A guide to short-term car insurance

Whether you’re borrowing a car from a loved one, sharing the driving on a long trip or looking to buy or sell, there are many reasons why a standard 12-month car insurance policy is too long – not to mention expensive.

To prevent spending hundreds, if not thousands, of pounds on a year’s cover, only to cancel it a short while later, many insurance companies offer short-term policies. These give you cover for just as long as you need it, helping you avoid hassle and hefty bills.

Here, we explain the main benefits of short-term car insurance, who can get cover, and a number of alternatives that can also help make getting behind the wheel of a different vehicle more accessible.

What is short-term car insurance?

As the name would suggest, short-term car insurance offers temporary cover on a certain vehicle. Most providers will offer insurance cover spanning from an hour to 28 days, so you can tailor it to ensure you’re only paying for the cover you need. 

Most providers give drivers the option to begin their temporary insurance policy immediately, making it incredibly convenient for those who need to borrow a car in an emergency.

Where can I buy short-term car insurance?

Short-term insurance is generally quick and easy to take out. You can often apply online or over the phone. If you buy a car and need to insure it immediately to drive it home, a one-day policy may be a better option than trying to arrange annual cover because it will give you more time to shop around for the best 12-month policy. 

It's also worth remembering that you can save hundreds of pounds on car insurance by buying an annual policy up to three weeks in advance, so you may be better off getting short term cover first. 

Comparison websites can help you to find the right deal by allowing you to compare competitive quotes from short-term insurance specialists, such as tempcover.com and dayinsure.com.

What is test drive insurance?

If you’re buying or selling a vehicle, it’s important to make sure that you or your customers are properly covered before getting behind the wheel for a test drive, with not all car insurance policies featuring ‘driving other cars’ (DOC) cover.

That’s where test drive insurance comes in. This variant of short-term cover allows buyers and sellers to arrange cover lasting for between an hour and a month to make sure that a car is right for them before they buy it. 

Unlike DOC, test drive insurance is fully-comprehensive, meaning the car’s owner will be covered if their vehicle is stolen or damaged, or for any legal expenses involved in making a claim against another road user.

Who can take out short-term car insurance?

Most insurers will offer standard policies to drivers between the ages of 18 and 75, but when it comes to short-term insurance, however, the minimum age is normally 21. 

What's more, the insurer may also require the driver to have a certain number of years' of experience behind the wheel. That said, some providers will offer short-term cover to those with a provisional licence who are looking to learn in a loved one’s car or to younger drivers who don’t have a vehicle of their own.

Nevertheless, drivers with poor claims histories, several points on their licences, or previous motoring convictions may struggle to get short-term cover. 

What are the alternatives to short-term car insurance?

If you have a comprehensive insurance policy, you may be covered to drive other people's cars (with their permission, of course). However, many annual policies exclude cars not listed on the policy, and if you do have cover, it will be third party only, leaving you liable for the cost of repairing any damage to the vehicle you are borrowing.

Another option is for the car owner to add the person who needs short-term cover as a named driver on his or her policy. If you are loaning your car to a relative, for example, you would need to add them to your insurance.

This could prove expensive, though, especially if your relative is young and inexperienced. Should they be involved in an accident, the owner of the vehicle would also risk losing their no claims bonus. For those in need of cover lasting more than 28 days, however, it may be worth checking out pay-as-you-go policies that can run for one, two or three months. 

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