Over 3 million drivers risk £300 fine and points by driving ‘free’ courtesy cars illegally
Last updated: 24/03/2026
Last updated: 24/03/2026
More than 3 million motorists* are at risk of fines and penalty points by unknowingly driving courtesy cars illegally, according to research from temporary insurance provider Tempcover.
A new study of over 2,000 drivers reveals that the courtesy car safety net many rely on while their vehicle is off the road often contains unforeseen gaps in coverage and availability. The research identifies a significant disconnect between what drivers expect and the reality of the UK’s courtesy car process - from cover that automatically ends the moment a car is stolen or written off to unexpected fees and lack of availability.
Specifically, the research reveals that three in five (58%) motorists who used a courtesy car in the past year used it to commute to work or drive to business meetings - trips typically excluded by standard courtesy insurance policies. As such, by using these vehicles for work-related travel, Tempcover analysis suggests 3.2 million motorists may be inadvertently driving without the correct insurance, risking a £300 fine and six penalty points.
The research also exposes the potential cost of a 'free' loaner. While these vehicles may be thought of as a complimentary benefit, one in six of those who’ve used a courtesy car (16%) report facing unexpected fees. These charges amount to an average fee of £155, with nearly one in ten (9%) of those affected facing bills exceeding £400.
Among the courtesy car users who paid unexpected fees, 20% were charged a cleaning fee, while a fifth of cases (21%) were billed simply because the garage had no free courtesy cars available.
For a third of motorists (32%), the issue wasn’t a fee but a lack of transport; they were left without a courtesy car as the garage ran out of replacement vehicles. This lack of transport meant two in five (42%) had work or social plans disrupted because they couldn’t access a vehicle.
Even for those fortunate enough to receive a courtesy car, it wasn’t without delays. A quarter (25%) waited two to six days to get back on the road, while one in ten (10%) faced waits ranging from a week to over a month.
The research reveals the ‘Courtesy Car Lottery’ is most severe in London, where drivers who’ve been provided a courtesy car are twice as likely to face unexpected fees (32%) compared to the national average. Motorists in the South West and North East also face the highest mobility gap, with 38% of drivers in these regions being left without any car due to garage shortages.
For many drivers, receiving a courtesy car was only the beginning of further frustration. Nearly half (43%) reported that their replacement vehicle didn't meet their specific needs; reasons cited include the car was too small (13%), the car was too big (6%), the car had the wrong transmission (7%), or was in poor condition(7%).
Furthermore, over half (53%) of drivers wrongly assume they are guaranteed a courtesy car if their vehicle is stolen or written off. In reality, most standard courtesy car policies only provide a replacement for repairs, meaning the cover typically vanishes when a car is declared a 'total loss’ or is stolen and never recovered.
Worryingly, 37% of motorists didn’t check or can’t remember if they checked their level of insurance cover before driving away in a courtesy car. When those that didn’t check were asked why, these drivers admitted that it ‘didn’t even cross their mind’ (37%), they trusted the garage to handle legalities on their end (36%), or they assumed their personal insurance carried over to the courtesy car (29%). In fact, many standard policies do not extend comprehensive cover to driving other cars, leaving motorists personally liable for thousands in damages in the event of an accident.
The data also revealed there’s a risk of driving illegally post-repair, with a fifth of drivers (23%) admitting to keeping their courtesy vehicle past the agreed deadline. This may leave motorists driving uninsured, as cover may expire the moment the authorised repair is complete.
Jake Lambert, temporary insurance expert at Tempcover, says: “Whether it is the motorists unknowingly risking penalties by commuting to the office in a courtesy car, or the many others who find their loaner vehicle simply isn't fit for purpose, there is a clear need for more clarity.
For those who need a reliable alternative at short notice, temporary insurance offers a way to take more control. By borrowing a car from a friend or family member and using our short-term, fully comprehensive cover - available from as little as one hour up to 28 days - drivers can ensure they have the exact level of protection they need.
Crucially, if your main policy does not cover business use and you need to make a work-related trip, a temporary policy can also provide that specific cover. By being aware of these hidden gaps and knowing that there are flexible alternatives like temporary insurance available, drivers can take control while they wait for their replacement.”
The 3.2 Million Figure: Calculated by applying the survey finding that 13% of UK motorists have used a courtesy car in the past year. There are 42,854,992 full UK driving license holders (DVLA Nov 2025 data), so 13% of which is 5,571,148. 58% of those who drove a courtesy car in the last year said they used the vehicle for business meetings or commuting. So this totals 3,231,266 motorists at risk of driving without the correct level of cover.
Mortar Research: Survey of 2,016 UK motorists commissioned by Tempcover in February 2026.
