Laid up car insurance is designed to protect cars that are unused or in the process of being repaired or restored, and aren't currently on the road. It means your premium is cheaper, but you're still protected for things like fire, theft, or damage during transit.
What is laid up car insurance?
Laid up car insurance is designed to cover cars which are off the road, because they're currently being repaired or restored. It's a popular type of cover for car enthusiasts, who may be tinkering with a vintage vehicle in their spare time.
Typically, the car must be on private property or located at a workshop of some sort, to be eligible for laid up cover. It might also cover damage in transit, if you're moving your car from one location to another.
Who offers unused car insurance?
Laid up car insurance isn't a particularly common type of insurance, but there a few policies available in Australia, including:
Brand
Info
Your car won't be covered if it's in use.
Your car must be located at your address, car centre, or a professional garage or workshop.
Your car won't be covered while it's being driven, other than for loading and unloading.
For vehicles that are not registered for use on the road or are currently undergoing restoration.
Your car will be covered while it's being loaded and unloaded for transportation.
Your car won't be covered while it's being driven, other than for loading and unloading.
Your car will be covered while it's being loaded and unloaded for transportation, as well as during transit.
Your car won't be covered if it's being driven.
Your car must be kept in your home or locked garage, at a workshop for maintenance or repair, on display at a car event, at an auction event or at a club event.
Your car will also be covered while it's being loaded and unloaded for transport, and during transit, to one of the above locations
Your car won't be covered if it's in use.
The car must be located within a private residence, at a Shannons auction event, or at a workshop for maintenance or repair.
Your car will also be covered when it's being loaded or unloaded for transport, and during transit, to any of the above locations.
Pros and cons of laid up cover
Laid up cover is designed with car enthusiasts in mind, so it's a particularly good option for people who have a rare or expensive vintage vehicle, which is currently off the road.
However, laid up cover isn't ideal for everyone's situation. The table below summarises some of the key pros and cons, to help you make a more informed decision.
Pros
Cons
✅ Cheaper than comprehensive insurance for rare or collectable vehicles.
❌ May be more expensive than other policies, if your car isn't rare or collectable.
✅ Covers vehicles during transport and while on display at motoring events
❌ Doesn't cover your car for any driving at all
✅ Covers stolen parts, vandalism and damage at a restoration shop
❌ Must be kept on private property or a locked garage to be covered
What other options are there?
Laid up car insurance isn't right for everyone. For example, if you want the option of driving your car from time to time, or your car can't be kept in a locked garage, there might be a different type of insurance which is better suited to your situation.
Pay as you drive. Some insurers have specific policies which are aimed at drivers that rarely drive, or only drive short distances. Instead of paying for unlimited mileage, you estimate your average annual kilometres, and your premium is calculated based on that figure.
The less the drive, the less you pay. If your driving habits change, you just let your insurer know, and your premiums will be adjusted. Compare pay as you drive policies and you could get a cheaper premium, while keeping comprehensive insurance.
Policies that reward low-milage. Some insurers reward drivers for low-usage, even though they don't have seperate pay-as-you-drive policies. During the quote process, you let the insurer know your estimated annual mileage, and your premium is calculated accordingly.
Reduce your cover. If your car is off the road, you might want to consider switching to third party fire and theft insurance. You'll still be covered if your car is stolen or damaged in a fire, but not for any other damage to your vehicle.
Which insurers offer pay as you drive car insurance?
1 - 6 of 6
Which insurers reward low mileage?
We requested multiple quotes from over 30 different car insurance brands in Australia. We used the same driver profile, but changed the estimated mileage. Here are some the brands that offered a reduced price for lower estimated mileage.
*Quotes accurate as of 23 April, 2020. Based on a driver profile of a 50-year-old woman, living in Sydney. Car details were for a 2015 Ford Fiesta, with an excess set as close to $800 as the insurer would allow.
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Nicola Middlemiss is a contributing writer at Finder, with a special interest in personal finance and insurance. Formerly a business and finance journalist, Nicola has written thousands of articles helping Australians better understand insurance and grow their personal wealth. She has contributed to a wide range of publications, including Domain, the Educator, Financy, Fundraising and Philanthropy, Insurance Business, MoneyMag, Mortgage Professional, Yahoo Finance, Your Investment Property, and Wealth Professional. Nicola has a Tier 1 General Insurance (General Advice) certification and a Bachelor's degree from the University of Leeds.
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