Is a temporary car insurance policy cheaper than an annual policy for occasional use?<\/h3><\/div>![\"Danny](\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/3\/2020\/07\/Danny-Butler.jpg\")
<\/p>
Finder insurance expert Danny Butler<\/a> answers <\/em><\/div><\/div>Temporary car insurance is flexible and can help you save money if you need a car for a matter of hours, day or weeks. But whether it will work out the cheapest option depends how occasional your usage is.<\/p>
Per day, temporary car insurance will typically cost more than an annual policy. Let\u2019s say, for the sake of argument, a temporary policy on a car costs \u00a320 per day and an annual policy would cost the same driver \u00a3500. If that driver were to use the car for more than 25 days, taking out an annual policy would work out cheaper.<\/p>
The tipping point will, of course, vary by insurer, and also your car usage pattern. Temporary car insurance becomes cheaper per-day the longer you take out cover for. So taking out cover for 25 days in a row will be cheaper than buying insurance for just two or three days each month.<\/p>
But, in general, if you expect to use a car for more than a month per year, it\u2019s worth investigating alternatives and comparing costs.<\/p><\/div><\/div><\/div><\/article>
What alternatives are there to temporary insurance?<\/h3>- Annual insurance<\/strong>. If you\u2019re going to use the car for at least a month or two of the year, it might be cheaper to take out an annual policy<\/a>. It\u2019s perfectly fine for both you and the owner of a car you\u2019re borrowing to have your own annual policies, and you can always cancel it when you no longer need it to minimise costs. The downsides of taking this route are you\u2019ll be hit with a cancellation fee if you stop cover, and you might not receive a refund for all your unused months.<\/li>
- Being added as a named driver<\/strong>. If you\u2019re borrowing the car of a friend of family member, see if they\u2019re willing to add you as a named driver<\/a> (temporarily or permanently). If you\u2019re a safe, experienced driver, this may cost very little (though they\u2019ll need to pay an admin fee if they add you part way through their policy term). If you\u2019re considered a high-risk<\/a> driver, though (because of your age, for example), it could be more expensive than temporary insurance, so be sure to compare costs. And if you\u2019re added as a named driver and need to make a claim, it could affect the policyholder\u2019s no-claims bonus<\/a> and renewal premium.<\/li>
- Drive other cars insurance<\/strong>. If you have your own comprehensive car insurance policy, check if it covers you to drive other cars<\/a> (DOC). Be aware that, even if it does, this will probably only give you third-party cover \u2013 the minimum legal requirement. If you\u2019re borrowing a friend\u2019s car, they might want you to take out cover that protects their car as well as other people\u2019s.<\/li><\/ul>
What do I need to get a quote for temporary car insurance?<\/h3>
To get a temporary car insurance quote, you\u2019ll need the details of when you need cover to start and stop, plus most of the other information you\u2019ll usually need to give to get any car insurance quote, including:<\/p>
- The car make and model<\/li>
- Your personal details, such as your age, driving history and occupation.<\/li><\/ul>
What optional extras are available with temporary insurance?<\/h3>
You can get many of the same extras on a short-term basis as would be available with an annual policy. The following are some of the most common add-ons that might be available:<\/p>
- Comprehensive cover to drive in Europe<\/a> (your policy should include third-party cover in Europe as standard)<\/li>
- Temporary UK or EU breakdown cover<\/a>.<\/li><\/ul>
How much does temporary car insurance cost?<\/h3>
As with a standard car insurance policy there are a number of factors that will affect what you pay in premiums for temporary car insurance, such as:<\/p>
- Your age<\/li>
- Your address<\/li>
- How long you\u2019ve been driving<\/li>
- Your driving history<\/li>
- The car\u2019s make and model<\/li><\/ul>
How can I save on my temporary car insurance?<\/h3>
Temporary insurance can often be quite expensive, particularly if you\u2019re a young driver. Other than choosing to drive a less powerful car (not always something you have much control over if you\u2019re borrowing a car), there are a few ways you can lower your insurance premiums.<\/p>
- Only pay for the cover you need.<\/strong> Don\u2019t pay for more days than you need, and avoid paying for optional extras like breakdown cover<\/a> if you don\u2019t need them. If you\u2019re sharing the driving on a road trip, check if your driving companion\u2019s existing breakdown policy might cover them as a driver or passenger in any car.<\/li>
