Temporary car insurance 2026: Usage, Cost, and Market Growth

Temporary car insurance gives drivers flexible cover with no need to buy a 12-month policy.

There are lots of benefits to using this type of short-term insurance. It makes it easy to borrow or lend a car, can be used on road-trips if you want to share the driving, and is useful for learners looking to practice outside their lessons. It’s a great way to make sure you are protected, but don’t have to pay for more time than you want.

We’ve taken a look at our data to understand more about temporary insurance quotes and how drivers are using temporary cover today.

What are drivers using temporary insurance for?

We looked at RAC temporary car insurance quotes where the driver gave us a reason for cover. While some people might think this type of cover is for exceptional situations, it appears this is not true. It turns out, borrowing or lending a car was the most common use case.

Reasons for getting a temporary car insurance quote:

Nearly one in three temporary car insurance quotes (30.9%) were for borrowing or lending a vehicle. Almost one in five (19.7%) were linked to learner drivers.

Test-driving or collecting a new vehicle was the third most common reason, making up 10.5% of quotes.

Together, these three reasons covered more than six in 10 temporary car insurance quote requests.¹

Less common reasons were cover for a holiday or road trip (6.6%), while a car is in the garage for a repair or MOT (5.8%) and filling a gap in cover (5.5%). This suggests that this type of cover is much more relevant to people’s everyday lives than you might first think.

[Source: RAC Data valid as of 08/26].

What type of vehicle are drivers getting a temporary car insurance quote for?

Most temporary insurance quotes are for cars. That’s 90.6% of all quote requests for the period of time we looked at. Quotes for vans and motorhomes were less than 10% of our data set.

Vehicle type

"Temporary insurance is often associated with emergencies or occasional driving needs. But our data suggests borrowing a car from friends or family and helping learner drivers gain experience are among the most common reasons drivers seek short-term cover." - Clare James, RAC Insurance Expert.

[Source: RAC Data valid as of 08/26].

How old are drivers who use temporary car insurance?

Temporary car insurance is most popular with younger drivers. Particularly those without regular access to a car.

[Source: RAC Data valid as of 08/26].

How much is temporary car insurance in the UK?

RAC data shows the average price for one day of temporary cover was £23.99 between 1 January and 30 June 2026^.

Prices vary depending on how long you need cover.

^10% of customers purchasing an RAC Temporary Car Insurance policy direct from dayinsure.com between 01/01/26 and 30/06/26, paid the above prices for the corresponding durations. This is based on new customer's base premium when buying cover and excludes optional extras. Premium depends on individual circumstances and the level of cover chosen.

Temporary car insurance average policy duration

Most temporary insurance policies last only a few days.

The average policy length is 3.98 days.

Average policy length (days) per UK nation:

[Source: RAC Data valid as of 08/26].

Can I get temporary car insurance?

Many drivers can get temporary car insurance with the RAC. It offers comprehensive cover from one hour up to 30 days.

Drivers often use it to borrow a car, test-drive a vehicle or share driving duties.

Can you tax a car that has temporary car insurance?

Yes. You can tax a car with temporary insurance. The DVLA checks the Motor Insurance Database (MID) to confirm that the vehicle is insured.

If the vehicle is not registered as off the road (SORN), it must be taxed and insured. It must also be roadworthy and have a valid MOT where required.

To tax it online, you'll need your V5C logbook and 12-digit reference number.

What are the trends for temporary car insurance?

"Demand for temporary insurance rises and falls during the year. We find more policies are taken out during university holidays, school breaks and seasonal periods such as Christmas, Easter and summer.

This is usually when younger drivers are more likely to borrow a parent's car or share vehicles with family and friends.

Demand also rises around bank holidays and long weekends, when drivers need cover for trips and one-off journeys.

Drivers also use temporary insurance when their car is being repaired, when collecting a new vehicle or when helping friends and family.” – Clare James, RAC Insurance Expert, 08/26.

Is temporary car insurance suitable for business use?

"It can also suit drivers who only need business cover occasionally. This means they only pay for cover when they need it. Our temporary car insurance includes business use as standard. So drivers can travel between work locations when needed without committing to an annual policy." – Clare James, RAC Insurance Expert, 08/26.

Who can’t get temporary car insurance?

“RAC temporary car insurance can offer a flexible solution for a wide range of drivers. To qualify, you'll need a valid full GB driving licence, held for at least six months, or just three months if you're aged over 25.

If you're still learning to drive and haven't yet passed your test, learner driver insurance may be a better option. It lets you practise in a parent, family member or friend's car without taking out an annual policy.” – Clare James, RAC Insurance Expert, 08/26.