Buying car insurance for a month. Who’s it right for?
Buying car insurance for a month, or even less, has never been more popular.
Thousands are seeing the benefits of this relatively new car insurance product.
Why and who does one-month car insurance suit – and how does it work?
Temporary car insurance is just that – it’s normally car insurance that lasts from anywhere between one and 28 days.
It’s most popular for people who want to drive someone else’s car, perhaps because yours is off the road, or you’re a learner.
Whatever the reason, it’s a useful alternative to adding your name to someone else’s insurance, because, if you do this, and you have to make a claim, this will affect their renewal premium.
It could also cost them their no claims bonus.
On the other hand, a BIG advantage with a temporary policy is that if you do need to claim, it doesn’t have to affect any no claims you’ve built up over the years on an ordinary policy.
Having said that, adding your name to someone else’s policy for a limited time can actually be the cheapest option.
The key, as with all insurance policies, is to compare deals from across the market.
Another good reason for temp cover is if you’re picking up a new car; there's even pay-as-you-go insurance if you're a low mileage driver looking to save money.
You may have already looked into the best options for cover before you pick up the car, but there may be reasons why you haven’t got immediate cover.
Your current policy may still be running and you may decide it’s more cost effective to start insuring your new vehicle when the renewal date comes up.
In this case, you can usually choose to either take out a specialist temporary policy, or you can often just add the new car to your existing policy, which will almost certainly result in an increased premium and an admin fee.
Another good reason for temporary cover is if you literally need just one-day of cover.
This could be for any number of reasons, such as:
* Emergency use of vehicle
* Driving a borrowed car, perhaps to move house or move a son or daughter into new university digs.
From the point of view of an emergency, temporary cover can take effect from the moment it’s finalised, which can be very useful.
The other common reason to buy temp cover is if you are lucky enough to own a car you rarely use, perhaps a classic car.
A temporary policy will save you money by restricting your use to just a few days or weeks a year and you only pay for that period.
However, keep in mind that generally temporary cover will work out a lot more expensive than year-round cover on a day-to-day basis.
So, perhaps consider carefully whether that temporary cover you have in mind might turn into something more permanent, and consider prices carefully.
Temporary cover can be useful for owners of classic cars that are rarely used
Who might not be able to get one-month car insurance?
Like all policies, temporary ones come with small print, and they will all be slightly different in terms of restrictions.
But the commonest restriction we’ve come across is age.
Many insurers flatly refuse to offer a policy to anyone under 21 years old.
You may also find it hard to find a policy if you have points on your licence, especially recent ones, and again if you’ve made a lot of insurance claims in the past.
Basically, the rules are tougher than those for regular policies.
As always, the golden rule is to compare costs and make a considered choice.
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