Temporary Vs. Traditional Car Insurance: Which One Is Right For You?

Having car insurance is a legal requirement in the UK, so you need to make sure you are covered to avoid any legal issues.

The two main types of insurance are traditional full coverage and temporary car insurance. Deciding which is best for you depends on your situation, the length you need coverage and other factors Here’s a guide to help you decide which type of insurance is right for you.

Understanding The Basics

The main difference between traditional, or annual, insurance and temporary policies is the duration of the policy. Temporary policies are designed to be used for short-term periods such as a few days or weeks. With traditional policies, the expectation is that they will last for a year until renewal.

You may find that there are varying levels of coverage between the two types as well. When you choose an annual policy, you have the option to add on extras which give you more coverage at a higher price. Temporary insurance policies can have better coverage, even if it is for a shorter time.

When Temporary Car Insurance Makes Sense

There are instances where temporary car insurance is a better option for you than regular coverage. If you ever need to borrow a car in a medical emergency, for example, then you need insurance to be able to drive legally. Any existing insurance policy may not cover you driving another car so temporary insurance can cover you instead.

Utilising short-term temporary insurance can work out cheaper on your wallet. Paying for a longer policy and then cancelling often comes with extra cancellation fees which can add up to be quite expensive. By insuring for a specific length of time the policy will lapse without any additional fees.

Pros And Cons Of Long-Term Coverage

Long-term coverage is the best option for you if you are going to be driving your vehicle for a substantial period of time. Being covered the whole time prevents any gaps and avoids legal issues. Having peace of mind that your insurance is sorted allows you to be a safer driver.

If you renew with your provider yearly, you may benefit from loyalty discounts for sticking with them. However, this isn’t always the case so whenever you are up for renewal take some time to shop around and get the best deal.

Annual policies can be paid upfront or in monthly instalments. Paying your policy off in one go can result in your paying less overall than if you were to opt for monthly payments. This will end up saving you money in the long run, provided you can afford it in the first place.