Know All About Temporary Car Insurance in the UK
What is temporary car insurance in the UK?
Temporary car insurance in the UK or anywhere generally refers to short-term car insurance, which is normally between 1 day and 28 days or between 1 and 8 months, whichever is your requirement.
Why is temporary car insurance required?
Most often, as a driver with a proper license and eligibility in the UK, you may have to drive different cars to different places.
The most common reasons why temporary car insurance would be needed are:
Þ If you live, elsewhere and travel to the UK to your friend’s place and drive his car.
Þ One of your friends goes abroad and you have to drive his car.
Þ You are borrowing your friend or relative’s car for a weekend within the UK.
Þ If your company lends you a car for a temporary period.
Þ To test-drive a new car from a dealer’s showroom.
How does temporary car insurance in the UK work?
Temporary car insurances are generally issued for one day, one month, or one week based on your requirements. There are two main categories of temporary car insurance in the UK:
Daily Car Insurance: This type of insurance normally provides insurance coverage between 1 and 28 days and is paid on a daily basis or at times on a weekly basis based on the insurance company. This is required and used by a local car rental service or other country driving or in a case where you are using your friend’s car for a day or a few days. At times, teenagers would be driving their friend or relative’s car, when this becomes necessary to take care of any damage or accident to the car.
Even in case of test-drives, the majority of the car dealers demand car insurance for you to use the new vehicle. In such case, you opting for temporary daily car insurance are ideal.
Monthly Temporary Car Insurance: This type of insurance can be taken for a period of one month to eight months and you will have to pay every month for this. Most often students and others opt for this type of temporary car insurance to the traditional one, as this covers almost all aspects of a normally insurance at a lower cost and lesser commitment. The greatest benefit of this type of temporary car insurance is, you will not be charged any cancellation fee when you back out of the policy.
Temporary car insurance provides coverage, which is almost similar to that of a traditional one. The coverage includes property damage, physical injury, protects passengers and driver from expenditures associated with the accidents, and takes care of the towing needs when the vehicle breaks down.
Most of the insurance provider companies also offer an optional coverage of medical costs, court fees, etc. when there is a need for hospitalization or court issues. Whereas; there are companies that also offer you a comprehensive coverage that includes cases of stolen cars and damaged cars while parked.
How are the rates determined for the temporary car insurance?
When compared to the traditional car insurance, the temporary car insurance policies have lesser premium rates. However, in most cases, you will have to pay the premium beforehand, which is before your policy is activated.
The rates of premium however, also depends on the number of months or days covered, the type of coverage, where you live, the model of car, and the reliability of the driver, which in most cases is the experience and age of the driver.
The rates also vary when the person who is applying for the temporary car insurance has any past claims of insurance or case of traffic violations in the past.
The other factor that could influence the rate of temporary car insurance is your credit score being poor.
How to Acquire Temporary Car Insurance in the UK?
The first step for you would be to enquire in your area about the insurance providers. You may also look up online to find one but you will have to go through various customer reviews and be very sure about the company. The majority of the insurance provider websites provides you the facility of applying online and getting quotes, etc. You can compare quotes between companies and look, which suits your exact needs and budget.
When you apply for the temporary car insurance in the UK online, be sure to whom you are giving your personal information and how much you are providing. Instead, you may request the company to talk to you over the phone and give you the quotes. Compare rates and benefit the most.