Brits borrowing the family car can now shop around for temporary insurance lasting from as little as one hour, following the launch of a new proposition from Compare the Market.
The price comparison website has launched a temporary car insurance panel offering flexible cover ranging from one hour to 28 days, aimed at motorists who only need to use a vehicle occasionally.
It could offer an alternative for drivers borrowing a parent or family member’s car for a particular journey, learners getting extra practice behind the wheel, or young adults who need access to the family car while home from university.
Borrowing the family car
The launch comes as new research commissioned by Compare the Market reveals just how reliant many young drivers are on the family car – and the financial impact this can have on their parents.
A third of parents with a child aged 17 or over said they currently lend, or have previously lent, their car to their child or young adult.
And it is far from an occasional favour for some households. Seven in 10 (69 per cent) parents who share their car said their child borrows or borrowed it at least once a week, while 37 per cent said it happened several times a week or more.
Almost half (48 per cent) have even changed or given up their own plans because their child needed to use the vehicle.
What is temporary car insurance?
Temporary car insurance is designed to cover a driver for a shorter period than a conventional annual policy.
Compare the Market’s new panel allows motorists to shop around for temporary policies offering cover from as little as one hour up to 28 days.
That could make it an option when someone needs to borrow a family member’s vehicle for a specific journey or short period, rather than being added to the car owner’s existing annual policy as an occasional driver.
For example, temporary cover could be considered by someone borrowing their parents’ car for a weekend, a learner practising in the family car, or a young adult who needs a vehicle while home from university.
Compare the Market says that for families where a car is only borrowed occasionally, temporary insurance can provide flexible cover for individual journeys and potentially avoid the need and added expense of adding an occasional driver to an existing annual policy.
Motorists should still compare the cost and terms of different options, including the level of cover and eligibility requirements, to establish which type of insurance is appropriate for their circumstances.
Family car is becoming the new ‘Bank of Mum and Dad’
Compare the Market’s research suggests the family car is increasingly another way parents are financially supporting their children.
Parents who have shared their vehicle estimate they spend an additional £525 a year on average as a result, taking into account costs including insurance, fuel, servicing and repairs, tyres and parking.
More than nine in 10 (94 per cent) parents who have shared their car said they had helped pay for at least one cost to keep their child on the road.
Insurance was the most common, with 55 per cent helping to cover it, followed by fuel at 48 per cent and servicing or repairs at 27 per cent.
Four in 10 said they make their vehicle available because their child cannot afford a car of their own.
Learning to drive is the biggest reason for borrowing the family car, cited by 59 per cent of parents who share their vehicle.
That was followed by building confidence after passing a driving test (20 per cent), visiting friends or family (19 per cent), social trips such as going to the cinema or restaurants (16 per cent), and shopping and essential errands (14 per cent).
Other reasons included travelling to work (13 per cent), getting to school or college (8 per cent), using the car while home from university (7 per cent), emergencies (7 per cent) and travelling to job interviews (6 per cent).
Two in five parents unaware of one-hour car insurance
Despite the prevalence of family car sharing, Compare the Market’s research found awareness of short-term insurance remains relatively low.
Nearly two in five (39 per cent) parents surveyed did not know it was possible to insure a car for just one hour.
The cost of supporting children who borrow the family car also differs considerably across the country.
Parents surveyed in Northern Ireland reported the highest average additional annual cost at £706.71, followed by the East Midlands at £613.69 and London at £600.95.
Yorkshire and the Humber (£597.48), the West Midlands (£597.28) and North West (£587.66) also came in above the national average reported by parents surveyed. Regional figures are indicative, as sample sizes varied.
Emily Barnett, Insurance Expert at Compare the Market, said: “Parents play a huge role in helping young people get behind the wheel, whether that’s supporting learner drivers, lending the family car or making sure it’s available only when it’s needed.
“Every family’s circumstances are different, but if someone only needs to borrow a family vehicle occasionally, it’s worth understanding the different insurance options available. Temporary car insurance can be a useful option for those infrequent journeys, helping families insure occasional borrowing as and when it is needed.”
The findings are based on two surveys commissioned by Compare the Market. The first questioned 2,000 UK adults, including 725 parents with a child aged 17 or over. A second survey of 500 parents who had shared their car with a child or young adult explored how frequently cars were borrowed, the reasons for doing so, associated costs and awareness of temporary insurance.