Cover note insurance provides temporary protection for your car. It gives you time to choose a policy and requires no upfront payment. This article will guide you through what you need to know about cover note insurance.
Insurance Cover Note
A cover note is a temporary document issued by an insurance company to provide proof of insurance coverage if the policy documents are not immediately available. A cover note features the name of the insured, the insurer, the coverage, and what the insurance will cover.
While insurance companies issue a cover note to an individual. The insurer may continue to evaluate the risks associated with insuring the holder of the cover note. Hence, the cover note will continue to serve as proof of coverage for the insured until the insurer issues the policy documents and certificate of insurance.
Moreover, the cover note insurance provides the same level of coverage as the full insurance policy. Although insurers may place some restrictions while they make any final determinations on the risks associated with the insurance policy. A Cover Note is valid for a period of 60 days from the date of its issue. Typically, insurance companies deliver the original certificate to you within two weeks of the start of the coverage.
Car Insurance Cover Note
Car Insurance cover notes were originally introduced by car insurance companies to provide temporary or interim cover for car owners until they purchase a formal policy. When you get a car insurance policy, it takes a few days to get the original policy document to you because administrative activities like printing and posting the originals can take time. So what you do is to call the insurance company and remind them that you are still waiting on them to send you the original insurance certificate. You have to do this while your Cover Note is still valid.
How Do I Get a Car Insurance Cover Note ?
Cover notes are essential insurance for drivers who just purchased a new car and are deliberating between different insurance providers.
If you are looking for coverage in the interim before you lock in a policy, you could make use of a provider’s cooling-off period. To do this, you may decide what type of policy you want (comprehensive, third-party, or third-party fire and theft), look for a policy with a suitable cooling-off period, and apply.
If they accept you, this covers you from the commencement date that appears on your certificate of insurance. However, you can cancel the policy if you change your mind within the cooling-off period. Remember to read the PDS to understand the terms and conditions of the cooling-off period, including the steps to cancel if you choose to. Of course, if you decide you’re happy with the policy and the total costs, you may decide to remain with the provider for the entirety of the policy term.
Insurance companies may allow someone who has recently purchased an insurance policy (but does not yet have a formal policy) to cancel the purchase. This allows someone who only holds a cover note to receive a refund, provided that they have not made any claims during the cancellation period.
What Should I Do When I Get a Cover Note?
When you get a cover note for your car, you need to verify the following details:
- The make and registration number of the vehicle
- Year of manufacture
- Engine and chassis number
- Cubic capacity of your vehicle
- Seating capacity in your vehicle
- Insured declared value (IDV) of your car
- IDV of the accessories in your car (car stereo, speakers, CNG kit, etc.).
What Information Are In A Car Insurance Cover Note?
The information in a car insurance cover note includes:
- The name of the insured driver and their address
- The vehicle’s make and model, including registration
- The type of cover (e.g., social use)
- The level of cover (e.g., comprehensive)
- The expiration date of the cover
- Policy numbers and any other special conditions or terms and conditions your policy may have.
When you receive your temporary insurance cover note from your insurer, you need to check the information in their list to know if they are all correct. If not, you may not be eligible to make a claim and your insurance might be invalid. If something is incorrect, you should contact your insurance company immediately.
Temporary Cover Note Insurance
Temporary cover note insurance or short-term car insurance is a type of fully comprehensive cover for cars that can last from 1 hour to 28 days. It’s another option alongside one-day insurance and weekly insurance. Temporary car insurance allows you to pay only for the time you need; an hour, a week, or a month. If you paid for a day and still need more days. You can still top up instantly online to get up to 30 days or take temporary car insurance alongside an annual policy. This will not affect the vehicle owner’s No Claims Discount if you make a claim.
However, you can arrange your short-term cover in minutes. When you have any challenge like emergencies or other occasions where you may need to borrow a car but have no coverage by an existing car insurance policy. This can be of great help. Vehicles that are eligible for temporary car insurance vary from insurer to insurer, though most offer a range, including cars, bikes, and motorhomes. You’ll find varying limits to how valuable the vehicle can be, but if it’s not too far above £50,000.
However, most providers won’t give you temporary car insurance if you’re planning on transporting goods or passengers for a fee. To that end, some companies won’t cover larger vans or anything with more than 8 doors. Again, you’ll find that different insurers have different criteria, and some may allow limited commercial usage.
Who Needs Temporary Cover Note Insurance?
There are a number of times when short-term insurance might make more sense than a year-long premium. Below are those that need temporary cover note insurance.
