If you’re in need of flexible car insurance without the commitment of a full annual policy, temporary car insurance could be just the solution. To find out more about how it works, when you might need it, who’s eligible and how you can save, check out this video guide answering all your temporary car insurance queries. What in temporary car insurance? Temporary or short term cover is a type of car insurance that insures your car for a limited time only.
Typically, this can be for any time between 1 and 28 days, although some providers will even cover you for periods as short as 1 hour up to several months.
Most short term policies offer fully-comprehensive cover as a standard, so you’d need to shop around for third party only or third party fire and theft cover options.
When would I need temporary cover? There are a number of reasons you might require short term cover, but here are five of the most common situations:
1. If you’re headed off on a long drive or road trip and want to share the driving. In this case, temporary car insurance could be a cheaper alternative to adding a bunch of named drivers to someone’s annual policy.
2. If you’re borrowing a friend’s car because you’re back from uni or moving house.
3. If you’ve got your eye on a sweet pair of wheels and want to take them for a spin before committing. 4.
When you’re buying a new car and want to drive it off the lot, but want to take your time at home to find the best annual policy. 5. And finally, if you’re in between insurance providers and need a quick-fix for the interim period. The difference between temporary and pay-as-you-go cover With temporary car insurance your premium is determined by how long you want to be insured for.
You select a timeframe and pay for your premium up front.
With pay as you go, the amount you pay is determined by usage, either by the number of miles you drive or the time spent in your car. With PAYG you’ll pay a lower basic rate every month or year, depending on your policy period, and then pay an elevated rate for each mile or hour you drive. Typically, this type of cover requires a black box or telematics device to be fitted into your car to track when you drive.
Is temporary cover cheaper than standard car insurance? The average temporary car insurance policy is around just £42 a day, so over a short period of time it’s likely to work out cheaper than an annual policy which could set you back on average £465 a year.
Day for day, however, over several months or a year, an annual policy is likely to be the cheaper option. Who is eligible and what isn’t included? Provided you hold a valid full UK driving license and are aged 18 to 75 you will be eligible to take out a temporary car insurance policy.
Learner drivers, however, are not eligible to take out cover on a temporary basis. As with regular car insurance you can customise your cover with optional extras like breakdown cover, European cover, to protect you when driving abroad, and even add additional drivers to your policy.
How to get even cheaper temporary car insurance Here are four key ways you can save:
1. Compare and contrast loads of quotes. It’s also worth shopping around for regular and pay as you go policies, too, to see if you can get a better deal there more suited to your needs. 2. Choose a small, cheap car.
Borrowing your mum’s Bentley versus borrowing your mate’s Honda Jazz will typically have a serious impact on the cost of your premium.
3. Raise the amount of excess you’re willing to pay.
4. And, drop any extras you know you won’t need.
What next? For more information on temporary car insurance and to start comparing quotes, head to finder.com – links are in the description below. If you enjoyed this video, give us a like or subscribe to our channel right here. Thanks for watching.