Drive Away Insurance: Everything You Need to Know

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Car insurance is a legal requirement for every driver. If you’re buying a new car, you’ll need to have insurance in place before you can drive it off the forecourt. This is where drive away insurance comes in. In this article, we’ll be exploring everything you need to know about drive away insurance, including what it is, how it works, and the benefits and drawbacks of using it.

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What is Drive Away Insurance?

Drive away insurance, also known as temporary insurance, is a policy that provides short-term coverage for a newly purchased vehicle. The policy is designed to allow you to legally drive the car away from the dealership while you arrange a longer-term insurance policy. This is particularly useful if you’re buying a car from a private seller or an auction, where you won’t have access to an existing insurance policy.

Drive away insurance is typically available for a period of between one and 30 days, depending on the insurer. It’s often used by those who need to drive a vehicle for a short period, such as when borrowing a friend’s car or taking a test drive.

How Does Drive Away Insurance Work?

When you purchase a car from a dealership, the dealer may offer you drive away insurance. This will typically be an additional expense on top of the cost of the car, although some dealers may include it as part of the sale. You’ll need to provide the insurer with some basic information about yourself and the vehicle, such as your name, address, and the registration number of the car.

Once you’ve paid for the policy, you’ll be given a certificate of insurance that you can present to the dealership. This will enable you to drive the car away legally. It’s important to note that the policy will only cover you for the specified period, and you won’t be able to renew it once it has expired.

The Pros and Cons of Drive Away Insurance

Pros

There are several benefits to using drive away insurance:

Pros
Cons
Provides immediate coverage
Only provides short-term coverage
Enables you to legally drive a newly purchased vehicle
May be more expensive than a longer-term policy
No need to commit to a longer-term policy straight away
May have limited coverage options

Cons

Despite the benefits of drive away insurance, there are some drawbacks to consider:

  • Drive away insurance only provides short-term coverage – typically, between one and 30 days. This means you’ll need to arrange a longer-term policy before your drive away insurance expires.
  • The cost of drive away insurance can be more expensive than a longer-term policy. You may end up paying more for the convenience of immediate coverage.
  • Some insurers may have limited coverage options for drive away insurance policies. You may find that you’re not able to get the level of coverage you need.

FAQ

Do I need drive away insurance?

If you’re buying a car from a dealership, they will typically arrange drive away insurance for you. However, if you’re buying a car from a private seller or an auction, you’ll need to arrange your own insurance. Drive away insurance can be a good option in this situation.

How long does drive away insurance last?

Drive away insurance typically lasts between one and 30 days, depending on the insurer. You’ll need to arrange a longer-term policy before your drive away insurance expires.

Is drive away insurance more expensive than a longer-term policy?

Drive away insurance can be more expensive than a longer-term policy. However, this will depend on a range of factors, including the type of car you’re insuring and the level of coverage you need.

Can I renew my drive away insurance?

No, drive away insurance is a short-term policy that cannot be renewed. Once the policy has expired, you’ll need to arrange a longer-term insurance policy to ensure that you’re fully covered.

Can I use drive away insurance for a test drive?

Yes, drive away insurance can be used for a test drive. However, you’ll need to check with the insurer to ensure that you’re covered for this purpose.

Final Thoughts

Drive away insurance can be a useful option if you need to drive a newly purchased vehicle before arranging a longer-term insurance policy. However, it’s important to weigh up the benefits and drawbacks before deciding whether it’s the right option for you. Be sure to shop around and compare policies from different insurers to ensure that you get the best coverage at the most affordable price.

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