Over the past few years, the insurance industry has undergone many transformations. With changing needs of the customer, insurance companies keep introducing new plans and products. One such innovation has been temporary car insurance. If it’s time for your car insurance renewal or if you are looking for short-term coverage, temporary car insurance might be the right choice for you. Read on to know more. 

What are Temporary Car Insurance Plans

Insurance protection is offered for a brief period with temporary auto insurance. Given its transient nature, short-term auto insurance’s duration of coverage can range from 1 to 9 months. You can select short-term or temporary cover insurance when you are not looking to purchase a regular car insurance plan that traditionally lasts for one year.

The two primary policy types that are typically offered in India for insurance coverage are third-party liability and comprehensive insurance plans. You can purchase add-ons to increase coverage and receive additional benefits if you choose to purchase a comprehensive policy. However, purchasing at least a third-party policy is required by law and offers you the absolute minimum level of protection. Temporary car insurance can offer all this, but for a shorter time period. If you are interested in buying a car insurance policy for a very limited tenure, you should opt for a temporary car insurance policy.

Highlighting Features and Benefits of Temporary Car Insurance

Read the following features and benefits that you will get from the temporary car insurance:

• You will get instant coverage for your car within minutes
• It fulfils the mandatory requirement of third-party coverage for your car
• The minimum tenure of the policy is 30 days
• You have to pay a lower premium amount in comparison to the long-term car insurance policy
• It provides you with coverage for accidental damages
• It assures the financial security of your family in case of a mishap
• At the end of the tenure of your policy, you can extend it as per your choice.

Types of Temporary Car Insurance Plans

Temporary car insurance is a short-term car insurance plan, that broadly consists of three types:

1. Rental car insurance:
   If the car is taken on rent, then, the policyholder can get coverage against accidents and damage for a short tenure. In this case, temporary car insurance is the best option as it can be taken for a period of 1 month to 9 months. At the time of car insurance renewal, the policy’s period can be extended as per choice.
   
2. Non-owner car insurance:
   If the car has been taken/ borrowed by any friend or family member for a limited period, temporary car insurance is offered to the policyholder by the company.
   
3. Gap car insurance:
   Gap car insurance is for vehicles that are on loan/ lease and gets activated if the car is damaged beyond repair. In such a scenario, the insurer compensates for the balance amount. 

Who Should Opt for Temporary Car Insurance Plans?

Temporary car insurance comes with a long list of benefits. You can choose it and save money by paying less amount of premium for a short tenure in case:

• You are learning how to drive
• The car has been taken on rent in a new city
• The car has been borrowed from any friend or relative
• You are looking for a buyer of your car and want the insurance policy for a temporary period
• You have temporarily borrowed the car for business/ leisure purposes. 

Things to Remember When Buying Temporary Car Insurance

Looking for some tips and tricks to make the most of your temporary car insurance? Here are some points to consider:

• Look for the best price in the market. One easy way to find the best price is to compare different plans online
• Pick a plan that can offer quick claim settlement through minimal formalities involved. In select plans, you can get 3-day repair services
• Choose a company that can offer a high claim settlement ratio
• Plans with wider coverage at affordable rates can yield you maximum benefits.