The Latest Method of ownership of a vehicle Applying new requiremnet on the part of the vehicle’s driver. The classic form of contracting car insurance for a period of one year has had to be readapted to the demands of those drivers who only need a compulsory policy during certain months, weeks or even days.
Contracting car insurance for months was already a common practice in other European countries such as Germany or the United Kingdom. In Spain, this alternative still hasn’t had much run-in, but it is becoming a common query for insurance companies. Although it can be an economic solution in some cases, it must be taken into account that Spanish legislation has its own requirements in relation to vehicle insurance. We must not lose sight of them when assessing the suitability of this type of alternative.
Is it worth taking out car insurance for months?
If the car is only going to be used for certain periods of the year, why insure it for a full year? It is logical to consider the suitability of annual car insurance , but hiring a policy for months is not always the solution.
· Advantages of a monthly policy
The monthly payment of an insurance policy for a limited time can be advantageous when the vehicle is parked in a second residence that is only visited on an occasional basis. It is possible that the car will only be used during vacation times. Monthly insurance is better suited to this condition, as well as those circumstances in which the import/export of the vehicle is being processed or is waiting to pass the ITV.
This system should not be confused with that of an installment payment. An insurance policy for months does not mean paying an annual fee in several monthly installments, but rather reducing the validity of the insurance to certain periods of the year (even weeks or days) and, consequently, also reducing its cost.
· Disadvantages of a monthly policy
There is one law in european states that all cars, including those that will remain temporarily parked in the garage, must have at least civil normal liability insurance.. That is, there is always a mandatory minimum expense.
On the other hand, the price of insurance for months, weeks or days has a proportional cost much higher than the classic annual insurance. The freedom to pay for a whole year and disregard compulsory insurance can be an advantage if the total cost is valued.
It should also be noted that the insurers that offer these products may include their own restrictions by type of vehicle or age and experience of the driver. Moreover, there is no insurance for months for motorhomes, quads and vans. Temporality can also affect the guarantees, which sometimes differ greatly from those of extended or standard insurance .