Short term car insurance Australia

Choose from a range of temporary car insurance options.

Gary Ross Hunter's headshot
James Martin's headshot

By

Gary Ross Hunter

&

James Martin

Updated

Fact checked
4.7 based on 829 reviews

Key takeaways

  • Temporary cover is possible by paying monthly then cancelling, though fees often apply, typically $30-$80.
  • Utilise cooling-off periods for short-term cover; cancel before expiry without claims for a full refund.
  • For alternative temporary cover, add a driver to an existing policy or choose pay-as-you-drive insurance.
If you only need car insurance for a month, a week, or just one day, there are plenty of options. Most car insurers will allow you to purchase car insurance and pay monthly or annually. Typically, if you pay annually and cancel before the 12 months is up, you will be refunded the unused portion of the premium.

If this still doesn't sound like the right fit for you, there are a few options to make sure you're covered and to keep costs down.

  • Hire a rental car. You can opt for additional insurance or your credit card may include cover.
  • Add a driver to an existing policy. If you're borrowing a car, consider getting added as a listed driver.
  • Go for a pay-as-you-drive policy. You'll only pay for the kilometres you drive each year.
  • Take out a regular policy. Choose to pay monthly and cancel when you don't need it anymore.

Temporary car insurance Australia compared

Rent a car

This option may be more cost-effective than you think. Many credit cards will let you pay for rental cars with reward points, and there are many car rental discounts available, such as free upgrades, free days at no extra cost and straightforward price reductions. Some credit cards also offer complimentary rental car insurance cover, or you can purchase the cover you need from the rental company.

  • How it works: Rent a car for the period required.
  • Who it could be suitable for: People who are moving house and may require a specialist vehicle such as a ute or a van.
Pros
  • Great for anyone who needs a very short-term solution
  • You are able to choose a vehicle to suit your needs
  • There are many discounts and savings available
  • Some credit cards offer complimentary car hire insurance
  • You can purchase cover from the rental company to cover the vehicle during the rental period
Cons
  • Insurance from rental companies can be expensive
  • Is only suitable for very short-term needs

Compare some car hire options here

Add a driver to an existing policy

If you're borrowing a relative or friend's car for a temporary period, you could ask them if they would consider adding you to their car insurance policy as a listed driver.

  • How it works: A temporary driver is added to the car owner's existing car insurance policy for a limited period.
  • Who it could be suitable for: People who are borrowing someone else's vehicle for a short period, for example if you're home from uni for the summer and driving your parents' car.
Pros
  • No need to take out a separate policy
  • Simple and convenient option
  • Access all the benefits of a regular car insurance policy
Cons
  • Can significantly increase the cost of cover
  • Make sure to avoid the illegal practice of "fronting", which is where you wrongfully list someone else as the main driver in return for cheaper premiums

Pay-as-you-drive policy

This type of policy lets you only pay for the distance you drive, while still extending comprehensive car insurance benefits for an ongoing period. You might think of it as a temporary car insurance that works based on distance driven, instead of for a period of time.

  • How it works: Choose an insurer that calculates your premium based on the distance you drive.
  • Who it could be suitable for: If you need temporary car insurance in Australia and have a rough idea of how far you will be driving.
Pros
  • Enjoy all the benefits of comprehensive car insurance
  • The less you drive, the less you pay for cover
  • Full range of optional extras available
Cons
  • You need to have a rough idea of how far you'll be driving all up, and not just how long you need the car for
  • An additional excess will apply to claims if you have exceeded your nominated distance
  • A "price floor" will typically apply, limiting your savings if you're only using the car in the very short term
  • Generally only available with comprehensive car insurance policies

Pay premiums monthly

Another option is to select a standard car insurance policy of your choice and pay your premiums monthly. This can be a fast and effective way of finding the right type of cover for your needs and accessing the full range of car insurance benefits. Once you no longer need cover, simply cancel the policy.

  • How it works: Pick any car insurance policy you want that allows you to pay your premiums monthly rather than annually. Keep in mind, some providers may apply an additional fee to pay monthly and may also charge a cancellation fee.
  • Who it could be suitable for: Anyone who needs short-term car insurance in Australia and wants the freedom to pick the policy of their choice.
Pros
  • Choose from an extensive range of policies
  • Tailor cover to suit your needs
  • Choose from comprehensive, third party fire and theft, and third party property damage policies
  • Only pay for the cover you will use
Cons
  • Cancellation fees apply
  • You will need to pay special attention to the policy terms and conditions to ensure this is a viable choice

Car insurance cover notes

Cover notes are no longer available in Australia. They used to be a temporary form of insurance that would let you have insurance for 14 days or so without making you pay for it unless you had to make a claim. It was handy in a range of scenarios but mostly for those who were picking up a new car and hadn't thought about insurance yet. It was like placeholder insurance and drivers would typically take out a proper car insurance policy once the cover note ran out.

The good news is, there's an alternative. The bad news is, it's not free. However, there are cheaper ways to go about it.

Alternatives to cover notes

There's really only one main alternative to getting a cover note and that's taking advantage of cooling off periods.

Every new car insurance policy has a cooling off period where you can get the full cost of the premium refunded as long as you haven't made a claim.

