This concept is new for India, but it is quite popular in the US and UK. As a part of these plans, the individuals can purchase temporary car insurance for one to 28 days. Although the features and benefits are similar to the general car insurance, it is the duration of the policy that makes it unique. In this concept, it is necessary to get permission from car owner for getting temporary car insurance.
When to Buy Temporary Car Insurance?
There are a lot of instances and situations when temporary car insurance can be used. Some of these include:
- For those using luxury or vintage car as their second car, this type of insurance can become handy. These individuals can purchase short term insurance for the time they use second car.
- Individuals, who are learning to drive, can use this insurance during their driving lessons. In fact, they require this insurance more than others, as chances of accidents are a bit higher when one is learning to drive.
- If someone is a young driver, chances are she/he is not having his/her own car. These young drivers can use the cars of friends or relatives by buying a short term policy.
- An individual, who has purchased a new car but still is confused on which policy to purchase, can rely on short term insurance. It gives him/her a time to choose the best car insurance policy available in the market.
- These policies can also be purchased when a policy has been expired, and individual plans to buy policy from another insurer.
Benefits and Features of Car Insurance Policy
The already existing policies in various countries offer some common benefits, which include:
- Legal liability for third-party damage, which includes bodily injury or death of another individual
- Legal liability for damage to another individual’s property is also included
- Several policies also offer cover for dents, scratches, alloy wheels and misfuelling
- Immediate cover is offered with 24×7 support
- Personal accident cover is also a part of most policies
- Damage to the car due to theft, vandalism, fire or natural calamity
- Cheaper version of car insurance
These benefits and features vary from insurer to insurer.
Types of Temporary Car Insurance
Temporary car insurance is a broader term. There are numerous types of temporary insurance based on the situations and needs.
As the name suggests, it is a type of policy for individuals who don’t own a car. These individuals can make the use of this insurance while borrowing the cars from others. Therefore, the car drivers need not fear of damages due to an accident if they are using their friend’s, neighbour’s or relative’s car.
This is also a policy for those who don’t have a car. In this concept, rental companies offer insurance or additional coverage. The coverage includes personal accident insurance, liability, loss-damage waiver, etc. A lot of individuals prefer buying these policies directly from insurance companies rather than rental service providers.
Also known as guaranteed auto protection, gap insurance covers the difference between the depreciated value of a vehicle and what an individual owes on the auto loan in case the repairing cost of a car is more than the worth of car.
Temporary Car Insurance in India
Currently, no insurance company is offering temporary car insurance in India. It is also a possibility that companies believe that Indian consumers are not ready for this type of concept.
If a company starts providing short term insurance, it can enjoy huge profits due to a monopoly in this domain.
Additional Reading: Top 5 Motor Insurance Companies in India