On demand insurance: what is it, what is it for, and how can I purchase it?

Learn about on-demand insurance, including what it is, how it works, its benefits, and how to easily purchase coverage tailored.

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In today’s world, where technology is an integral part of our daily lives, the concept of convenience has expanded into various areas. The insurance market is no exception.

On demand insurance has emerged as a practical and flexible solution for those seeking personalized protection without long-term commitments. In this post, we will explain what on demand insurance is, how it works, what it serves, and how to hire it.

What is on demand insurance?

On demand insurance is a type of insurance that allows the user to purchase coverage temporarily, customized to their specific needs, based on the time or situations they want to be protected.

Instead of purchasing a traditional insurance policy with an annual or long term commitment, users can opt for coverage for a specific need that may last hours, days, or weeks.

This type of insurance is digital and accessed through online platforms, where users choose the type of coverage, define the duration of coverage, and pay according to usage.

What is on-demand insurance used for?

On demand insurance can be used in various situations, especially for those who need coverage for specific, one-time events. Some of the main uses include:

Travel insurance: Many people opt for travel insurance only for the period they will be away. With on demand insurance, it’s possible to cover health, luggage loss, or flight cancellation, only for the duration of the trip, without paying for months of coverage that won’t be used;
Car insurance by the hour or day: If you don’t use your car often, on demand insurance can be ideal. Instead of paying for an annual policy, you only pay for the time you used the vehicle, whether in a rental or for a one-time event;
Smartphone or electronic device insurance: For those who buy expensive gadgets and want to protect them but don’t want to pay for an annual policy, on demand insurance covers damage or theft for a specific period, like during an event or a trip;
Insurance for specific activities: Certain sports or activities, like renting equipment, outdoor events, or tourist activities, can be covered by on demand insurance, protecting the user during the time they’re exposed to risk;
Rental property insurance: People who rent out properties for short-term stays, such as on platforms like Airbnb, can purchase on demand rental insurance, providing protection for both the property and the renters’ belongings.

How to hire on demand insurance?

Hiring on demand insurance is simple and quick, and can be done entirely online. Here are the basic steps for hiring this type of insurance, first, you need to find a platform that offers on demand insurance. Many insurtech startups offer this service.

Researching reviews, comparing prices, and reviewing coverage conditions is essential to ensure you choose the best option.

After accessing the platform, the next step is to choose the type of insurance you need. Options can range from travel insurance to coverage for vehicles and electronics.

The main benefit of on demand insurance is the ability to personalize it. You can set the coverage duration, the insured amount, and sometimes even the extent of the coverage, such as the types of damages or risks you want to cover.

Once you’ve chosen the coverage, the next step is to define how long you want to be protected. It can be for a few hours, days, or weeks, depending on your needs. The price will be calculated based on the duration.

Most on demand insurance platforms offer online payment options via credit cards or other digital methods.

After filling in all the information and reviewing the offer, simply confirm the details and finalize the purchase.

Disadvantages and considerations

Although on demand insurance has many advantages, it also comes with some drawbacks. These include limited types of coverage and the need for careful research to ensure the policy meets your specific needs.

Additionally, the per-use cost may be higher in some cases compared to traditional insurance, depending on your usage profile.

Conclusion

On demand insurance emerges as a flexible and personalized alternative to traditional insurance, catering to those who want coverage for specific, one-time situations without long-term commitments.

Whether for travel, cars, electronics, or specific activities, this model offers convenience, savings, and control over when and how to protect yourself.

When hiring on demand insurance, it’s important to carefully research available options, ensure the coverage meets your needs, and pay attention to the platform’s terms and conditions.