A prime prerogative consideration while purchasing a new automobile, transporting a car over a long distance, or when operating an auto delivery business is insurance.
If you find yourself in a specific situation, for example, not planning to keep the automobile for an extended time, traditional car insurance may not suffice. That is exactly the situation where driveaway insurance comes to the rescue.
In this guide, you’ll learn driveaway insurance in detail: its definition, operation, coverage, timing aspects, and choosing a suitable policy.
Whether you are an individual on the go or part of the auto trade, with a clear understanding of such insurance not only saves time and effort, but also money.
1. What Is Driveaway Insurance?
As the name suggests, driveaway insurance is moveable car insurance.
It assigns a specific vehicle to a driver and authorizes them to operate it within specified confines; commonly from a dealership or private seller to their site of choice.
Coverage is geared towards a period from 1 hour to 30 days, depending on the provider.
Driveaway insurance differs from conventional auto insurance which binds you to a contract spanning over months or years.
If you are looking for versatility and flexibility with one-off trips or singular deliveries, driveaway insurance is the answer.
2. Who Needs Driveaway Insurance?
Many individuals can benefit from having driveaway insurance which can be helpful in the following situations:
Car Buyers: If you fall into the category of those who purchase vehicles and have not yet arranged for an insurance policy to be in place.
Car Dealers: If they are required to transport stock cars from one location to another.
Car Delivery Drivers: Individuals who are employed to deliver vehicles on behalf of clients or rental agencies.
Auction Buyers: Individuals purchasing vehicles at an auction but do not have an alternative means to return the vehicle.
Expats or Visitors: Individuals on a temporary basis who wish to use a car without actually buying or renting it.
Private Sellers: People who would like to let prospective buyers test-drive or dispose of the car.
3. Key Features of Driveaway Insurance
The characteristics included in a driveaway policy that can be deemed good are outlined below:
a. Coverage Available on Request
Depending on the provider, coverage can be issued for a minimum of one hour to a month. This is optimal for providers looking to meet a single-use request.
b. Immediate Start
Most companies are able to provide quotes online and get you insured within the first few minutes.
c. Deviations from the Policy on Age Restriction
Policies usually address:
– Drivers between the ages of 18 and 75
– Holders of a full driver’s license
– Individuals with a clean (or minor) driving record
d. Vehicle Eligibility
The following seem to fall under the scope of driveaway insurance:
– Cars, vans, and pickup trucks
– Under a specified value or weight limit
– Vehicles that are registered and in roadworthy condition
4. What Does Driveaway Insurance Cover?
Most providers of driveaway insurance seem to offer comprehensive coverage although this may vary from one country to another or from one provider to another.
Typical inclusions:
– Accidental Damage to the vehicle
– Theft of the insured vehicle during the premium period
– Third party liability for injury or damage to other people
– Expenses for Fire and Vandalism
– Damage to Windscreen and Window
– Cost for towing and recovery
What’s Not Usually Covered:
– Damage that existed prior to the issuance of the policy
– Use of the vehicle for business (unless otherwise noted)
– Unroadworthy or unregistered vehicles
– Driving under the influence
– Driver history not disclosed
5. Advantages of Driveaway Insurance
a. Compliance with the Law
Legal liability is required while driving a new or temporary car home, and this helps prevent any possible penalties related to driver’s license.
b. Risk Management
For a short trip, your expenses may exceed thousands in case of an accident. Driveaway insurance takes care of that.
c. Simplicity
The policy can be activated online with no delay, and it has favorable terms that make it appealing for urgent or short-term use.
d. No Change in Your Primary Insurance Policy
In the case of an accident, your no-claims bonus or primary insurance remains intact while using temporary driveaway insurance.
6. Most Common Applications
These are examples of situations in which driveaway insurance is practical.
Example 1: Buying a Car from a Private Seller
You just purchased a car from a private seller and want to drive it home. Rather than waiting for setting up annual insurance, a 24-hour driveaway policy allows you to drive home legally.
