Purchasing car insurance usually involves a long-term financial commitment. But what if you need coverage for your vehicle only for a short while?
With reputed insurers in Canada rolling out car insurance short-term policies, you can even insure your car for a few minutes.
Not many car owners vouch for these policies.
However, you might come across a situation where a short-term car insurance would be affordable. Insurance brokers at reputable brokerages like Surex can recommend the best short-term policies to secure your car — visit this site to know more.
Think of a situation where you would be selling off your car just after a few months of buying it. Or you might be moving to a new province temporarily and need to use a car.
These are typical circumstances when automobile owners vouch for short-term car insurance policies.
What is a short-term car insurance policy for drivers in Canada?
Short-term car insurance is a temporary policy to cover your car. As the name suggests, drivers can benefit from the policy’s provisions for a short period. This can range from just one hour to a few months.
Traditionally, your automobile insurance policy would cover the vehicle typically for a year or more. However, you might need car insurance for a shorter duration. Here are some instances where a short-term car insurance policy would come in handy.
- Visitors in Canada often purchase a car and use them for a few months rather than renting one. In these situations, purchasing temporary insurance proves to be cost-effective.
- In case you are learning how to drive a car or rent a car once or twice a month, you would need these policies.
- Suppose you have rented a car to enjoy your vacation. In this case, you can get a temporary car insurance policy rather than paying for the entire year.
- Occasional drivers who hardly hit the road throughout the year might find a temporary policy ideal.
- When the ownership of a car is transferred, you may have a short-term license plate. In this case, too, you can purchase a temporary insurance policy.
How does short-term car insurance work in Canada?
If you have been thinking, “Can I get short-term car insurance in Canada?”, the answer is yes.
Let’s understand how automobile insurers roll out these schemes. Temporary car insurance works just like standard automobile insurance. However, the duration of the policy becomes bound by a short period.
In case you are not sure whether to vouch for temporary car insurance or go for a regular one, make sure to seek a professional opinion. Experts at Surex can help you decide on the policy, depending on your requirements.
Unless you have a strong reason to get a temporary policy, you should go for permanent coverage. So, if you are learning to drive, occasionally rent a car, or plan to move to a new city for a few weeks, temporary insurance might work for you.
Automobile insurance companies generally ask for the following details while insuring your car temporarily.
- Your details, including name, address, gender, age, and profession.
- Your driving history and claims record.
- Address proof.
- Particulars of the car you would be insured, including engine capacity, make, model, fuel, and seating capacity.
Different types of short-term car insurance in Canada
Compared to a full-fledged car insurance policy, a short-term policy is not that comprehensive. With a traditional policy, you would be secured against perils like carjacking, third-party liabilities, and damages caused by natural calamities or fires.
However, short-term car insurance policies come with a limited scope. Here are the broad categories of temporary car insurance schemes you can purchase in Canada.
1. Rental car insurance
As the name suggests, this temporary car insurance policy would come in handy while you use a rented car. In case of accidents, you can file a claim for injuries and physical damages.
2. Gap insurance policy
In case you have purchased a car on loan or acquired it on a lease, you would need a gap insurance policy. When a third party finances the vehicle, gap insurance becomes necessary.
The policy’s benefits get activated in case of total damage or loss of the car. The insurer, in this case, would provide compensation equivalent to the car’s market value. In case the loan amount exceeds the market value, the gap insurance policy would make up the remaining amount for closing the policyholder’s loan.
3. Non-owners’ insurance
This type of short-term car insurance policy shares some similarities with rental insurance. However, only private cars come under non-owners insurance policies. For instance, if you are borrowing your friend’s car, you might get this policy for the duration when you use the vehicle.
What are the benefits of a short-term car insurance policy?
You can customize a short-term car insurance policy based on the specific requirement window. It can be as short as two hours or stretch up to ten months. Usually, the insurance premium is lower than what you need to pay for a longer coverage tenure.
Have a quick look at the prime benefits of a short-term car insurance policy.
- Instant coverage is available right from the moment you start using the car.
- You would remain protected against third-party injuries.
- The package would cover property damage for third parties.
- You remain secure against accidental damage and personal injury.
- One can customize the duration of the coverage as needed.
Car insurance short-term policies — Endnote
With maximum flexibility and affordability, car insurance short term warrants optimal peace of mind. However, take care not to let the car insurance policy lapse, even if it is temporary. Insurers would consider you a high-risk client, making it challenging for you to obtain affordable policies in the future.
Even if you are driving for recreational purposes once a month, it would be wise to have temporary coverage. Experts at Surex can help you choose a short-term car insurance policy. This way, you can benefit from the maximum coverage by shelling out the minimal cost.
