Why might you need short term car insurance?
If you are considering one day car insurance, or any short term cover lasting up to 28 days, there are a few legal points worth keeping in mind. These policies are useful, but they do not sit completely outside the wider rules that apply to motor insurance in the UK.
Protected no claims discounts
Some short term insurers state that a claim made under their policy will not affect any no claims discount you hold elsewhere. On the surface that sounds reassuring, but there can be conditions attached.
If another policy could respond to the claim, for example one that allows you to drive other vehicles, you may be expected to claim on that policy first. In that situation, any no claims bonus attached to it could still be affected.
There is another layer to this. You are required to tell your existing insurer about any accidents you have been involved in, whether you claimed or not. Even if your no claims discount stays intact, your premium could still increase. Failing to declare an incident could lead to more serious problems, including a policy being invalidated.
Taxing a vehicle
To tax a vehicle, proof of insurance is normally required. DVLA systems check the Motor Insurance Database to confirm that cover is in place. In many cases, short term policies can be used for this purpose, although some insurers place restrictions on their use.
This can create a slightly confusing situation where the system may accept a policy, but the insurer’s own terms say otherwise. It is worth checking the wording carefully if you intend to use short term cover when taxing a vehicle.
Lending your car to someone else
If you allow another person to drive your car, you need to be sure that they are properly insured. If they are not, you could be committing an offence yourself by permitting the use of an uninsured vehicle.
This type of offence is treated strictly. Even if you believed the driver had insurance, that may not be enough as a defence. Penalties can include a fine and points on your licence.
Check before handing over the keys
Because of this, it is important to be certain that valid insurance is in place before anyone else drives your vehicle. Short term cover can be a practical option in these situations, as it allows a driver to arrange their own policy for a limited period.
Taking a moment to confirm everything is in order can prevent complications later on, particularly where responsibility for insurance might not be immediately obvious.