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 Short
Term Cover Restrictions
As with any type of cover, short term cover has a series of restrictions.
Insurers have restrictions both on to whom they offer cover and to vehicle
use after cover is purchased.
Motorist Eligibility Restrictions
Not everyone is eligible for short term cover. Insurers take many factors
into account, especially driving history and age, and will refuse cover if
a motorist is considered too risky. The importance of driving history is
understandable since it provides evidence of past driving behaviour.
Insurers vary on how many licence points or claims they find acceptable,
so motorists with spotty records may want to check before applying. The
more difficult restrictions are those on age. Young drivers are at a
disadvantage when applying for short term cover. Many insurers will not
provide cover for young drivers because they represent an unacceptable
risk; young drivers get into the most accidents, the most damaging
accidents, and the highest proportion of fatal accidents. Many insurers
won't offer temporary cover to anyone under age 25. Some may accept those
age 23 and over and a very few will offer to cover those age 21 and over.
Between the ages of 17 and 21, however, temporary cover is not available.
The youngest drivers who need temporary cover may have to purchase a
pay-as-you-go policy and then cancel after one month, even if they need
only a day's cover. It's not the best scenario, but at least it offers
some way to comply with the law.
Restrictions on Use
Once motorists have purchased short term cover, insurers place many
restrictions on how they may use the car. Driving the car for hire or
reward is forbidden by insurers. Many also forbid using the car for racing
or competition of any kind. So, too, with using cars off-road. Many
restrict where one may take the car, perhaps limiting the car's use at
airfields. Policies will not cover damage due to the transportation of
toxic or hazardous materials. Cover will not apply if the car is driven by
anyone other than the motorist who purchased the cover or another named
driver. When applying for cover, motorists input what type of use for
which they would like cover, whether it be leisure, commuting, business,
or otherwise. If there is an accident whilst the car is used for something
not allowed under the type of use the motorist elected, cover will not
apply.
Motorists should make sure that all information they provide to insurers
is accurate. They should also read their policy documents, even for
temporary cover lasting a single day. It's in their best interest to know
precisely what is allowed and what is not.
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