Taking out short term insurance is a great way to minimise costs and only pay for the amount of time that you require cover. It is completely separate from your annual policy and so will not impact on your no claims discount. There are no long-term contracts and you can either organise one day insurance in advance when you have pre-arranged plans or at the last minute for immediate emergency cover, to give you peace of mind when driving another vehicle unexpectedly.
Why would I need one day insurance?
There are many reasons why it may be more convenient to take out one day, or even hourly car insurance. Here are just some of them:
- You may wish to test drive a car and for this you may only need an hours worth of insurance, which is handily offered by Admiral one day insurance.
- One day van insurance is ideal if you are moving house or perhaps need to transport a large piece of furniture.
- If you are borrowing a car or motorhome for a holiday then you may take short term insurance over a few weeks, but this could still be cheaper than taking out an annual policy and then cancelling it, due to the admin cancellation fee that is usually applied.
- In an emergency, you may be required to take over if the designated driver is suddenly unable to drive. In this case one day insurance that is quick to arrange such as RAC day insurance comes in very handy, as it can be activated online within 15 minutes.
- If you own a classic car that you use rarely, it is probably cheaper to insure it short term when you choose to take it for a spin, rather than paying for an annual policy.
- Students home from university often ask to borrow their parents car, and in this case a short-term policy provides more comprehensive cover then simply adding students temporarily on to the parents annual policy.
- Learner drivers may not be able to take lessons on a regular basis and so choose to buy one day insurance on the rare opportunities that they get to fit in lessons.
What should you watch out for?
Most policies will impose limits such as a minimum age requirement, a maximum vehicle value and a standard excess. For example, one day insurance from Aviva requires that the vehicle be worth less than £60,000 and drivers must be between 19 and 75. Check that you fulfil the criteria before applying.
Day insurance under 21 years old does tend to be more expensive as drivers aged 17 – 20 are less experienced and more likely to have an accident and make a claim, statistically. One day insurance for 18 year olds and above is available but generally companies will want drivers to have held a valid licence for 12 months or more. Younger drivers may find it helpful to increase the excess on the policy, drive cars with smaller engines and use comparison sites to find the cheapest one day car insurance for them.