As a result of the high rise in accidents across the world, most countries and states have made it a rule for every car on the road to have car insurance.

day car insurance

The essence is to ensure that no driver serves as a threat to another driver on the road. Hence, even when the driver is not covered or the car is not completely covered, most individuals or drivers are required to have a third party cover.  While the idea of each vehicle having a car insurance plan or policy in place before being on the road sounds like a great idea, it poses a few challenges. What if the car was borrowed or rented? What if I am using the car for just a short period? These challenges were the reasons for the birth of short term car insurance, also known as one day car insurance.

One day car insurance is a form of insurance contract that is entered into for a car insurance that lasts one day. Not necessarily always a day, the term is relative. It could be for five days, a week, or any other short term period. Consequently, it covers the driver for that period of time. The use of one day car insurance has been rampant over the years. This is as a result of so many factors that are peculiar to this day and age. However, there are a few factors that could make the use of one day car insurance work somewhat counterproductively. There are certain disadvantages of using this form of short term insurance or any short term insurance coverage plan. So if you were already thinking of getting one, here are some reasons why you may have to think again.

  • Renewals are not guaranteed

While using regular insurance plans, renewals can be automatic – you simply need to pay when you are required to. However, while using a one day car insurance, you do not enjoy this. Typically, day car insurance is for a period of 1 – 28 days. As such, the insurance provider would not be obliged to renew your insurance policy. In other words, once your policy expires, you would have to re-apply and hope to obtain approval once again. So if you planned to use two days, and got a 2-day insurance plan as such, if for any reason you need to use one more day, you would need to re-apply for an insurance plan.

Depending on the frequency of these actions, it can go from “not a big deal” to a whole lot of stress in no time. If you are one that borrows or rents cars, short term insurance might work for you; however, you may soon get tired of using this insurance policy as it would be troublesome. There are other types of insurance policies that would cater for your needs more appropriately. These plans may offer much better deals that would be renewed with ease for all its users rather than a one day car insurance plan.

  • It is costlier for those who use it a lot

Okay, this seems somewhat contradictory. One of the commonest reasons people use one day car insurance is that it is cheaper to get. So if you do not use your car often, or you use it occasionally, then it make a whole lot of sense to get one. However, if the number of days you use the car is more than the days that the car is not used, you would end up paying way more than you should pay for your insurance. This could be subjective, however. Since all insurance policies have grades that are majorly ranked against quality of service, it would be cheaper or more expensive depending on the nature of plan you are on.

Basically, when you get the usual yearly insurance coverage plan, you enjoy economies of scale. In other words, it is cheaper than when you pay for it on a daily or weekly basis. So if you are one that would use your car or uncle’s car many times during the period of one year, a little research would show you cheaper options of car insurance. Day car insurance would serve as a waste of money and time for you. Again, it is better to compare likes together. It could work the other way round if you are comparing a cheap day insurance plan to a generally expensive insurance plan.

  • Not available for under-21 year olds

Most companies that offer short term car insurance or one day car insurance, clearly state that the age range is for individuals who are between 21 and 75 years old. In essence, an 18-year old cannot get a temporary car insurance. The irony of this is that it is usually the youngsters that need the one day car insurance. Why? Well, because they are the ones that would usually not have cars and need to borrow cars from older friends and relatives. Emphasis should however be laid on “most”. A few insurance providers cover individuals who are younger than 21. However, it would cost higher than others who are older with the same policy would have to pay.

To even crown it, the few insurance providers that offer one day car insurance coverage for those who are younger than 21 would set really stringent rules and criteria. They include: he or she must have held a valid driving licence for at least 12 months, he or she must not have eight or more penalty points on his or her licence, and of course must not have any pending prosecutions. The reasons for these rules are apparent. Teenagers or individuals who are in that age range are perceived to be reckless. Young drivers are more likely to be involved in accidents and make insurance claims, so car insurers charge the individuals more. So it could be very expensive for the providers if these measures are not kept in place.

There are still many advantages of the one day car insurance policies. A little research, and you would be able to find a trade-off with these disadvantages.

LEAVE A REPLY