.
2. Fill out the proposal form with details like your name, address, car information (engine/chassis number), previous policy number, and complete the KYC process which has been made compulsory as of January 1, 2023.
3. Review all the entered details in the summary section and click ‘Pay Securely.’
4. Complete the payment through UPI, credit card, debit card, or another preferred method.

Once the payment is successful, your policy will be issued immediately.

When Should You Buy a Short-Term or Temporary Car Insurance?

The following are the likely scenarios where temporary insurance is applicable:

• Borrowing a friend's car
• Picking up a new vehicle
• Using a rented car
• Learning to drive
• Using a vehicle borrowed from a family member
• An owner of two vehicles but use only one frequently
• When you wish to sell a car soon after you buy it
• Using a vehicle briefly in another state for travel, business, or a job
• When you own a car but use it very less

The Coverage begins immediately upon policy activation and automatically ends on the specified date.

Eligibility Criteria for buying short term can insurance

To be eligible for short-term car insurance, you must meet the following criteria:

• Be at least 18 years old
• Have a valid driver's license
• Have a valid registration certificate for the vehicle you want to insure