Budget, a motor insurance brand, has introduced a new product, targeting the need for short-term motor insurance. Budget short-term insurance provides instant cover online and by phone, from as little as GBP6 per day.

Budget has claimed that short-term car insurance is ideal at the time of buying a car or van to drive away immediately; test-driving; lending a vehicle to overseas visitor; teaching someone to drive in your car.

Temporary cover also offers reassurance to the vehicle owner, as their no-claims bonus is not at risk. In the event of an accident, an accident involving a driver added temporarily to the owner’s policy could affect their no-claims discount. But if that driver took out a temporary policy, the owner’s no-claims discount would be unaffected.

Matthew Gledhill, managing director of Budget Insurance, said: Many people at various times have needed a short term policy, whether borrowing a friend’s van to move house, or test-driving a car. But traditionally this kind of cover has been difficult to find when you need it. Budget listens to its customers and as a result we’re making the process simple and effective, at a competitive price.