- Try choosing a higher excess. <\/strong>You could tell the insurer you\u2019re willing to pay a higher excess, which is the amount you contribute to a claim before the insurer pays out. A bigger excess generally leads to lower premiums.<\/li>
- Be a safe driver.<\/strong> If you drive responsibly, avoid making claims on your standard insurance, and don\u2019t earn points on your licence through reckless driving, finding cheap car insurance will be much easier, whether annual or temporary.<\/li>
- Shop around to compare price.<\/strong> Don\u2019t settle on the first temporary car insurance deal you see, get plenty of quotes and use comparison websites to really root out the cheapest deal on the market.<\/li>
Consider an annual policy instead. You could potentially save money by buying annual car insurance and cancelling it if you\u2019re going to need cover for more than a month or two.<\/trong><\/li>- Get cover as a named driver. <\/strong> Getting a friend or relative to put you down as an additional driver on their main insurance policy<\/a> could work out cheaper too. Get them to ask their insurer how much it will cost, and then compare with your temporary insurance quotes.<\/li><\/ul>
Pros and cons of temporary car insurance<\/h3>\n \n Pros<\/h4>\n \n - Fully flexible \u2013 get cover from one hour to 28 days that can be extended if needed<\/li>\n
- Ideal for getting cover to drive someone else's car in an emergency<\/li>\n
- For very short periods, likely to be cheaper than alternatives<\/li>\n <\/ul>\n <\/div>\n \n \n
Cons<\/h4>\n \n - Per day, costs more than annual cover \u2013 could be more expensive if you drive a car for more than a month or two<\/li>\n
- Most policies only allow a single driver<\/li>\n
- Excesses are sometimes higher on temporary policies than annual policies<\/li>\n <\/ul>\n <\/div>\n <\/div>\n
Bottom line<\/h3>
Finding the cheapest temporary car insurance really boils down to your own circumstances. Many factors will influence the cost of your premiums such as the length of time you need cover for, your age and driving history as well who the insurance provider is.<\/p>
Even just a little bit of research will throw up some different deals on offer. And from these, you\u2019ll be able to compare them to find the best. Price alone isn\u2019t always a good indicator of the best policy as you\u2019ll need to also check the features of the policy against what you require.<\/p>
Frequently asked questions<\/h3>- \n \n
\n
<\/p>
Temporary car insurance is flexible and can help you save money if you need a car for a matter of hours, day or weeks. But whether it will work out the cheapest option depends how occasional your usage is.<\/p>
Per day, temporary car insurance will typically cost more than an annual policy. Let\u2019s say, for the sake of argument, a temporary policy on a car costs \u00a320 per day and an annual policy would cost the same driver \u00a3500. If that driver were to use the car for more than 25 days, taking out an annual policy would work out cheaper.<\/p>
The tipping point will, of course, vary by insurer, and also your car usage pattern. Temporary car insurance becomes cheaper per-day the longer you take out cover for. So taking out cover for 25 days in a row will be cheaper than buying insurance for just two or three days each month.<\/p>
But, in general, if you expect to use a car for more than a month per year, it\u2019s worth investigating alternatives and comparing costs.<\/p><\/div><\/div><\/div><\/article>
What alternatives are there to temporary insurance?<\/h3>- Annual insurance<\/strong>. If you\u2019re going to use the car for at least a month or two of the year, it might be cheaper to take out an annual policy<\/a>. It\u2019s perfectly fine for both you and the owner of a car you\u2019re borrowing to have your own annual policies, and you can always cancel it when you no longer need it to minimise costs. The downsides of taking this route are you\u2019ll be hit with a cancellation fee if you stop cover, and you might not receive a refund for all your unused months.<\/li>
- Being added as a named driver<\/strong>. If you\u2019re borrowing the car of a friend of family member, see if they\u2019re willing to add you as a named driver<\/a> (temporarily or permanently). If you\u2019re a safe, experienced driver, this may cost very little (though they\u2019ll need to pay an admin fee if they add you part way through their policy term). If you\u2019re considered a high-risk<\/a> driver, though (because of your age, for example), it could be more expensive than temporary insurance, so be sure to compare costs. And if you\u2019re added as a named driver and need to make a claim, it could affect the policyholder\u2019s no-claims bonus<\/a> and renewal premium.<\/li>
