Secure your car at lowest premium

Secure your car at lowest premium


Temporary Car Insurance: Benefits, When & Why to Apply

By Neha Goyal

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In times of a pandemic, when you barely get out of your house, you would not like to pay high insurance premiums for something that’s just collecting dust. An auto insurance policy may not always be the right solution. Also, the choice of an insurance is totally dependant on your driving habits. If you need to get covered for a short period of time, then temporary car insurance may be a  be an ideal option for you. However, before you buy short term car insurance or temporary car insurance, it is important to understand how this insurance policy works, what are the benefits, what’s covered and what’s not.

What is Temporary Car Insurance?

Temporary car insurance offers coverage for a short period of time. It offers highly flexible coverage that financially safeguards the insured against several contingencies. Since this type of insurance policy is temporary in nature, the validity of temporary car insurance can be as less as a few minutes or as long as a few months. In a particular situation when a person is not looking out to purchase an auto insurance policy for a duration of 12 months, a short term car insurance becomes an ideal choice.

How Does Temporary Car Insurance Works?

Generally, car insurance coverage in UAE is limited to two major auto insurance policies. One is a third-party liability auto insurance policy and the other one is a comprehensive auto insurance policy. The tenure for a traditional car insurance policy is one year. If one chooses to opt for a comprehensive car insurance policy then he/she can also buy additional coverage by paying an extra premium to enhance the basic coverage. On the other hand, purchasing at least a third-party liability auto insurance policy is mandatory by the RTA law in the UAE and offers minimum possible coverage to the policyholder of the insured car.

Short term car insurance or temporary auto insurance comes into play when a person needs to drive a particular vehicle for a short duration. For instance, a driver doesn’t need a yearly auto insurance if he/she is learning to drive, rent a car or relocating. If the requirement ranges from a from few hours to months then buying temporary car insurance makes sense in such situations.

Though not all car insurance companies offer temporary car insurance  in the UAE. But still, you can search for an insurer that offers short term car insurance and enquire about the insurance coverage, cost, and other terms of the policy. Generally, the below-mentioned information is required while purchasing temporary auto insurance:

  1. Address Proof
  2. Driving license details
  3. Personal details such as name, age, address, profession, etc.
  4. Car details such as fuel type, engine capacity, seating capacity, make and model, etc.

Benefits of Temporary Car Insurance 

You can opt for short-term car insurance ranging from one month to nine months based on your requirement. In this type of auto insurance plan, the policyholder would typically pay less insurance cost per month in comparison to a traditional car insurance policy. The policyholder can enjoy the following benefits by purchasing temporary car insurance:

  1. Instant insurance coverage
  2. Accidental damage cover
  3. Coverage against third-party property damage and injuries.
  4. Personal accident cover for the driver
  5. Flexible coverage duration of the policy that can be customized as per one needs.
  6. Ensures peace of mind
  7. Affordable and better option to those looking for short-term coverage.
  8. Option to purchase the car insurance policy 30 days before the start date.

When & Why to Opt for Temporary Car Insurance?

Temporary car insurance offers coverage against various liabilities such as the personal accident cover of the driver, accidental damage, calamities and offers financial protection against damage arising out of natural or human reasons. One can opt for short term car insurance in some specific circumstances. Some of those situations are as follows:

  1. When using a rented car.
  2. When learning to drive a vehicle.
  3. When borrowing a car from your friend or relative who do not have an insurance.
  4. When driving someone else’s vehicle temporarily.
  5.  When you want to resale a vehicle soon after you purchased it.
  6. When your own vehicle is not usable.
  7. When you are travelling to another country & plan to drive while you are there.
  8. When using ride sharing or if you don’t own a four-wheeler but will be driving frequently.

Things to Know When Purchasing Temporary Car Insurance

If you think you will need short term car insurance ever in your life, there are some important things that you need to keep in mind before opting for one. First of all, remember that it is harder to find because not all car insurance companies in the UAE offer this type of car insurance policy. Thus, you may need to research to find the insurance companies that offer temporary car insurance. And then compare different short term car insurance quotes online to get an idea of the coverage options available in the market.

Always consider the total cost of policy. Look at the premiums & deductibles and also check whether the insurer requires any prepayment of monthly premiums or any type of down payment. Do not forget to check what is covered under the car insurance policy. After getting all the details in hand, choose one that suits your insurance needs.