Monthly Car Insurance
Monthly car insurance occupies a useful middle ground in the UK market. Designed for drivers needing legal cover for around 30 days without committing to a full annual policy—perfect for relocations, seasonal work, or lending a car to visiting family.
Key Advantages
Flexibility
Match policy length to your actual needs—avoid paying for months you don't require.
Separate Risk
Claims won't affect the car owner's no-claims discount—perfect for family vehicle sharing.
Convenience
Digital setup with immediate certificates—purchase on your smartphone and drive the same day.
No Lock-In
No early cancellation fees or long contracts—stop, renew, or switch with minimal friction.
How It Works
A monthly policy provides comprehensive cover for thirty consecutive days, beginning at a specific time you choose:
Apply Online
Insurers verify licence details, run risk checks, and ask about the vehicle and usage.
Choose Your Start Time
Select when your 30-day cover begins—there's no ambiguity about start and end dates.
Get Instant Certificate
Receive your digital insurance certificate immediately on your smartphone.
Renew or Stop
At month's end, renew for another 30 days or switch to a different product altogether.
Who Uses Monthly Insurance?
Relocations
Professionals moving cities who need a car whilst settling housing and transport.
Seasonal Work
Contractors on short-term projects or graduates on summer placements.
Family Sharing
Parents lending cars to adult children or relatives visiting from abroad.
Vehicle Delays
Drivers awaiting delivery of a new car or waiting for repairs to complete.
Students
University students home for summer who need a car for work or errands.
Business Gaps
Companies covering staff when company cars are delayed or unavailable.
Legal Framework
Road Traffic Act 1988
Requires at least third-party cover. Monthly policies typically exceed this with comprehensive protection.
Continuous Insurance Enforcement (CIE)
Vehicles on public roads must be continuously insured unless declared SORN. Plan carefully to avoid uninsured gaps.
FCA Regulation
Financial Conduct Authority requires clear communications, fair treatment, and appropriate pricing oversight.
Data Protection
If telematics is used, insurers must comply with the Data Protection Act 2018 and UK GDPR.
Limitations to Consider
Higher Per-Day Cost
Monthly insurance costs more per day than annual policies spread across twelve months.
Age Restrictions
Many providers restrict monthly policies to drivers aged 21-75. Under-21s face limited options.
Usage Exclusions
Some policies exclude towing, hire and reward activities, or driving abroad.
Not for Long-Term
If you need a car for most of the year, an annual policy will almost always be better value.
Frequently Asked Questions
What does comprehensive monthly cover include?
Third-party liability plus protection for accidental damage, theft, and fire. Windscreen cover or courtesy cars may vary—check your schedule.
Can I drive abroad on a monthly policy?
Some providers include minimum EU cover; others exclude international travel. Check territorial limits before booking travel.
Does monthly insurance build a no-claims discount?
Policies differ. Some recognise claim-free months; others don't award formal NCD. Ask your provider about NCB recognition.
What about young drivers under 21?
Eligibility can be tight with higher excesses. Consider young-driver or telematics products instead.
Does it cover commuting and business use?
Not always. Many policies default to social use only—ensure you select the correct usage options.
What if my circumstances change mid-month?
Most providers allow mid-term changes for new addresses or parking situations, though admin fees may apply.