How does short term van insurance cover work?
Short term van insurance policies provide temporary cover, which can be anything from a number of days to a number of months, to allow motorists to legally drive a van for a short period of time without having to take out an annual policy.
Although it may not seem like such a chore to take on a 12 month policy and then cancel it when you no longer need it, the reality is that this could leave you out of pocket.
This is because many insurers will charge a penalty fee for ending a policy early and will also only pay you back a percentage of your remaining cover. For example, if you cancel a policy after three months you may only get back 50% of your premium; if you cancel it with three months remaining you may get nothing back at all.
Taking out temporary van insurance can massively reduce costs as you only take out cover for a specified period of time and so are not paying any extra for cover that you do not need.
Why take out short term van insurance?
There are a number of reasons that you may want to take out a temporary van insurance policy. For instance you may have borrowed a van if you are moving house, clearing clutter from your garage or collecting a large item that you have bought.
Whatever the reason, if you are borrowing a van for a short space of time then you will need to take out appropriate cover as you may not be fully covered by your regular policy.
This type of cover could also be beneficial for any business that has commercial vehicles that are only occasionally driven by its employees as policies can be tailored to cover certain drivers on certain days or weeks of the year.
The pros and cons with temporary van insurance cover
As outlined, the main benefit of taking out short term van insurance is that it will save you money.
This is because taking out a full 12-month policy will mean that you will be tied into paying for a year’s worth of cover that you simply will not use.
Even if you cancel the policy early you will have to still pay a cancellation fee that will be a percentage of the overall policy price.
However, in taking on short term cover you can tailor the cover to match your exact needs and only pay for what you use.
The main drawback of this type of cover is that you could end up paying more for your cover in the long run as it does not count towards an accumulation of a no claims discount (NCD), which can knock as much as 75% off the price of your premium.
So you will have to weigh up whether the savings you make by only insuring a vehicle in the short term will outweigh the savings you would make with a NCD. However, you should also keep in mind that to get the maximum 75% saving you need only accumulate five NCD and any subsequent years of claim-free driving do not contribute to a greater discount.
So if you already have five or more years of NCD then the fact that you can’t accumulate anymore on a short term policy will not be an issue.
Terms and conditions
As with other types of cover, the price of your premium will be adjusted according to your age, circumstances and length of cover required. Furthermore, some insurers place age restrictions on short term van insurance and so if you are below a certain age you may struggle to get cover.
In addition, short term van insurance is often only available to those with a full UK driving licence.
You also need to ensure that you do not exceed your allocated limits on both the length of cover and the amount of miles you can travel during this period as doing so will invalidate the policy.
So, for instance, if a policy ends at midnight on a certain date, if you are still driving the vehicle after this point then not only will you not be covered in the event of an accident but you will also be driving illegally and open to prosecution if caught. The same will apply if you exceed an agreed mileage limit.
Get cheap cover online
If you are looking for short term van insurance then using MoneySupermarket is a simple way to find the best priced policy to suit your needs. We compare over 100 insurance companies to find you the best deal available,
And there are numerous other ways that you can save on short cover for your van, for some ideas visit our van insurance money saving tips page.