There are only a few drivers who opt for a temporary car insurance policy, although it sounds a little alien, temporary car insurance does exist. Not many are aware of this type of policy because in India, car owners always prefer an annual policy or long-term policy as it provides greater benefits unlike a temporary car insurance policy.
In India, there are very few insurers who offer this, again because of the limited popularity of the same. The short term policy may not be ideal for everyone, especially if you are not confident about your driving skills. So who should opt for temporary car insurance?
Temporary car insurance is generally available up to 6 months. If you are looking to buy a temporary car insurance plan, please know that there are few factors like city where you are driving, mileage you are achieving, speeding, time of driving, purpose, driving license, the car you are driving or want to drive, etc. that are taken into consideration by the insurance company. They are the deciding factors for the insurer to provide you with a temporary car insurance policy. The premium in a temporary car insurance policy depends on the above-mentioned factors as there is no fixed premium set by the IRDAI yet. If you opt to renew a temporary car insurance policy, the premium will be same even though you have not driven the car as much as you would like to. A temporary car insurance policy covers third-party liability, collision and damages, medical expenses if any, towing charges, and any minor loss due to mishaps.
This product is more popular in the western countries as people over there prefer to have insurance for every situation to save themselves from paying for any damage or loss personally. In India, this product is gaining popularity slowly but it is a long way to go before every insurer offers this kind of insurance. However, considering the amount of people who love traveling and the number of travel agencies and other holiday planners, and car rental services in India, it is only logical for the IRDAI to spread awareness on temporary car insurance or any type of motor insurance. When you travel from one place to another, especially in a rented car or borrowed car, no matter how safe you drive, there are chances for accidents or minor car damages. The roads in India are also not that driver-friendly, especially in hilly regions or even in regular cities. So having a temporary or short-term motor insurance plan will only provide you with peace of mind to enjoy the ride.
A proposal has been made to the IRDAI by many insurers to bring this product into the mainstream, but it is still under consideration. A few insurers offer temporary motor insurance cover within India. You can enquire about the same.