▼Sponsored Links
A relatively new insurance option people are now discovering, one day insurance offers a short term solution that can come in handy in a number of circumstances. Not only does it provide nearly all the benefits and protections of conventional annual insurance and is available right away, but it makes for a convenient and cheap car insurance option with few conditions attached(namely must be for personal use). It can also be extended from 1 up to 28 days. The consequences of driving a vehicle you are not insured for can be steep, and vary depending on where you live, so it pays to be smart and take advantage of this special type of insurance offering when available.
Uses for One Day Insurance
The following are several such ways in which temporary insurance is often used, and the rules of liability that surround them:
- Lending a vehicle to a friend, family member, or colleague. Under most policies, your coverage extends to whoever you’ve lent your car to(minimum age may be one exception). The car is insured – not the driver, and you are liable for what happens to it. The advantage of having a separate one day insurance policy is that you are protected from putting your no claims bonus, aka No Claim Discount (NCD)[1] at risk. Otherwise if they did have an accident, your rates would go up.
- Additional Cars. Should you have additional cars that you very seldom drive, 1 day car insurance can be a highly economical alternative to annual or even usage based insurance.
- Drive Away Coverage. If you are a new driver or somehow between shopping for a different policy and lack insurance, you would still be required by law to have some form of coverage for the drive home, however short. You typically have a few days of carryover coverage after replacing your prior vehicle, depending on your policy. A dealership will want be sure you are in compliance with insurance requirements before they sign over the car to you.
- Special Events ie Racing. Your average insurance company in all likelihood won’t offer protection for a competitive event, but a high performance driver education event may be covered under some policies. Otherwise competitive insurance may be referred to as racing, motorsport, or track day insurance and a specialist insurer provider will need to be sought out. One day policies may be offered, as well as annual policies covering a fixed number of race days per year.
Shopping and Comparing Providers
You should always first consult with your existing insurance company on your policy’s coverage limitations and options for short term or one day insurance where applicable. They will often be able to provide you with a better deal than 3rd party insurers. Never the less, do your homework by shopping around and comparing (3 quotes recommended) to secure the best possible deal as rates can vary from one provider to the next.