Example 2: Test Driving a High-End Car
A high-value car is available for a test drive at a dealership. They offer a driveaway policy that covers potential buyers for the duration of the test drive.
Example 3: Car Delivery Business
You operate a business that delivers cars for dealerships cross-city. Driveaway insurance for commercial purposes ensures all deliveries are protected legally and efficiently.
7. Differences Between Driveaway Insurance and Temporary Car Insurance
These two types of insurance may seem alike, but their features differ slightly:
- Feature Driveaway Insurance Temporary Car Insurance
- Purpose For transporting or testing vehicles For borrowing or for short-term use
- Who It’s For Buyers, sellers, dealers, drivers Friends, family, short-term drivers
- Coverage Duration 1 hour to 30 days 1 hour to 30 days
- Vehicle Ownership Often used before full ownership Usually for cars already owned by someone else
Most sources consider these two terms interchangeable, but driveaway insurance tends to underscore the focus of vehicle transport or acquisition.
8. How to Get Driveaway Insurance
Step 1: Choose a Provider
- Tempcover
- Dayinsure
- Cuvva (UK Based)
- Progressive or Geico (For US Based – for similar use)
- Look for trusted brands such as these.
Step 2: Fill In The Required Information
Your details should include:
- Driver license details
- Vehicle registration or VIN
- Supervision time
- Proof of purchase if applicable
Step 3: Obtain A Quote and Make Payment
- Pay the required amount securely online after you confirm your details.
Step 4: Download The Certificate
You should always have printed or digital form of the certificate while driving.
9. How Much Does Driveaway Insurance Cost?
The price depends on the following factors:
- Coverage
- Duration
- Age and Record of Driver
- Vehicle Make and Model
Example Pricing:
$15–$30 for one-day driveaway insurance coverage.
$25–$60 for three-day policy coverage.
$40–$100 for one week policy.
Discounted rates often apply for policies with longer durations.
10. Is Driveaway Insurance Available Everywhere?
Not all countries offer “driveaway insurance” by that exact name, but temporary vehicle insurance options exist in:
UK
USA
Canada
Australia
European Union Countries
Always check with local providers o brokers for legal coverage requirements and policy availabilities.
11. How To Choose The Right Policy Tips:
Always read the fine print: Ensure that you check if all exclusions pertaining to coverage gaps and restrictions are highlighted.
- Use online tools that offer comparison policies to get the best quote.
- Make sure to check vehicle eligibility especially for modified or imported vehicles that carry high value.
- Reviews enable customers find reliable insurers so do consider them.
In case the trip takes longer than anticipated, consider extension options for coverage.
12. Final Reflections: Is Driveaway Insurance Worth It?
If your situation necessitates a temporary vehicle use, then driveaway insurance, is legal, inexpensive, and efficient. This peace provider avoids long-term contracts, while protecting you financially.
Driveaway insurance is ideal when attending a newly bought car’s road trip, test-driving dealership vehicles, or while cross country car deliveries, filling the gaps conventional auto insurances often skip.
Frequently Asked Questions (FAQs)
Q1. Can I apply driveaway insurance onto a leased or financed vehicle?
Yes, provided that the leasing company permits it, and the vehicle meets other eligibility requirements. Check with the insurance, as well as the finance company.
Q2. Does driveaway insurance impact my no-claims bonus?
No. Driveaway Insurance’s claim independence guarantees that your existing insurance policy will remain intact.
Q3. Is it possible to expand the policy if the need arises?
Some providers allow it, but it is advisable to contact them before your original policy expires.
Q4. Is a vehicle owner needed to purchase driveaway insurance?
No, as long as the vehicle is intended for transport or test drive purposes, a person does not need to be the registered owner.
Q5. Can the driveaway insurance be used globally, including outside my country?
Some policies do provide internationally (UK to EU) but you should verify directly with the provider for specific region restrictions.