Third party insurance is mandatory to drive a vehicle on public roads, but it is not always necessary to subscribe to it for an annual period.
In order to use any vehicle, it is indispensable that it has a third party liability insurance. The law provides for fines of up to 3,000 euros, and the penalties also apply if the offending vehicle remains parked on the public highway.
But there are circumstances in which it is not worthwhile to take out an annual policy, for example if the vehicle is to be sold or if it is a historic model that remains in storage and is only used occasionally .
And there is another recent factor that has encouraged the short term insurance formula: starting this year, vehicles that have been temporarily deregistered can only remain in that state for twelve months, which can no longer be extended indefinitely as before.
This new measure of the administration aims to put an end to the growing number of zombie vehicles (2.6 million), which remain in working order, but do not meet the legal requirements to circulate, such as having insurance and having passed the ITV.
How per diem insurance works
With temporary insurance it is possible to keep a vehicle in storage and occasionally reinstate it for use without the need to have it permanently insured. But this type of policy is also suitable for when, for example, you want to sell the car or to cover a certain period between the expiration of a policy and the entry into force of a new one.
Daily insurance is valid for any vehicle except buses, and its validity period can be between one and 28 days. The requirements to contract them are to be over 21 years of age and to have held a driver's license for 12 months or more.
As regards its characteristics, the temporary insurance works like the usual ones that are contracted from year to year. They not only cover the national territory, but are also valid in the countries of the European Union and their coverage is not limited to compulsory civil liability. In fact, it can be extended to voluntary, legal defense, health assistance and roadside assistance for the national territory.
In order to use any vehicle, it is indispensable that it has a third party liability insurance. The law provides for fines of up to 3,000 euros, and the penalties also apply if the offending vehicle remains parked on the public highway.
But there are circumstances in which it is not worthwhile to take out an annual policy, for example if the vehicle is to be sold or if it is a historic model that remains in storage and is only used occasionally .
And there is another recent factor that has encouraged the short term insurance formula: starting this year, vehicles that have been temporarily deregistered can only remain in that state for twelve months, which can no longer be extended indefinitely as before.
This new measure of the administration aims to put an end to the growing number of zombie vehicles (2.6 million), which remain in working order, but do not meet the legal requirements to circulate, such as having insurance and having passed the ITV.
And how are they hired?
In Grupo Galilea we offer the possibility of contracting your insurance for days 100% online and fast.
Make click here to calculate the price of your insurance per day
Once the vehicle and driver information has been filled in (and the amount paid), the insurance becomes effective 50 minutes after taking out the policy. At that moment, you will receive by e-mail the policy, the payment receipt and the green card to drive in other European countries.
Source: El País