Short Term Car Insurance Plans – All You Need To Know

Short Term Car Insurance Plans
Short Term Car Insurance Plans

Here is a brief guide to help you comprehend short-term vehicle insurance plans in India that are dependable and trustworthy. Look at this. Short Term Car Insurance Plans

By covering their four-wheelers under a variety of covers, long-term auto insurance policies provide automobile owners with a long-term commitment. Short-term plans are also highly helpful if one is not seeking for a longer-term insurance policy. These days, a lot of insurers in the nation provide short-term auto insurance policies, which we will examine in this blog post.

A Quick Walkthrough on Short Term Car Insurance Policy

Let’s begin by explaining what short-term vehicle insurance in India means.

These are plans to cover your car temporarily or for brief periods of time. Although standard auto insurance policies have a maximum tenure of five years and a minimum tenure of one year, short policies have a maximum tenure of a few months and a minimum tenure of a few minutes, depending on the policy and the precise need.

You can get these short plans for brief periods if your need for auto insurance is transient and you don’t want to squander money on a long-term coverage. These programmes, which are popular among Western auto owners, are now becoming popular in India.

Functioning of Short-Term Car Insurance – How do they work? 

The people who can gain the most from these short-term vehicle insurance policies are those whose need for auto insurance is restricted for any particular cause or is time-limited. These brief plans, also referred to as temporary car insurance policies, are ideal for customers who do not require long-term automobile insurance coverage for a variety of reasons, such as;

  • If you are driving a rented vehicle for a short duration of time
  • If you are moving to a new city
  • If you are a learner and trying your hand in driving car

In any of the aforementioned scenarios, short-term automobile insurance can be purchased to meet your specific needs because these demands are temporary, lasting only a few days or months, and do not call for a full-year policy. Therefore, in such circumstances, it is preferable to choose the 3-month short-term auto insurance coverage.

The following details must be provided to the insurance company when purchasing a temporary auto insurance policy:

  • Your personal details like name, address, gender, profession, etc.
  • Documents of identification such as driving license.
  • Documents for proof of address
  • Car details like engine capacity, make and model of the car, fuel type, seating facility etc.

Various Short-Term Car Insurance Plans Available

Despite the fact that short-term auto insurance policies have specific uses, their coverage is constrained and not as comprehensive as that of comprehensive plans. Here are a few categories of temporary vehicle insurance policies:

  1. Rental Car Insurance – Under this plan, the insured can avail short term coverage for a car that he/she has rented for a particular duration to cover damages against accidents, injuries due to accidents, etc. in a rental car.
  2. Non- Owners Insurance – This plan is similar to a rental insurance plan. However, this plan caters only to private cars by providing coverage to them. So, this plan will suit you if you have borrowed a car from a relative or friend for a short duration.
  3. Gap Insurance – These plans are available for cars that you buy on lease or loan and which are financed by another party. Here, the insurer reimburses for the market value of the car. This plan is made active in a situation when the vehicle is under complete loss with beyond repair damage. So, here if the amount of the loan is more than the IDV of the car, the Gap plan pays for the remaining amount to help close the loan of the policy owner.

Advantages of Short-term car insurance plans

Here are some key benefits:

  • You can avail these plans for durations of one or 3 month car insurance as per requirement
  • You can pay less premium cost as compared to regular policies
  • You also get instant coverage within minutes
  • These plans cover third-party damages of property and injury
  • They offer coverage for accidental damages
  • Allow personal accident cover to the one driving the car
  • You can customize the tenure of the policy
  • Allow you mental peace
  • You can buy a policy for minimum 30 days

When do you need a short-term car insurance plan

Below are the situations when you can buy a short term insurance plan

  • If you use a rented car for a short-duration in a new city where you are on vacation
  • If you are beginner at driving and learning to drive a car
  • If you have borrowed a vehicle from someone and using it for a short-duration
  • If you are looking at selling your car soon and want to insure it till the time you sell
  • If you are using a car for a certain period in a new city on work tour
  • If you do not have proper driving experience
  • If you use your car to drive across rarely

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