Temporary car insurance vs annual cover: what do you need to know?

ACCORDING to recent reports, car insurance has reached £500 a year for the average UK driver. As with any type of insurance, car insurance is a very personal thing and depends on your driving habits, vehicle and lifestyle. Plus, when you add hybrid and remote working into the picture, it’s clear that commuting patterns are no longer the same as they once were. Many are also opting to drive less and use public transport more in a bid to help reduce emissions.

Fortunately, these differences can be catered for with annual or temporary car insurance policies. But what are the key differences between the two? Here’s a breakdown of what you need to know.

Is annual car insurance always the best option?

For those who own and regularly drive their car, annual car insurance is likely the best option. However, due to the changing habits in the way we drive, an annual policy might not be for everybody, or suitable in all circumstances. For example, you might borrow a friend’s car or share the driving during a road trip. Temporary car insurance can give drivers more flexibility when it comes to their car insurance, making it a go-to option for many. For this reason, temporary car insurance has been on the rise.

As Marc Pell, CEO of temporary car insurance company Tempcover, said:

“Temporary car insurance is an agile and cost-effective insurance option that can be more suitable than annual insurance in many instances. It empowers customers with a choice and provides a solution for those seeking flexibility without committing to an entire year of coverage.” 

He continues to add:

“With temporary insurance, you pay only for the period you need, ensuring you have the protection exactly when required. When comparing temporary car insurance versus annual cover, it all comes down to the individual needs and use case, if there’s an element of uncertainty, or flexibility is needed, then temporary insurance can provide coverage precisely when and where you need it.” 

Cancellation fees

When it comes to cancellation rights, most annual policies require a cancellation fee while temporary ones can usually be cancelled at any time. Again, this allows drivers to gain more control over their policy.

Comprehensive cover

Comprehensive cover is the most extensive option out of multiple levels when buying an annual policy. However, it tends to be included as standard when you buy temporary car insurance. This means that your policy will cover a wider set of incidents while out on the road and while the car is stationary. 

Length of the process

While annual car insurance policies involve an understandably lengthier process, temporary car insurance can be acquired in a matter of minutes once you’ve gained the vehicle owner’s permission if needed. This is because an annual application needs to take a large array of details, whereas temporary insurance doesn’t need to cover as much ground.

It falls down to your personal circumstances

As with any type of insurance, whether you’re looking at home insurance, gadget insurance or others, the choice you make should be based on your own personal situation. If you feel you could benefit from opting for temporary car insurance over an annual policy, you could find yourself saving money while benefiting from a level of protection that suits your lifestyle.