- Drive other cars insurance<\/strong>. If you have your own comprehensive car insurance policy, check if it covers you to drive other cars<\/a> (DOC). Be aware that, even if it does, this will probably only give you third-party cover \u2013 the minimum legal requirement. If you\u2019re borrowing a friend\u2019s car, they might want you to take out cover that protects their car as well as other people\u2019s.<\/li><\/ul>
What do I need to get a quote for temporary car insurance?<\/h3>
To get a temporary car insurance quote, you\u2019ll need the details of when you need cover to start and stop, plus most of the other information you\u2019ll usually need to give to get any car insurance quote, including:<\/p>
- The car make and model<\/li>
- Your personal details, such as your age, driving history and occupation.<\/li><\/ul>
What optional extras are available with temporary insurance?<\/h3>
You can get many of the same extras on a short-term basis as would be available with an annual policy. The following are some of the most common add-ons that might be available:<\/p>
- Comprehensive cover to drive in Europe<\/a> (your policy should include third-party cover in Europe as standard)<\/li>
- Temporary UK or EU breakdown cover<\/a>.<\/li><\/ul>
How much does temporary car insurance cost?<\/h3>
As with a standard car insurance policy there are a number of factors that will affect what you pay in premiums for temporary car insurance, such as:<\/p>
- Your age<\/li>
- Your address<\/li>
- How long you\u2019ve been driving<\/li>
- Your driving history<\/li>
- The car\u2019s make and model<\/li><\/ul>
How can I save on my temporary car insurance?<\/h3>
Temporary insurance can often be quite expensive, particularly if you\u2019re a young driver. Other than choosing to drive a less powerful car (not always something you have much control over if you\u2019re borrowing a car), there are a few ways you can lower your insurance premiums.<\/p>
- Only pay for the cover you need.<\/strong> Don\u2019t pay for more days than you need, and avoid paying for optional extras like breakdown cover<\/a> if you don\u2019t need them. If you\u2019re sharing the driving on a road trip, check if your driving companion\u2019s existing breakdown policy might cover them as a driver or passenger in any car.<\/li>
- Try choosing a higher excess. <\/strong>You could tell the insurer you\u2019re willing to pay a higher excess, which is the amount you contribute to a claim before the insurer pays out. A bigger excess generally leads to lower premiums.<\/li>
- Be a safe driver.<\/strong> If you drive responsibly, avoid making claims on your standard insurance, and don\u2019t earn points on your licence through reckless driving, finding cheap car insurance will be much easier, whether annual or temporary.<\/li>
- Shop around to compare price.<\/strong> Don\u2019t settle on the first temporary car insurance deal you see, get plenty of quotes and use comparison websites to really root out the cheapest deal on the market.<\/li>
Consider an annual policy instead. You could potentially save money by buying annual car insurance and cancelling it if you\u2019re going to need cover for more than a month or two.<\/trong><\/li>- Get cover as a named driver. <\/strong> Getting a friend or relative to put you down as an additional driver on their main insurance policy<\/a> could work out cheaper too. Get them to ask their insurer how much it will cost, and then compare with your temporary insurance quotes.<\/li><\/ul>
Pros and cons of temporary car insurance<\/h3>\n \n Pros<\/h4>\n \n - Fully flexible \u2013 get cover from one hour to 28 days that can be extended if needed<\/li>\n
- Ideal for getting cover to drive someone else's car in an emergency<\/li>\n
- For very short periods, likely to be cheaper than alternatives<\/li>\n <\/ul>\n <\/div>\n \n \n
Cons<\/h4>\n \n - Per day, costs more than annual cover \u2013 could be more expensive if you drive a car for more than a month or two<\/li>\n
- Most policies only allow a single driver<\/li>\n
- Excesses are sometimes higher on temporary policies than annual policies<\/li>\n <\/ul>\n <\/div>\n <\/div>\n
Bottom line<\/h3>
Finding the cheapest temporary car insurance really boils down to your own circumstances. Many factors will influence the cost of your premiums such as the length of time you need cover for, your age and driving history as well who the insurance provider is.<\/p>
Even just a little bit of research will throw up some different deals on offer. And from these, you\u2019ll be able to compare them to find the best. Price alone isn\u2019t always a good indicator of the best policy as you\u2019ll need to also check the features of the policy against what you require.<\/p>
Frequently asked questions<\/h3>- \n \n
\n
What do I need to get a quote for temporary car insurance?<\/h3>
To get a temporary car insurance quote, you\u2019ll need the details of when you need cover to start and stop, plus most of the other information you\u2019ll usually need to give to get any car insurance quote, including:<\/p>
