Driveaway insurance is a type of short-term or temporary car insurance. It is designed specifically for people who have just bought a vehicle and need to get it from the seller’s location to their own home.
Instead of signing up for a full 12-month policy while you are standing on a dealer’s forecourt, you can buy a policy that lasts anywhere from one hour to 30 days. This gives you a “bridge” of coverage. It protects you legally and financially while you take your time to shop around for the best annual insurance deal later.
Key Features of Driveaway Cover:
- Instant Start: You can usually get covered in about 15 minutes.
- Comprehensive Protection: Most driveaway policies offer the highest level of cover (Comprehensive), meaning both you and the car are protected even if an accident is your fault.
- Standalone Policy: It does not affect any existing insurance you might have. If you have a claim on a driveaway policy, it won’t ruin the No Claims Discount (NCD) on your main annual policy.
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Why Do You Need Driveaway Insurance?
Many people assume they are covered to drive a new car home, but this is often a mistake. Here are the main reasons why you should never drive away without specific cover.
1. It is the Law
In the UK, it is illegal to drive on public roads without at least third-party insurance. If you are caught, the penalties are harsh:
- An unlimited fine.
- 6 penalty points on your licence.
- The police can seize (and even destroy) your brand-new car.
- You could even be disqualified from driving.
2. “Driving Other Cars” Extension Limits
You might think your current annual policy covers you to drive other cars. However, most modern policies only offer this for cars you don’t own. Once you have paid the seller and the car is yours, that “driving other cars” extension usually stops working. Even if it did work, it almost always provides only “Third Party Only” cover, leaving your new investment at risk.
3. Taxing Your Vehicle
To tax your car online or at a Post Office, the vehicle must be showing as insured on the National Insurance Database. Since car tax is no longer transferable between owners, you must tax the car before you pull out onto the road. Driveaway insurance allows you to do this immediately.
How Much Does Driveaway Insurance Cost?
The price of driveaway insurance depends on a few things, like your age, the car’s value, and how long you need the cover for. On average, you can expect to pay:
- 1 Hour: Around £15 – £20
- 1 Day: Around £20 – £40
- 1 Week: Around £80 – £120
Note: These are estimates. Prices vary based on your driving history and the insurance group of the car.
Factors That Affect the Price:
- The Car: High-performance or luxury cars cost more to insure.
- Your Record: If you have a clean licence and no recent claims, you will get a better price.
- Duration: Buying a week of cover is cheaper per day than buying seven separate one-day policies.
Who is Eligible?
While driveaway insurance is easy to get, there are some basic rules you need to follow. Most providers have the following criteria:
- Age: Usually between 18 and 75 (some specialist providers cover 17-year-olds).
- Licence: You must hold a full UK or EU driving licence (usually for at least 6-12 months).
- Vehicle Value: The car is typically valued between £1,500 and £60,000.
- Condition: The car must be roadworthy and have a valid MOT (unless you are driving it to a pre-booked MOT appointment).
Driveaway Insurance vs. Annual Insurance
| Duration | 1 hour to 30 days | 12 months |
| Setup Time | Minutes | Can take longer to compare |
| No Claims Discount | Not earned/affected | Earned and used |
| Cost | Cheap for short bursts | Cheaper for long-term use |
| Flexibility | Extremely high | Lower (cancellation fees apply) |
Related Terms
When looking for the best deal, you might see these terms used:
- Temporary Car Insurance: The broad category that driveaway insurance falls into.
- Short-Term Vehicle Cover: Another name for the same product.
- Day Insurance: Policies specifically for 24 hours.
- Impound Insurance: A specific type of temporary cover used to get a car out of a police pound.
- Test Drive Insurance: Cover used specifically to try out a car before you buy it.
How to Get Driveaway Insurance Online
Getting a quote is very simple. You don’t need to fill out pages of paperwork. You will generally just need:
- Your Personal Details: Name, address, date of birth, and occupation.
- Driving History: Your licence number and any recent accidents or points.
- Vehicle Details: The registration number (number plate) of the new car.
- Start Time: Exactly when you want the cover to begin.
Once you pay, your documents are usually emailed to you instantly. You can then show these to the dealer or the police if you are stopped.
Frequently Asked Questions (FAQ)
Can I get driveaway insurance for a van?
Yes. Many providers offer driveaway van insurance with the same quick setup. This is perfect if you’ve bought a van for a house move or for a new business.
Does it cover me in Europe?
Most basic driveaway policies cover you for the UK only. However, some allow you to add “European Cover” as an extra if you are planning to drive your new car abroad immediately.
What if I need longer than a few days?
Most providers let you extend your policy online. If you find that your annual insurance is taking longer to set up than expected, you can usually add a few more days to your temporary cover with just a few clicks.
Is the seller’s insurance still valid for me?
No. Insurance is personal to the owner. The moment the car changes hands, the seller’s insurance no longer covers that vehicle for your use.
Summary: Stay Safe and Legal
Driveaway insurance is the “safety net” every car buyer needs. It removes the stress of trying to find a permanent policy while you are busy inspecting your new vehicle. For the cost of a few cups of coffee, you get total peace of mind and protection from heavy fines or points on your licence.
Sources for Further Reading:
- GOV.UK: Vehicle Insurance Requirements
- Financial Conduct Authority (FCA): About Insurance Providers
- Motor Insurers’ Bureau (MIB): The Risks of Uninsured Driving