Drive away insurance

What is drive away insurance?

It's a short-term car insurance policy that gives you cover by the hour.

A common reason for needing drive away insurance is when you’re buying a car as it lets you drive the vehicle home straightaway. Some dealerships may offer driveaway insurance which is free or included in your deal, but you should always ask the specifics of what this covers. You might also get this type of insurance if you’re picking up a car that a friend or relative of yours is buying.

It's a legal requirement to have car insurance on the road, despite how long or far you have to travel, so make sure you are covered in any situation as driving without insurance has serious consequences.

There’s quite a bit to think about when you’re buying a new or second-hand car. While annual insurance can also provide immediate cover, drive away insurance is a temporary solution, so you don’t have to sort out annual car insurance straight away. It gives you more time to look for the best deal on annual cover or add the car to an existing annual car insurance policy.

How much does drive away insurance cost?

The exact cost depends on a range of factors, including:

• The make and model of the car
• How many hours or days you need to be covered

On average, short-term cover for an hour costs £23*, but it's best to get a quote to see what you get for your own personal circumstances.

On an hourly basis, drive away insurance tends to be more expensive than annual cover. But it lets you choose exactly how many hours of cover you want.

Drive away insurance gives you flexibility and means you only pay for the cover you need.

What does drive away insurance cover?

These policies are typically only available as fully comprehensive car insurance. This means that it covers injury and damage caused to third parties and their vehicles or property. Plus, you and your car should be covered if you’re in an accident, no matter who’s at fault.

It's also possible to add another driver to your drive away insurance policy. Unnamed drivers usually aren't be covered. If anyone else is going to be driving the car apart from you, contact your drive away insurance provider and let them know.

If you have a no-claims bonus on another car, it shouldn’t be affected by any claims you make on a drive away insurance policy.

Can you tax a car with drive away insurance?

Yes you can. You need to have a valid insurance policy before you can tax a car - the maximum fine for driving an untaxed vehicle is £1,000 or five times the amount of tax chargeable, whichever is greater.

If you’re buying a brand new car from a dealership, they'll usually have sorted out the vehicle tax for you. But remember, you can't transfer car tax from one owner to another. If you’re buying a second-hand car, can use drive away insurance to tax the car.