Regular car insurance is bound by a 12-month contract. This means that you must pay direct debit charges if you do not pay the entire insurance premium off in time. In some instances, it can make more sense to take out one of the many different types of short-term insurance policies instead of an annual policy.

Temporary insurance cover for motor vehicles can be applied on most standard annual motor policies for circumstances such as test driving vehicles (when they require comprehensive insurance), or for short-term operation of a different vehicle. While the vast majority of insurance policies offer an extension for driving other vehicles, it is not necessary to provide more cover than “third party only” coverage does. Borrowing a friend’s sports car for fun will probably not be protected by third party insurance cover.

Temporary cover normally does not take a long time to sort out, and you can be on the road quickly, often within minutes. Documents can also be e-mailed to you directly, providing you with backup if an ANPR scanner identifies you as currently uninsured.

Other vehicles such as vans can be insured on temporary policies. In cases such as these, it is often more cost-effective to borrow a vehicle from a friend and obtain a temporary insurance policy than to rent a van for moving house, for instance. Short-term insurance can be beneficial for a number of reasons and is easier to obtain than most people think. Monthly policies are also available online. They provide a solution for those looking to keep a vehicle for a month or two before selling it.