Using Short Term Options To Save Money On Your Vehicle Insurance

Monday, July 12th, 2010 at 3:47 am

Vehicle insurance is an unavoidable part of owning and driving a vehicle in the UK. Yearly insurance prices and generally pretty high, although the amount you need to pay will depend on several factors (age, vehicle, driving history, no claims bonuses, etc).

There are however a few ways you can use short term vehicle insurance as an alternative to annual policies, allowing to save yourself considerable amounts of money in certain situations.

One day insurance can be a good choice if you've got a vehicle but don't drive it very often; a lot of people in this situation would just go for a slightly reduced yearly policy, whereas you can actually save money with alternative options. If you only use your car a few days a month, it may work out cheaper to utilize day insurance just for the days you're going to be using it.

Short term cover is also particularly useful if you're planning on buying a new car, particularly if you've already built up a no claims bonus on an existing long-term policy. Accidents are generally more likely to occur when you're driving a vehicle that's unfamiliar. Taking out short term policy when you first get a car may therefore be a good idea, adding the vehicle to your existing cover once you get used to it. If you do have an accident or need to make a claim whilst using short-term cover, your no claims bonus shouldn't be affected, as temporary cover can run alongside pre-existing cover.

People who own vans can often save money with short term cover, particularly if they're used in conjuction with a small business. If you use a van for business but it only gets used a couple of times a month, you could save considerable sums by utilizing short term van insurance in place of a long-term policy. This way you can cut down on yearly expenditure and only have vans insured when you've got a job that will help pay for the insurance, potentially improving cash flow.

If you do decide to opt for a temporary insurance policy, make sure you shop around. Many providers will allow you to get an instant car insurance quote on their websites, which mean you can easily and quickly get quotes from several different providers. You can then compare these quotes to make sure you find the best deal.

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