Temporary Car Insurance

Temporary car insurance is ideal for those who do not use their car on a day-to-day basis, thus not needing to pay for yearly car insurance. This kind of car insurance offers you the comprehensive benefits of an annual plan, for a much shorter period of time. There are three primary types of temporary car insurance – gap insurance, rental car insurance, and non-owners’ insurance. Such insurance policies generally start at ₹2,072 per year and vary from insurer to insurer.

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How does Temporary Car Insurance Work?

A short-term car insurance comes in handy if you buy a new car in the middle of your existing car insurance policy, and do not wish to change your policy mid-year or if you borrow your friend or family member’s car for a short period of time. In case you are planning to take a car trip for a short period of time, and you do not have an existing policy, a monthly car insurance policy is ideal. It will offer all the benefits of a comprehensive car insurance policy. Now, it is relatively a simple process to get car insurance online. So, you can easily avail a policy that suits your needs. Temporary coverage premiums too depend on several factors like the car model, conditions, years of use, the owner, owner’s age, etc.

 

To buy monthly car insurance, the following information is necessary:

 

  • Personal details including name, profession, age and gender

  • Identification documents like claim history, driving licence, etc

  • Address proof

  • Car details like mode, make, engine capacity, seating capacity, features, etc

Types of Temporary Car Insurance

One month car insurance is comparatively less exhaustive than comprehensive car insurance policies. The scope of temporary car insurance is limited and is available in the following types:

1. Gap Insurance

This type of insurance is available for cars that are bought on lease or loan. A third party finances the car under this policy. If the car faces total loss or the damage is irreparable, the gap insurance policy gets activated. Insurer compensates for the market value of the vehicle and pays the balance amount of the loan, in case the car was bought on a loan.

2. Rental Car Insurance

This type of car insurance per month provides insurance coverage for rental cars. Damages due to accidents are covered in such types of policies.

3. Non-Owners Insurance

This policy is similar to rental car insurance but here the insurance is covered for private cars. Suppose you are borrowing a car from your relative or a friend for one month, you can avail this policy to insure it for the time it is with you.

Benefits of Coverage Offered

Check out the benefits you can avail, if you decide to buy temporary car insurance.

  • Ideal if you have two cars and you use one very less frequently

  • Instant insurance coverage

  • Third party property damage coverage

  • Coverage against injury to third party

  • Personal accident coverage for driver

  • Fully customised coverage duration

  • Option to buy a policy for a minimum of 30 days before its start date

Here is a list of temporary car insurance plans and their features available on Bajaj MARKETS.

 

Bajaj Allianz General Insurance Policy

Acko General Insurance policy

HDFC ERGO General Insurance policy

Category

Temporary

Temporary

Temporary

Price

Starts at Rs. 2999/year

Starts at Rs. 2094/year

Starts at Rs. 2094/year

Insured Declared Value

Depends on the make and model.

Depends on the make and model.

Depends on the make and model.

Coverage

Personal Accident Cover, Third-party Property Damage, Third-party Injuries

Personal Accident Cover, Third-party Property Damage, Third-party Injuries

Personal Accident Cover, Third-party Property Damage, Third-party Injuries

Tenor

30 days

30 days

30 days

Premium

Depends on the make, year and model.

Depends on the make, year and model.

Depends on the make, year and model.

Personal accident cover

Available

Available

Available

Claim settlement

98%

95% for FY 2020-21

99.8% for FY 2020-21

Key replacement cover

Not included

Not included

Not included

No claim bonus cover

Not included

Not included

Not included

Depreciation protection

Not included

Not included

Not included

Engine protect cover

Not included

Not included

Not included

Roadside assistance

Not included

Not included

Not included

Consumable expenses

Not included

Not included

Not included

Claim registration process

Digital

Digital

Digital

When and Why to Buy a Short-Term Car Insurance Policy

One month car insurance plans provide insurance coverage in case of accidental damages, natural disasters, personal accidents, etc. Financial losses that incur due to man-made disasters are also covered under this policy. You should choose the best temporary car insurance policy for a full coverage under specific situations like:

  • If you are using a rented car.

  • If you are a beginner and only learning to drive

  • If you are a driver who has less experience of driving.

  • If you own a car but it is used at a relatively very low.

  • If you are using a borrowed private vehicle from a relative or friend.

  • If you have two cars and you frequently use only one.

  • If you have to use a car for a short term in some other state for travel or business or job.

  • If you want to resell your new car soon after its purchase because of an emergency.

     

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Conclusion

A temporary car insurance is the best possible way to avoid any kind of financial liabilities when you are using a car for a short term. You can make good use of this type of monthly car insurance plan for successfully safeguarding your vehicle. However, you should be informed that this type of car insurance policy is not offered by all vehicle insurance providers. Before availing one, you should do a thorough research to find out an insurance provider that offers such short-term or monthly car insurance policies. So make a note of your needs and make an informed decision!

Check Out Car Insurance Plans Available at Bajaj Markets

 

FAQs on Temporary Car Insurance

  • ✔️When would I need 1 Month Car Insurance?

     Month Car Insurance would come in handy when:

    • You hire a driver on a temporary basis for a few days.

    • You buy a new car in the middle of your existing car insurance policy, and do not wish to modify your policy mid-year.

    • You do not have an existing policy and wish to take a short trip using your car.

    • You borrow your friend’s or family’s car for a short duration of time.

  • ✔️Why should I opt for 1 Month Car Insurance?

     You should opt for a 1 Month Car Insurance because it-

    • Offers all the benefits of comprehensive car insurance

    • Is cost-effective

    • Gives the necessary coverage without having to spend a lot of money on it

  • ✔️What are the benefits of buying a 1 Month Car Insurance?

     Buying a 1 Month Car Insurance has a range of benefits, they are:

    • If you have 2 cars, of which you do not use one frequently, a 1 Month Car Insurance will help cover the latter.

    • It is ideal when you are learning to drive in a vehicle that is not yours, or not frequently used.

    • If you are unsure of the policy you wish to ultimately purchase to protect your car.

  • ✔️Can I add multiple cars to a Temporary Car Insurance?

     Yes, some insurance companies do allow you to add multiple cars to a Temporary Car Insurance. However, the cost of the policy will increase with the addition of each new car.

  • ✔️Is it necessary to inform the existing insurance company if short-term insurance is not bought from them?

     No, in this case, it is not necessary to inform the existing insurance company if short-term insurance is not bought from them.