Insurance can shield you on the road, but long-term insurance coverage may not always be required. A temporary car insurance policy could be the better option if you only need protection for a short period.
However, many insurers offer payment schemes that permit policyholders to spend monthly, and you can withdraw your policy early if you don’t need it anymore. So, if you are not looking for insurance for a longer term, short-term plans are best and beneficial too.
Let’s dive deep into this article to learn detailed information about temporary car insurance policies and how they benefit people.
What is Temporary Car Insurance?
A temporary or short-period car insurance policy offers coverage for a limited duration. It is temporary in nature and can be short as a few minutes or as long as months. It’s best for those not looking to buy a car insurance plan for one year; they can select temporary insurance.
Temporary insurance comes in conveniently; if you buy a new car in the middle of your current policy and want to keep your policy the same mid-year, then monthly car insurance is a deal. If you want to buy monthly car insurance. In that case, you are required to provide personal details, including name, profession, gender, age, driving license, address proof, and car details like engine capacity, model, features, seating capacity, etc.
Benefits of Temporary Car Insurance
You can select a temporary or a short-term car insurance policy for one, six, or nine months per your needs. In a short-term policy, you comparatively pay a lesser monthly insurance cost than a standard insurance policy with a long duration.
Here are the benefits of having a short-term insurance policy:
- Best for those who have numerous cars and use one significantly less frequently.
- Instant insurance coverage
- Coverage against injury to third party
- Third-party property damage coverage
- The fully customized coverage period
- Option to purchase a policy for a minimum of 30 days before its beginning date
- Accidental damage and personal accident cover for the driver
- Gives peace of mind to policyholders and 24/7 customer support
Types of Short-Term Car Insurance
Temporary or short-term car insurance coverage is less exhaustive when compared to full-fledged car insurance policies. In a comprehensive insurance policy, the policyholder is protected against the robbery of the car, damages to the insured car, damages due to fire or accidents, etc. However, the scope of temporary car insurance is minimal.
Here are the types of short-term insurance policies:
- GAP Insurance
- Rental Car Insurance
- Non-owners insurance
GAP Insurance
GAP insurance for cars bought on loan or lease requires the car to be financed by a third party. Here the insurance company will compensate for the market value of the car. If the loan amount exceeds the market value, Gap Insurance will pay the balance to close the loan on the policyholder. This type of insurance gets started in case of total loss that is damaged beyond repair.
Rental Car Insurance
A Rental Car Insurance policy covers a rental car and generally considered accidental damage, injuries, etc. This type of insurance is separate from personal car insurance; the objective of an insurance plan is to protect the policyholder from the expenditures that emerge in repairing or replacing the damaged part. The coverages provided by the rental car insurance are third-party liability insurance, Collision Damage Waiver, and theft cover. Additionally, the insurance coverage relies upon the geographical location of the rented car.
Non-owners insurance
Non-owner insurance is similar to rental car insurance but is mainly offered to private cars. This type of insurance is a liability policy for folks who don’t own a car but need car insurance, such as a person who often rents cars or someone who is required to show evidence of car insurance. For instance, a person will purchase non-owners insurance when renting a car from a relative or a friend.
When and Why to Buy a Temporary Car Insurance Policy?
Temporary car insurance policy provides coverage against numerous liabilities such as calamities, accidental damages, personal accidents of the driver, etc., and financing safety against damage from natural disasters and artificial calamities. Choosing a short-term policy over a full car insurance policy can be done in certain special situations.
Here is the list of situations in which short-term policy is helpful:
- Using rental car
- When leaving to drive a car
- Drivers with less driving experience
- Using a car in another state for travel or business
- Driving a personal vehicle borrowed from a family or a friend
- When you wish to resale a car soon after purchase
Conclusion
In conclusion, temporary car insurance is the best possible track to any financial liabilities when using a car for a short term. You can make helpful usage of the short-term or monthly car insurance plan for successfully protecting your vehicle.
This article was originally published on Medium.com.
