What is short term car insurance?
It is a temporary car insurance policy which provides cover for a short period of time, like a few days or weeks.
You can usually get cover from 1 to 28 days, but some policies will insure you for up to 3 months.
What does it cover?
It usually gives you fully comprehensive cover, but some only offer third party, fire and theft protection. You should compare the two levels of cover if you are unsure which is right for you.
You can also extend your short term cover by adding extra benefits like European and breakdown cover, but they will cost you extra.
When can you use short term cover?
You can use a short term policy if:
You need to borrow someone's car temporarily
You need a vehicle for a one-off event like moving house
You have just bought a new car but not arranged an annual policy
You are test driving a car being sold privately
You are sharing the driving for a long journey
You have a second car you only drive occasionally, like a classic car
If you are a parent a short term policy could be an affordable option if your child needs cover to drive your car for a temporary period, for example when they are home from university.
It means that if they have an accident in your car it will not affect the cost of your insurance, and your no claims bonus will not be at risk. Find out how a no claims bonus can reduce you premiums.
Our guide on adding your child to your policy outlines the best ways to cover your child when they are driving your car.
How much does it cost?
This will depend on; the insurer, the car you are being insured on, your age and driving experience and where you live.
Read our guide to find out what else could affect the price of your policy.
Short term cover is calculated per day, so the longer the policy, the more you will pay.
When is it cheaper to get a full policy?
If you need cover for more than a few weeks it could be cheaper to take out an annual policy and cancel it early, even though you will be charged a cancellation fee of between £30 and £75.
For Example: If you need a car for 2 months you might get a short term quote of £200 per month, and an annual quote of £150 per month with a cancellation fee of £40.
Total cost of the short term cover is £200 x 2 = £400
Total cost of the annual policy is £150 x 2 + £40 = £340
So taking out an annual policy is £60 cheaper in this example.
However in most cases if you only need the cover for a few days or a couple of weeks then short term insurance will be the more cost effective option.
Can anyone get short term car insurance?
No. If you are under 21 or over 75 most insurers will not offer you short term cover.
However there are some insurers which will, so make sure you shop around to find a policy which meets your needs.
Other restrictions include:
You have not held your licence for at least 12 months
You have 8 or more penalty points on your licence from the last three years
You have pending prosecutions or police enquires
The cost of your car exceeds a certain value, for example £60,000
Check the exclusions of the policy carefully before you apply for a short term car insurance policy to avoid a wasted application.
If you want to use short term policies to insure your car as and when you need it, you will need to declare the vehicle off the road with a Statutory Off Road Notification (SORN) during periods it is not covered.
Here is how to declare your car off the road to avoid breaking the Continuous Insurance Enforcement (CIE) rules.