Short term car insurance is a type of car insurance policy that is available for a short duration or a temporary tenure. Most motor insurance providers offer a vehicle insurance policy for a tenure of one year, three years or sometimes five years. However, the short term car insurance policy revolves around time duration of as low as one-day car insurance can extend for up to a one-month or 3 months car insurance policy.
If you are not looking to buy a four-wheeler insurance policy for an entire year and want to go for a short-term option, you can select short-term car insurance. Although short-term car insurance is rare in India, it is very popular in foreign countries.
A short-term car policy, or more commonly, temporary car insurance, came into the picture when the requirements of insurance became time-bound and limited. It is required when the car owner does not need insurance for a long period of time.
You must have a strong reason to buy a short-term car insurance policy. Driving a rented car for some time, relocating to a new city, driving for a short distance, and learning to drive are some of the cases wherein you can purchase short-term insurance.
In all these examples, you do not need a car policy for more than 12 months. This means that your requirement for vehicle insurance can range from a few hours to some months. Therefore, in all these cases buying a short-term car insurance policy makes complete sense.
Generally, you have to provide the following information to the insurer to buy a short-term motor insurance policy:
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The coverage of a short-term car insurance policy is not as exhaustive as compared to a comprehensive car policy. Although the scope of short-term insurance for car in India is very limited, it is available in the below-mentioned types:
If the amount of the loan is more than the Insured Declared Value (IDV) or its market value, then this type of short-term insurance pays the balance amount for closing the loan on the insured.
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You can choose to buy a short-term car insurance policy for one month, six months, or nine months as per your requirements. In this type of car policy, you comparatively pay a lesser car insurance price every month as compared to a standard insurance policy with a longer duration. The benefits of having this type of motor insurance policy are:
Temporary car insurance plans provide insurance coverage against various liabilities, such as natural disasters, accidental damages, personal accidents of the driver/owner, etc. The policy also provides coverage against financial losses that arise out of manmade calamities.
You can opt for a temporary car insurance car policy over a yearly motor insurance policy in some specific situations. These situations are:
Now that you know much about a short-term four-wheeler insurance policy, you can make good use of this type of monthly car insurance policy for safeguarding your vehicle. This is the best way to avoid financial liabilities when using a car for a short duration.
However, you must remember that this type of motor insurance policy is only available with some vehicle insurance providers. You must do thorough research to find an insurance provider offering short-term or temporary car insurance in India.
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