Got a new car but not sorted permanent insurance yet? Here’s what to do

Can You Drive a New Car Without Insurance?

In short – no. In the UK, it’s a legal requirement to have at least third-party insurance before driving on public roads. Driving without cover could land you with fines, points on your licence, or even worse, your car could be seized.

If you've just picked up your new car, you need to have insurance in place before you get behind the wheel. But if you haven't finalised your long-term policy yet, what can you do?

Temporary Solutions Whilst You Arrange Permanent Cover

If you haven’t found the right permanent policy yet, you don’t need to panic. There are a few ways to stay insured whilst you weigh up your options:

• Short-Term Insurance: This can provide cover for a few hours, days, or even weeks whilst you finalise your long-term policy.
• Dealer-Included Insurance: Some dealerships offer 'free' temporary cover when you buy a car, so check if this applies. Do bear in mind though that if you arrange your own insurance you may be able to negotiate a price reduction - these policies might come with a hefty profit for the dealar.
• Adding to an Existing Policy: If you already have a policy on another vehicle, your insurer might offer a short-term option to add your new car.

Why Consider Short-Term Insurance?

If you need to get your car home or use it whilst arranging long-term cover, temporary insurance could be a useful option. Here’s why:

• Immediate Cover: Some policies can be arranged in minutes, meaning you don’t have to leave your car stranded.
• Flexible Duration: You can get cover for just a few hours or days, which is useful if you’re still comparing long-term policies.
• Standalone Cover: A short-term policy is separate from any other insurance you have, meaning it won’t affect a no-claims bonus on another vehicle.

Alternatives to Short-Term Insurance

Whilst temporary cover can be a convenient option, there are alternatives:

• Transferring an Existing Policy: If you already have insurance on another car, your insurer may allow you to transfer your policy to the new vehicle.
• Buying Annual Cover Straight Away: If you’ve done your research, setting up a long-term policy immediately could save time and hassle.
• Using Dealer Insurance: Some dealerships provide short-term cover when you buy a car – check if this applies to you.

What If You're Buying Privately?

Buying from a private seller means you’re responsible for arranging insurance before you drive the car away. Unlike dealerships, private sellers won’t provide temporary cover. If you’re picking up a car from a private seller, it’s close to irreplaceable to arrange insurance before you set off.

What happens if you’re uninsured for just one journey?

Driving uninsured isn’t just risky – it’s illegal. Here’s what could happen:

• Fines and Points: You could receive a fine and penalty points on your licence.
• Car Seizure: Police have the authority to seize and even destroy uninsured vehicles.
• Higher Future Premiums: Insurers may consider you high-risk if you’re caught driving without cover.

How to Avoid Last-Minute Insurance Panic

To make sure you don’t end up scrambling for insurance at the last minute, consider these tips:

• Research Policies in Advance: If you’re planning to buy a car, start looking at insurance options beforehand.
• Check for Dealer Cover: Ask the dealership whether they offer temporary cover with your purchase.
• Consider Short-Term Insurance as a Backup: If you’re unsure which long-term policy to choose, a temporary policy could buy you time.

Closing Reflections:

Sorting out insurance for your new car doesn’t have to be stressful. Whilst you need insurance in place before driving, there are temporary options to keep you covered whilst you finalise a long-term policy. Whether you opt for short-term cover or transfer an existing policy, the key is to make sure you’re legally insured before hitting the road.

If you need insurance quickly, click below for more information on short-term cover.