- The car make and model<\/li>
- Your personal details, such as your age, driving history and occupation.<\/li><\/ul>
What optional extras are available with temporary insurance?<\/h3>
You can get many of the same extras on a short-term basis as would be available with an annual policy. The following are some of the most common add-ons that might be available:<\/p>
- Comprehensive cover to drive in Europe<\/a> (your policy should include third-party cover in Europe as standard)<\/li>
- Temporary UK or EU breakdown cover<\/a>.<\/li><\/ul>
How much does temporary car insurance cost?<\/h3>
As with a standard car insurance policy there are a number of factors that will affect what you pay in premiums for temporary car insurance, such as:<\/p>
- Your age<\/li>
- Your address<\/li>
- How long you\u2019ve been driving<\/li>
- Your driving history<\/li>
- The car\u2019s make and model<\/li><\/ul>
How can I save on my temporary car insurance?<\/h3>
Temporary insurance can often be quite expensive, particularly if you\u2019re a young driver. Other than choosing to drive a less powerful car (not always something you have much control over if you\u2019re borrowing a car), there are a few ways you can lower your insurance premiums.<\/p>
- Only pay for the cover you need.<\/strong> Don\u2019t pay for more days than you need, and avoid paying for optional extras like breakdown cover<\/a> if you don\u2019t need them. If you\u2019re sharing the driving on a road trip, check if your driving companion\u2019s existing breakdown policy might cover them as a driver or passenger in any car.<\/li>
- Try choosing a higher excess. <\/strong>You could tell the insurer you\u2019re willing to pay a higher excess, which is the amount you contribute to a claim before the insurer pays out. A bigger excess generally leads to lower premiums.<\/li>
- Be a safe driver.<\/strong> If you drive responsibly, avoid making claims on your standard insurance, and don\u2019t earn points on your licence through reckless driving, finding cheap car insurance will be much easier, whether annual or temporary.<\/li>
- Shop around to compare price.<\/strong> Don\u2019t settle on the first temporary car insurance deal you see, get plenty of quotes and use comparison websites to really root out the cheapest deal on the market.<\/li>
Consider an annual policy instead. You could potentially save money by buying annual car insurance and cancelling it if you\u2019re going to need cover for more than a month or two.<\/trong><\/li> - Get cover as a named driver. <\/strong> Getting a friend or relative to put you down as an additional driver on their main insurance policy<\/a> could work out cheaper too. Get them to ask their insurer how much it will cost, and then compare with your temporary insurance quotes.<\/li><\/ul>
Pros and cons of temporary car insurance<\/h3>
\n\nPros<\/h4>\n
- \n
- Fully flexible \u2013 get cover from one hour to 28 days that can be extended if needed<\/li>\n
- Ideal for getting cover to drive someone else's car in an emergency<\/li>\n
- For very short periods, likely to be cheaper than alternatives<\/li>\n <\/ul>\n <\/div>\n \n \n
Cons<\/h4>\n
- \n
- Per day, costs more than annual cover \u2013 could be more expensive if you drive a car for more than a month or two<\/li>\n
- Most policies only allow a single driver<\/li>\n
- Excesses are sometimes higher on temporary policies than annual policies<\/li>\n <\/ul>\n <\/div>\n <\/div>\n
Bottom line<\/h3>
Finding the cheapest temporary car insurance really boils down to your own circumstances. Many factors will influence the cost of your premiums such as the length of time you need cover for, your age and driving history as well who the insurance provider is.<\/p>
Even just a little bit of research will throw up some different deals on offer. And from these, you\u2019ll be able to compare them to find the best. Price alone isn\u2019t always a good indicator of the best policy as you\u2019ll need to also check the features of the policy against what you require.<\/p>
Frequently asked questions<\/h3>
- \n \n
\n
- \n
- Try choosing a higher excess. <\/strong>You could tell the insurer you\u2019re willing to pay a higher excess, which is the amount you contribute to a claim before the insurer pays out. A bigger excess generally leads to lower premiums.<\/li>
- Only pay for the cover you need.<\/strong> Don\u2019t pay for more days than you need, and avoid paying for optional extras like breakdown cover<\/a> if you don\u2019t need them. If you\u2019re sharing the driving on a road trip, check if your driving companion\u2019s existing breakdown policy might cover them as a driver or passenger in any car.<\/li>
- Temporary UK or EU breakdown cover<\/a>.<\/li><\/ul>
- Comprehensive cover to drive in Europe<\/a> (your policy should include third-party cover in Europe as standard)<\/li>