#1. Students
If you have a student who’s home for the holidays or summer break, they will need coverage if they’re going to be driving. You may be able to add temporary coverage for them to your existing insurance policy.
#2. Family Members Using A Car
If a family member is borrowing a car for a day, Your existing insurance policy will cover them. But anything longer than that requires them to have coverage of their own. You may be able to add temporary insurance for the time they’re using the vehicle.
#3. Rental Cars
If you don’t currently have car insurance and don’t want to purchase the costly coverage offered by the rental company, you can decide to opt for a temporary car insurance policy.
If you’re renting for an extended period of time, short-term coverage may be a more affordable option to have peace of mind.
#4. International Insurance
If you’re an ex-pat or work abroad and are planning to drive, you’ll need temporary insurance coverage for that period. In most cases, your domestic car insurance policy won’t cover international driving.
#5. Car-Sharing Insurance / Borrowing A Car
When you don’t have a car, you will need to share a car with someone or a company. But since you don’t own the car, you don’t have a traditional insurance policy that will cover you in the event of an accident. Some car-share companies have vehicle coverage, but you may want to top up their limits with your own temporary policy.
Are You Eligible To Apply For Temporary Cover Note Insurance?
Different providers have different rules when it comes to eligibility for short-term car insurance. Things like age and the value of your car will be taken into account. Most insurers won’t insure younger drivers on temporary policies although some companies do provide cover for 17-year-olds and even learner drivers. Some insurers exclude cars over a certain value. However, to get temporary car cover, both you and the car must meet the following criteria.
The Driver Must,
- Be aged between 18 and 75 (the minimum age may vary depending on individual circumstances)
- Hold a current, valid, full UK driving license, for at least 6 months (reduced to 3 months if aged over 25)
- Have a current permanent address as it is in the application, (please note you may be asked to provide proof of residence in the event of a claim)
- not have more than 1 fault claim in the last 12 months
- Have not more than 9 penalty points and no disqualifications in the last 18 months
- Have no motoring offense in the last 3 years with the Conviction Offence Code prefixes DR, CD, DD, UT or DG and CU80
- Do not have any unspent criminal convictions (other than motor offenses)
- Have never been refused insurance or had a policy canceled
- Have permission from the owner to drive the vehicle and must agree to insure it as you have responsibility for loss or damage
The Car Must,
- Undergo registration with Great Britain, Northern Ireland, or the Isle of Man
- Have a current market value of less than £75,000
- Have no more than 8 seats (including the driver’s seat)
- Be a Hired or Rental vehicle or leased under an agreement of 12 months or less duration
- Not be a seized vehicle or in a police compound
- The vehicle has no engine modifications, body kits, or alloy wheels unless fitted at manufacture or were manufacturer optional extras – unless specifically carried out for a disabled driver or passenger
- Not take importations from another country through channels other than the maker’s official distribution system
- Not have a type of Heavy Goods Vehicle (HGV)
- Not be over 3.5 Tonnes Gross Vehicle Weight (GVW)
- Has an engine size of 3999cc or less
Temporary Car Insurance Covers
Below are what temporary car insurance covers
- Flexible duration: This covers from 1 hour to 30 full days. You can also add a breakdown or European cover if you need it.
- Loss, Theft, or Damage: Comprehensive cover is standard and if you make a claim, it won’t affect your “No Claims” discount on your main car policy
- Emergency Treatment: Cover for emergency medical expenses if you or your passengers are in an incident
- Legal Liability: Cover for up to £5,000,000 if someone’s injured or their property’s damaged
What’s Not Covered
- Tyres: Any punctures, cuts, or bursts – including those caused by braking
- Electrical breakdowns: That’s problems with wiring, electrical components or on-board computers
- Unnamed drivers: We’ll only cover drivers you’ve told us about
- Unattended/keys in ignition: Loss or damage if the vehicle was left unattended with the engine running or the keys in the ignition
- Wear and tear: Electrical and mechanical breakdown or gradual deterioration
- Loss of value following a repair:
- Confiscation, requisition, or destruction by or under order of any government, public or local authority
What is Covernote?
A cover note is a temporary document issued by an insurance company that provides proof of insurance coverage until a final insurance policy can be issued.
What Is a Double Insurance?
Double insurance arises when the same party is insured with two or more insurers in respect of the same interest on the same subject matter against the same risk and for the same period of time.
Do You Have to Pay for a Cover Note?
You don’t pay upfront costs for cover note insurance and it’s designed to give you time to weigh up your insurance options.
How Long Does an Insurance Cover Note Last?
Insurance cover can last between 15 to 30 days, depending on the insurer. If you cancel your policy within this time, you will receive a full refund.
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