Can I take out one day insurance to release my impounded car?

Unfortunately impound car insurance cannot be obtained for one day, and you will have to take out either a 30 day policy or one for a full year. The advantage of short term, temporary seized car insurance is that your capital outlay is minimal and you only have to pay for one month, and won’t be hit by cancellation fees if you decide to lapse it. However if you decide on taking out an annual policy then you will not only have more cover but you will also be able to build up no claims bonus (NCB) which makes future insurance cheaper.