Insurance
Annual vs temporary car insurance: Which is right for you?
Is it worth getting temp or paying annually?
Ryan Barham
Last updated: 12/08/2025
Ryan Barham
Last updated: 12/08/2025
Have you ever needed a vehicle, but only for a short amount of time? Temporary car insurance could be the answer. Whether borrowing one with more space or needing to get around while yours is in the garage for repairs or an MOT, there’s cover for every moment.
Some people who rarely drive may even find it cost-effective to take out temporary car insurance on the occasions they drive, rather than paying for a year’s worth of cover. If you are one of them, just make sure your car is registered SORN when there’s no insurance.
Temporary car insurance is short-term cover that keeps you moving, even if you don’t have your own car. With Tempcover, it’s available from one hour to 28 days and can be used for various reasons, including:
Temporary car insurance gets you on the road fast. It’s easy to arrange, fully comprehensive and flexible so you only pay for the time you need.
Temporary insurance is not a replacement for yearly policies. It can be used alongside them. Sometimes, even though you only pay for the time you need temporary insurance can work out more expensive. You also won’t be able to build up a no claims discount with it.
It’s quick and easy to get temporary car insurance. Just head to Tempcover.com and do the following:
Tempcover works with a range of insurers and will automatically offer you the cheapest and most suitable option for your needs.
It isn’t! Getting temporary car insurance is actually a quick and easy process, especially with Tempcover. Just be aware that eligibility depends on factors including your age, driving history and the vehicle itself. How old do you need to be for temporary car insurance? We cover drivers aged between 17 and 78.
Temporary insurance will expire at the time you suggest, but it’s simple to get another policy. Just follow the same process as above and you’ll soon be on the road again. Just be aware that annual car insurance is likely to be more cost-effective for long-term needs. Only need a car for a day, week or month? Try temporary car insurance.
Regular drivers and vehicle owners may find an annual policy fits their needs better. This is because paying yearly - either in one payment or monthly segments - can work out cheaper overall and provide peace of mind whenever you drive.
Annual insurance also allows you to build up a no claims discount for every year you drive without making a claim. This can contribute to significant savings in years to come. Temporary insurance has no impact on no claims.
There might also be a wider selection of add-ons available with an annual policy. At the moment, Tempcover offers breakdown assistance but with a year-long policy you may be able to get legal protection and no claims discount protection.
Annual | Temporary | |
Cover level | Comprehensive, third party or third party, fire and theft | Comprehensive as standard (third party for European policies) |
No Claims | Will be affected in event of a claim | No impact on owner’s discount in event of a claim |
Adding a new driver | Can increase the cost of the policy | No impact on annual policy |
Time duration | 365 days | One hour to 28 days |
Time taken to get a quote | Varies depending on research, amends and policy | Under 2 minutes |
Annual and temporary car insurance cater for different needs. There are positives for using both, depending on your individual driving habits. Factor in what you’re using the car for and how often before making a commitment to either.
Remember, even if you have a year’s worth of insurance, you can take out a comprehensive temporary car insurance policy to drive someone else’s car.
Of course, this is one of the main reasons people take out temporary car insurance - whether on a road trip with a friend or needing to borrow a parent’s when your car’s in the garage and you’re at a loose end.
Some annual insurance policies may contain the driving other cars clause but this is becoming rarer and temporary car insurance is comprehensive as standard - meaning no impact on the owner’s no claims bonus, even if the worst was to happen.
Although you can’t make any changes once a policy has been purchased, you are able to cancel a policy by contacting Tempcover. Due to the short-term nature of our policies, refunds are not available once cover has commenced.
In line with rules set by the Financial Conduct Authority, a full refund can be offered if the policy has not yet started.
If your temporary car insurance has expired, it’s easy to get a new policy using the exact same method. Enter some details about you and the vehicle, choose how long you need cover for, get your quote and pay.
Immediately following the accident, you should stop at the scene, turn on your hazard lights and check everyone involved is safe. If anyone is injured, call an ambulance. Try to keep calm and swap details with any other parties involved.
Take photos of any damage to the vehicles and their registration numbers. Don’t apologise or admit responsibility at the scene and take the details of any witnesses. For more information, check out our how does car insurance work blog post.
Call the insurer as soon as possible on the number displayed on your temporary Certificate of Motor Insurance or policy wording. Your insurer will talk you through the process and collect details of the claim. If applicable, they’ll arrange repairs and a replacement vehicle.
You need insurance to drive any car on a public road in the UK. This includes when you’re picking up a brand new car and taking it home. You can either transfer over your existing policy, which may involve a small uplift and/or admin fee, or take out cover for an hour or two. This lets you bring the car home and take your time to find the right policy for your needs.
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Temporary Car Insurance