Let’s try to understand temporary car insurance and subsequently delve into why you may need it.
What is Temporary Car Insurance?
Temporary car insurance is a type of vehicle insurance policy that provides coverage for a brief period. It differs from the usual car insurance policies valid for one, three or five years. This car insurance policy can range from a single day to a few months, depending on the policyholder’s needs.
Let's look at some benefits of a temporary car insurance policy highlighted below.
It is flexible and convenient. You can buy it online and activate it instantly.
It is cheaper than buying a long-term car insurance policy, as it only covers the period when the vehicle is in use.
Some of the types of temporary car insurance policies available in India are:
- Rental car insurance: This provides coverage for rental cars against damages due to accidents, man-made calamities, accidental injuries, etc.
- Gap insurance: This policy covers the difference between the market value and the loan amount of a car you bought on loan or lease.
A temporary car insurance policy is rare in India but popular in foreign countries.
When and why to Buy a Short-term Car Insurance Policy?
Here are some situations when buying a short-term car insurance policy makes sense:
- Short-term insurance can protect you from unexpected accidents or damage when borrowing or renting a car for a short period.
- It is a practical choice for visitors or tourists who require insurance while driving a rental car in a foreign country.
- Short-term insurance offers immediate coverage for your peace of mind if you plan to test drive a vehicle before making a purchase.
- When your regular policy is about to expire, but you have not renewed it yet, short-term insurance can bridge the gap until you secure long-term coverage. Consider this option if you only use your car sporadically, avoiding the cost of an annual policy when you rarely drive.
- During situations like moving or transporting a vehicle, short-term coverage ensures your car remains protected for the task’s duration.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the relevant industry. It is advised to verify the relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.