Your Guide To The Benefits Of Temporary Car Insurance
Impact On The Vehicle Annual No Claims Discount (NCD)
Every annual car insurance policy has the opportunity to decrease the cost depending upon the number of claim free years motoring. The reductions can be as much as 70% of the premium so they are well worth preserving. A claim can result in losing the no claims discount (called NCD) and it can take several years of claim free motoring to claw it back. Thus losing the NCD can impact over several years costing, potentially many hundreds of pounds each year until the full NCD is won back. Adding a driver to the vehicle annual policy threatens that NCD because if that driver, in an unfamiliar car has a claim then the vehicle owner loses his NCD even though he was not the driver at the time of the incident. It also puts pressure on the driver who is borrowing the car because he or she does not want to responsible for losing the owners NCD whilst borrowing the car.
A short term insurance policy is a standalone policy which means any claim for the driver will be met by the short term policy and not the car owner’s annual insurance policy. In this way the massive benefit of a good NCD is preserved and is safe whilst the temporary driver is in control of the borrowed vehicle.
No Messy Mid-term Adjustment (MTA) On An Annual Policy
It can be difficult to add an additional driver for a short period to an annual insurance policy. There are factors which will impact on it: the additional driver age, the insured vehicle, the annual policy insurer, the address of the additional driver, the country of residence of the additional driver and the additional driver licence held. An example would trying to add a relative with an Australian address or licence, adding a younger driver to a performance vehicle policy, adding a driver under 50 years of age to an annual policy written by a specialist over 50’s insurer.
Added to this is the process which is usually by phone to a call centre and the amended insurance certificate taking days to arrive by post and be added to the Motor insurers Database. Short term cover is available on line within minutes and the certificate is available immediately after the purchase with the MID update often that day.
Adding Additional Drivers
It is easy to add extra drivers to share a journey for no additional cost. A MTA would usually be difficult for several drivers to be added and the cost increases for each driver.
Instant Purchase And Insurance Certificate
There is no waiting days for the amended annual certificate to arrive by post. Provided the acceptance criteria are met the purchase is instant with insurance starting from 15 minutes after purchase and can be booked up to 28 days in advance. The insurance certificate is email straight away and can be printed off at home or in the office. The MID is notified of the insurance policy within 24 hours and often much sooner.
Flexibility Of Vehicles To Be Insured
You can insure one car for a day or two then change the vehicle and purchase another policy for the days you have the second car and so on. The number of vehicles is not limited provided they are acceptable as a make and model.
Flexibility Of Dates For Cover
As with the cars to be insured the dates are flexible as well. An example would be a friend visiting from the EU who borrows your car for a couple of days, then moves to another friend days later and borrows their car for several days sightseeing etc. each period can be separately insured rather than hiring for the whole period.