This is essentially the same as a cover note, except there are upfront costs. If the insurer offers monthly repayments then you only have to part with the first month's worth of cash and then you can cancel and get it all back.

It functions the same as a cover note:

  • You get temporary car insurance cover
  • You end up paying nothing as long as you don't make a claim and remember to cancel the policy before the cooling off period ends

Cancellation fees by car insurance brands

How much will your insurer charge in cancellation fees if you cancel your car insurance early? Check the table below for more information:

BrandCancellation feeMore info
There is no cancellation fee but any prorated amount to pay on the policy should be settled.
If you cancel the policy, you may receive a refund of the unused portion of the premiums, minus reasonable administration fees.
Cancellation fee of $40.
CGU
No cancellation fee. If you cancel your policy before it ends, CGU will refund a portion of the unused premiums.
More info
Cancellation fee is specified in the Certificate of Insurance.
No cancellation fee.
No cancellation fee.
Cancellation fee of $40.
If you've paid your premiums in advance, QBE will refund you the proportion of the premiums for the remaining period of insurance, less any administration fees.
You can cancel at any time, there's no additional cancellation fee.
Cancellation fee is specified in the Certificate of Insurance.
Cancellation fee of $30, inclusive of GST.

These cancellation fees were fact checked in April 2026.

How to choose short-term car insurance

Peta Taylor's headshot

"You may like to look at insurers who offer the option to pay in monthly instalments. It's also wise to check how the insurer treats early cancellations to avoid any surprise fees. In our research, we've found these fees are typically between $30-$80 with some insurers not charging a cancellation fee at all. Knowing these charges in advance can help you budget and select the best fit for your short term car insurance."

Peta Taylor
Associate publisher at Finder
Gary Ross Hunter's headshot

"There's no specific short term car insurance product. Thankfully though, a few insurers have made it easier to get temporary cover. For example, ROLLiN' lets you pay monthly and there's no exit fee."

Gary Ross Hunter
Insurance and innovations editor at Finder

FAQs about temporary car insurance

Sources

Gary Ross Hunter's headshot
Journalist
Add to Preferred Sources

Gary Ross Hunter has over 6 years of expertise writing about insurance, including life, health, home, and car insurance. Having reviewed hundreds of product disclosure statements and published over 800 articles, he loves simplifying complex insurance topics for everyday readers. Gary has contributed to major outlets like Yahoo Finance, The Sydney Morning Herald, and news.com.au, and holds a Bachelor of Arts (Honours) in English Literature from the University of Glasgow, along with a Tier 2 General Advice certification, ensuring his work adheres to ASIC’s RG146 standards. See full bio

Gary Ross's expertise
Gary Ross has written 529 Finder guides across topics including:
  • Health, home, life, car, pet and travel insurance
  • Managing the cost of living
James Martin's headshot
Co-written by

Journalist

James Martin was the insurance editor at Finder. He has written on a range of insurance and finance topics for over 7 years. James often shares his insurance expertise as a media spokesperson and has appeared on Prime 7 News, Insurance News, 7NEWS and The Guardian. An experienced journalist, James' work has featured in publications including The Irish Times, Companies100 and In Business. He holds a Tier 1 General Insurance (General Advice) certification and a Tier 1 Generic Knowledge certification, both of which meet the requirements of ASIC Regulatory Guide 146 (RG146). See full bio

James's expertise
James has written 167 Finder guides across topics including:
  • Car, home, life, health, travel and pet insurance
  • Managing the cost of living
  • Money-saving tips
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4 Responses

    Arthur's avatar
    ArthurNovember 29, 2023

    Which insurance should I choose if I am not a Australian resident and just hold a working holiday visa?

      Peta Taylor's headshotFinder
      PetaDecember 5, 2023Finder

      Hi Arthur,
      This really depends on your personal circumstances so I’m limited in what I can suggest here. Being on a working holiday visa is unlikely to affect your ability to get insurance so it’s best to consider how long you need cover for and what kind of cover you’re after then go from there.
      Hope this helps.

    Hyemi's avatar
    HyemiSeptember 27, 2021

    Hi,

    I have read all the information already on the website with regards to short-term insurance and they have given me some insights already – thank you for that information!

    I would like to get some things clarified that are relevant to my situation and hope you could help me.

    I have my work travel planned next week and seeking available options for my company to consider getting my personal vehicle insured for 2 weeks only. The additional driver will be my colleague and we will use my vehicle as a ‘work car’ for that period.

    My car is already insured of course, but it is company travel so I wanted to make it as clear as possible who is paying for what and having that short period insurance on top of my personal insurance.

    Is it something that would work?

      James Martin's headshotFinder
      JamesOctober 6, 2021Finder

      Hi Hyemi,

      That might work. The first thing you can do is ask your insurer if they offer extra cover that you can simply pay for that would be just valid within your business travel. If they can’t offer that type of policy you need, you can ask for advice.

      Aside from that, you can also try to get in touch with commercial and business car insurance providers (https://www.finder.com.au/car-insurance/commercial-car-insurance). They may be able to give you limited cover for your trip.

      Be sure to read through the terms and conditions of your chosen policy to be sure that you have chosen the right one for you.

      Regards,
      James

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