What Are Daily Insurances Like? Summer is here, vacations have arrived, people are heading to their second homes in the countryside, and it’s time to take out that buggy we keep for this time of year, that classic car we only show off in the summer, or that quad bike we enjoy in the mountains our way.
You probably already know this, but we want to remind you that any of these vehicles must have car insurance that guarantees, at the very least, the liability that the driver may incur if they have an accident in which a third party is physically injured or has property damage.
This leads to the question, do I need to maintain an annual insurance policy for a vehicle I only use for a month or two each year?
What are daily car insurances?
To provide the best possible answer to this situation, daily insurances arrived in the Spanish insurance market a few years ago. This insurance type was already known in other European countries but was not yet popular in Spain.
It allows us to insure leisure vehicles like the ones mentioned earlier, keep a car (or whichever vehicle it is) insured between the expiration of one policy and the start of a new one, or insure that historic vehicle that only leaves the garage occasionally for a special occasion.
Are they legal?
Yes, they are, and there are two requirements you must meet to purchase this type of insurance: the age requirement, which states that you must be at least 21 years old to contract this type of insurance, and the requirement of having had your driver’s license for at least one year.
However, these insurances are not available for buses or vehicles transporting hazardous materials, and you can purchase them for a minimum of one day and up to a maximum of 28 days.
Are there motorcycle insurances too?
Yes, this type of insurance is not limited to cars, so if you’re thinking of dusting off your two-wheeler for use during your vacation, insure your motorcycle and enjoy a few worry-free days with the wind in your face.
However, if you find yourself enjoying it and decide to use the motorcycle more frequently, consider comparing motorcycle insurance options and getting an annual policy, as it may be more cost-effective in the long run.
In fact, this daily insurance option also extends to industrial vehicles that you may need for specific transportation needs for one or two days or for motorhomes that you plan to use for a week or two.
If you need insurance with a bit more coverage, monthly insurance is the solution. However, be sure to do the math to see if purchasing a traditional annual policy would be more cost-effective depending on your needs. You can insure your vehicle for a minimum of one month and up to a maximum of seven months.
In this case, you’ll also need to have had your driver’s license for at least one year and be over 25 years old. If you reside in one of Spain’s autonomous cities, be sure to check as residents of Melilla or Ceuta may not be eligible to purchase this type of insurance.
What are the reasons to consider daily or monthly insurance?
One good reason to consider daily or monthly insurance is that until recently, you could indefinitely unregister a vehicle. However, the rules have changed, and now the maximum duration for temporary de-registration is one year.
This change aims to reduce the number of “zombie” vehicles, those that are operational but lack the legally required qualifications for road use, such as a valid inspection or insurance.
Another scenario where daily or monthly insurance can be useful is when you need to take a vehicle to the inspection station (ITV), but you don’t plan to use it for an extended period. You can purchase insurance to cover that specific day.
Additionally, if you’re selling a vehicle and need to transport it to the buyer or showcase it, you can buy insurance to cover those days of use.
The coverage offered is quite similar to what you’d find in a standard third-party insurance policy. You’ll comply with legal requirements by subscribing to liability insurance, and you can add other coverages such as voluntary liability, driver accident insurance, legal defense and damage claims insurance, or roadside assistance.
However, please note that roadside assistance coverage typically does not extend to foreign countries, so it’s essential to compare different coverage options.
For some vehicle owners, the lack of coverage comparable to comprehensive insurance is a disadvantage when considering daily or monthly insurance. Nevertheless, there is a demand for these types of policies due to their flexibility and cost-effectiveness.
You can choose to purchase this insurance for a day, weeks, or even months, be it for a whole month, three months, or six months. The cost is another advantage, as sporadic purchases will generally be more affordable than an annual insurance policy.