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What is Temporary Car Insurance in the UAE?

Written by Ahmed Shabbir

What is Temporary Car Insurance in the UAE?

Temporary car insurance is also known as short-term car insurance. It offers highly flexible coverage that gives you financial safeguard against various contingencies. This type of insurance is temporary and can prolong from a few minutes to a few months for some specific time duration. 

Temporary-Car-Insurance
Temporary Car Insurance

How does Temporary Car Insurance work?

Temporary Car Insurance comes into play when a person needs car insurance for some specific period for a particular purpose. For instance, a driver who is learning how to drive a car needs car insurance for some particular period to get a driving license. Sometimes you’re relocating or renting a car for some trip like CDW Insurance; then, you might need short-term car insurance for that particular time duration. You might need short-term car insurance for a day to a couple of months to fulfill your purpose. 

This type of car insurance covers the financial liability in damages due to a car accident. You must follow the same process as a comprehensive insurance policy or third-party car insurance. Immediately, call the police after an accident, take pictures and copies of every document to repair the damages, and present these documents to the temporary car insurance companies for a claim. 

The temporary car insurance company will assess the damages and then make the payment for the repair of the damages. It will benefit from covering the risk of financial liability due to the car accident.

To whom Temporary Car Insurance is the most suitable?

Temporary Car insurance is suitable for the person who wants to cover the financial liability risk for some short period. For instance, if a person is staying in UAE for a couple of months, then they don’t need to buy comprehensive insurance for the whole year. He has to calculate the duration of his stay in the Arab Emirates and purchase cheapest temporary car insurance for that particular period.

Benefits of Temporary Car Insurance

Benefits-of-Temporary-Car-Insurance
Benefits of Temporary Car Insurance

You can easily get temporary car insurance for a short time, starting from one day to a couple of months. Short-term car insurance is less expensive than traditional car insurance for 13 months in UAE. It also offers many benefits, as mentioned below:

  • Personal accident cover for driver
  • Accidental damage cover 
  • Immediate insurance cover
  • Third-party insurance cover
  • Ensure your peace of mind
  • Purchase insurance policy 30 days before the starting date
  • Affordable rates for short term coverage

What is the best time to opt for temporary car insurance instead of traditional comprehensive insurance?

Temporary car insurance offers financial liability coverage arising due to human error or natural calamities and gives cover to the personal accident of driver, accidental damages, and offers third-party cover. You can opt short-term insurance option if you may come across the situation(s) mentioned below:

  • Learning how to drive a vehicle
  • Driving a rented car
  • Driving someone else’s car for some time
  • When your vehicle is not in good condition to go and need another vehicle
  • When you’re ridesharing with someone else
  • Borrowing a car from a friend who doesn’t have a car insurance policy for some specific period

Inclusions:

If you opt for a Temporary car insurance policy, it will include the following:

  • Collision cover
  • Roadside assistance
  • Theft and damage cover
  • Personal accident cover for driver
  • Third-party damages and bodily injuries
  • Medical cover for personal injuries
  • Coverage of damages due to natural calamities
  • Vehicle damage coverage

Exclusions:

If you opt short term car insurance policy, it will not include the following:

  • Vehicle damage due to drink and drive
  • Vehicle damage due to car racing
  • Intentional damage to the car
  • Damage to electrical equipment
  • Damage due to car rollover

Things to consider for purchasing Temporary Car Insurance

We recommend you consider these things in your mind when you’re buying the temporary car insurance:

  • Research insurance companies provide temporary car insurance because not all companies provide this insurance.
  • Compare various insurance quotes online to get the best deal.
  • Calculate the total cost of the insurance, including premium and deductibles. And check if any prepayment is required or not.
  • Evaluate what is covered under the purchased temporary car insurance policy.
  • Select the car insurance policy that best suits your needs and situation.
  • You may approach BuyAnyInsurance to get the best advice for Temporary car insurance.

Frequently Asked Questions about Temporary Car Insurance

What are the requirements for temporary car insurance?

The requirements for temporary car insurance are as follows:

  • The age of a person must be greater than 18 years
  • Possess a valid driving license in the UAE
  • Possess a learner’s driving license, if applicable, along with a permanent driving license holder sitting together while driving
  • In case the car has been borrowed, then the age must be greater than 17 years

Is there any impact of temporary car insurance on no claim benefit?

There is no impact of temporary car insurance on no claim benefit, and the car owner can still avail of the no claim benefit on his long-term car insurance policy.

Is it possible to get a one-month car insurance policy?

Yes, you can get a one-month short-term car insurance policy in the UAE. Some insurance companies in the UAE offer short-term car insurance policies.

Conclusion:

Temporary car insurance also known as short-term insurance or day care insurance is best suitable for short-term purposes like practicing for a learner’s driving license, renting a car for a trip, borrowing a vehicle from a friend or relative for some specific time duration, etc. It is recommended to get a temporary car insurance policy that is less expensive than a comprehensive car insurance policy. We recommend you consult your situation with BuyAnyInsurance and compare insurance policy quotes to get the best deals that best suit your situation.

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Originally published Mar 15, 2022 19:14:09 PM, updated Mar 15, 2022

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