Car with banner 'buy car insurance for one day'

One day policies - what use are they?

Short-term car insurance policies, particularly those for one single day, became very popular as a result of the widespread use of computerisation linked to Internet technology which made it an economical proposition for policies for very short lengths of time to be written. Before this the cost involved in getting an insurance broker to contact insurers to negotiate very small premiums simply would not have been viable in most cases. Temporary car insurance cover is therefore very much a child of the Internet.

What has really made sales take off however has been the widespread adaptation of smart phones and tablets such as iPods and Kindles. According to recent figures around 62% of the population of the UK own at least one smart phone and 80% of them never leave home without it. In addition to this around 30% of us own tablet devices and numbers are increasing rapidly.

All this means that a short-term car insurance policy can be purchased by a very large proportion of the population very quickly and at any time of day or night. As a product which is really useful for emergency use, when a motorist needs to drive a car at short notice, this has meant a great surge in popularity for very short period policies of a single day or so.

The traditional uses of temporary insurance are also growing steadily as more and more people get to know about it and with more than half a million policies already sold it is rapidly becoming a mainstream rather than a niche purchase. Motorists whose own car is off the road for a few days, friends who wish to share driving on long holidays, children home from college or uni for a couple of weeks, and potential buyers test driving vehicles or driving them home after purchase, are increasingly finding it so useful that the level of repeat purchase is extremely high.

Is the day of the annual renewal now over? Not by any means, short-term cover is designed to be used on odd occasions only, when it is simply uneconomical to buy a full year's cover on a car which may only be driven for a few days or a few weeks at the most. Nevertheless it has now become widely recognised as a reliable and essential facility that every motorist should be aware of - because you never know when you might need it in a hurry.