Temporary car insurance is insurance that lasts between 1 and 28 days. This type of cover is important for motorists who need to be temporarily covered on another vehicle – those borrowing a car or driving whilst on holiday, for example. It protects one's no claims bonus in case of an accident. Motorists can simply and efficiently purchase temporary cover online.
Purchasing Temporary Cover
Just like one's annual insurance, motorists may buy third party only, third party theft and fire, or comprehensive temporary cover. Online insurers offer immediate quotes. Motorists may purchase policies that take effect immediately; websites allow them to download the policy documents or may directly e-mail them. Premiums are usually paid by the day via debit or credit card. On average, the cost of temporary cover is likely higher than equivalent annual cover. But this extra cost may be well worth it to protect one's no claims bonus in the case of an accident.
Details of Cover
All short term car insurance companies provides detailed documents that relate exactly what is and is not covered. Since third party only is the minimum legal requirement, every policy insures third party liability. They typically limit the indemnity level for damage or loss, perhaps to £40,000. All policies include an excess – the amount the motorist must pay out of pocket before the insurer will cover anything. This excess may be anywhere from £250 to £500, depending on the motorist's individual risk factors. The policy may also include cover for personal belongings, temporary breakdown cover, and so on. Some policies allow motorists to designate a second driver.
Insurers may impose certain restrictions
on motorists who purchase
a policy. Policies may include
restrictions such as limiting where a vehicle can travel, other
motorists allowed to drive, among many others. For example, policies
usually contain a list of allowed uses of the vehicle – social,
pleasure, and so on – whilst noting that all other uses are
excluded. In this vein, when applying for temporary cover, motorists
must provide full and accurate information. It's self-defeating to
purchase temporary cover, neglect to include business use, for
example, and then get into an accident whilst using it for business.
In such an example, the accident would not be covered by the
insurance and the motorist could be facing steep consequences.
Short Term Car Insurance
When Will It Be Needed?
Short term monthly plans may be useful for those who don't drive often, but need more than the 28 days allowed in temporary policies. A typical example is when students return for summer holidays. Parents might want to purchase short term cover for them, but temporary cover is too limited. After 28 days, there is a required 15-day waiting period before one may purchase another temporary policy on the same vehicle. In such a case, it's better to get a monthly policy that can be deactivated after a few months. Monthly policies might also be helpful for motorists taking long trips and planning to drive a different car for several months. Essentially, short term policies give motorists flexibility.
The policy details of short term cover are similar to those for other types of cover. Motorists can choose amongst third party only, third party theft and fire, or comprehensive. Policies may include breakdown cover, legal cover, and so on. Motorists may be able to add other named drivers to the policy, though there may be age restrictions. Generally, payment is made via debit or credit card. Often there is a monthly instalment fee as well as an initial arrangement fee. At the end of each month, insurers send a notice of impending expiration of the policy. If one wants to cancel the policy, he or she must give the insurer notice, usually around 5 to 7 days prior to the automatic renewal date. For full policy details, motorists should read the documentation on insurers' websites.
Distinct from 'Pay as You Drive'
Another type of insurance available is called 'pay as you drive' cover. This is separate and apart from short term, monthly, pay as you go cover. Pay as you drive plans track a motorist's actual mileage, calculating premiums based on the time of day and extent of use. These plans have been aimed at younger drivers, offering cheaper cover than otherwise available whilst also encouraging them to drive less at the most dangerous times. Plans are akin to mobile phone plans where people pay more for use at peak times. These plans are not short term cover, however. They replace the annual insurance cover for those who choose to adopt them.
Still want to have a yearly policy, but short of ready cash? You may want to take a look at monthly car insurance policies!