A Guide To Short Term Car Insurance

Short Term Car InsuranceThere are times when insuring a vehicle on a yearly basis may not be the best option. When this type of situation arises short term car insurance, or temporary car insurance, can provide a valid alternative to a traditional annual auto policy. There area number of reasons that someone may want to consider short term cover for their car. These include:

  • Borrowing the vehicle of a friend
  • Hiring a car
  • Having visitors staying with you that will be using your car
  • Lending a car to a relative or friend
  • Buying a new car and wanting to be insured before driving away from the dealership but not having a chance to secure an annual policy

How Temporary Vehicle Cover Works

Before considering a short term auto policy, it is good to know exactly how this type of policy works. A temporary policy can provide coverage for a single day or up to 28 days. Short term cover can be taken out separately without affecting the cover of your current policy. This means that if you need to borrow a friend or relatives car for even as little as one day, you can be covered by a short term policy.

You may be wondering why someone wouldn’t just want to add the person borrowing the car to their existing policy, which seems like a valid option. The reason this is not always the best option has to do with your no claims bonus. By adding a relative or friend to your current policy you run the risk of having your no-claims bonus wiped out.

In the event an accident does take place, by having short term cover your existing annual policy will not be affected, thus keeping your no-claims bonus intact.

Advantages of Short Term Vehicle Cover

The majority of temporary insurance polices provide comprehensive coverage. This type of policy provides the advantages of having instant coverage, being easier and quicker to obtain than adding another insured to an existing policy, and posing less of a risk to the standard policyholder.

There are many short term cover insurance companies that can provide the policy quickly either over the phone or online. This means the person needing the cover will be able to start driving right away without having to wait for an existing policy to be modified.

Things To Consider When Taking Out A Short Term Auto Policy

Cover can range from 1 day to 28 days, so you should be sure to obtain a policy that will cover the number of days the car will be used for. It is recommended to question the provider of the insurance about the possibility of taking out another policy if cover is still needed after the term of the policy has ended.

Although this type of coverage is usually available to anyone with a UK license, there are a number of companies that require the insured to be at least 23 years old. Many providers also require that the person being insured must have had a valid drivers license for at least one year. While many companies that provide this type of cover will insure people with European licenses, you should always confirm this with the provider prior to taking out the policy. It is also rare that a company will cover a driver with an Australian, Canadian, or United States drivers license.

While the premium of the policy should be less for those who have a good driving record, the type of car being insured will also have an impact on the cost of the policy. High performance vehicles will result in higher premiums. As with a normal auto insurance policy, the location will also have an impact on the premium. Other factors that could effect the premium include previous insurance claims, disqualifications, and penalty points.

While this type of policy normally tends to start at around 10 pounds per day, the factors mentioned above will have an effect on the actual premium. European cover will generally result in about a 20 percent increase in the premium.