If you only need car insurance for a brief period, such as a month, a week, or even one day, there aren't any car insurers that specifically offer this kind of product. However, you can still get cover!
Here's how: 1. Take out a regular policy and pay monthly - cancel it when you don't need it anymore. 2. Go for a pay-as-you-drive policy, where you only pay for the kilometres you drive each year
Want short term car insurance? Start comparing some options
Only want car insurance for a short time period? We've got your solve.
If you're after car insurance for a short-period of time for whatever reason, this is probably the simplest way to get cover for your vehicle.
Take out a car insurance policy the same way you usually would.
Pay monthly as opposed to yearly. Bonus points if you opt for an insurer that doesn't charge you extra for paying monthly (you can find them in our table above).
When you're done with needing cover, cancel your policy!
Whilst you'll need to hack a small cancellation fee, it's probably better than paying a year's worth of premiums.
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:
If you've paid your premiums in advance, QBE will refund you the proportion of the premium for the remaining period of insurance, less any administration fees
RACQ will refund your remaining premiums if you cancel your policy prematurely. If the refunded premiums are less than $100, a fee of $10 will be deducted. If the refunded premiums are more than $100, a cancellation fee of 10% of the refunded amount will apply, up to a maximum of $80
Can you get car insurance in Australia for under 30 days?
There are policies that provide immediate cover if you need to drive a different vehicle for a short period of time. Here are some options:
1 day: If you're taking a day trip or are moving house and simply need car insurance for one day or a couple of weeks, it might actually be better for you to just rent a car or get a GoGet.
1 week: Some insurers will allow you to pay fortnightly. If you're driving for a week, it might be best to just pay fortnightly and then cancel your policy when you don't need it anymore.
Monthly: You could choose whatever policy takes your fancy, choose to pay monthly, and then cancel it when you don't need it anymore. If you're not driving a lot in this month, you could also look into pay-as-you-drive cover which only requires you to pay for the kilometres you plan on driving over a certain period.
Not quite the right fit? Here are some other short-term options.
So you already know that Australian car insurers don't offer temporary car insurance. Instead, you will have to choose one of the four following options to get the cover you need:
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 fortnightly or monthly
Another option is to select a standard car insurance policy of your choice and pay your premiums monthly or fortnightly. 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 fortnightly or monthly as you go rather than annually in advance. When you no longer need cover, cancel the policy.
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
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
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
Short-term car insurance is available to suit the needs of a wide range of Australian drivers. If you hold a valid licence that allows you to drive in Australia, you’ll generally be able to qualify for cover.
However, special eligibility requirements may apply depending on the temporary car insurance option you choose. For example, if a friend or relative is going to add you to their policy as a listed driver, you’ll need to make sure that you list the correct person as the main driver of the vehicle.
In addition, some insurers may refuse cover to drivers of specific ages, such as those under 18 years of age or senior motorists. Check with your insurer for full details of any eligibility requirements that apply.
Can you get six-month car insurance in Australia?
It is not possible to find dedicated comprehensive or third-party property car insurance policies that cover you for a set period of six months. Instead, the most cost-effective way to get the cover you need can be to buy a 12-month policy and then simply cancel it after six months.
However, make sure you look closely at the early cancellation fees and terms set out in the policy before deciding whether this option will save you money. Issues to be wary of include:
Cancellation fees. Some insurers charge a fee if you cancel your policy after six months. This can be up to around $40 depending on the insurer.
Premium refunds. If you’re paying in advance for 12 months, many insurers will refund your unused premium.
Paying month to month. If you’re paying your premiums on a month-to-month basis anyway, you shouldn’t need to worry about refunds.
Are there any short-term car insurance exclusions?
The general exclusions that apply to ordinary car insurance policies also apply to short-term car insurance. For example, you will not be covered if:
You were driving while under the influence of alcohol or drugs
Your vehicle was being used in an unsafe or unroadworthy condition
Your vehicle was being driven while overloaded with passengers or goods
Your claim is for tyre damage caused by road punctures, cuts or bursts
Your claim is for repairs to old damage
Your claim is caused by mechanical, structural or electrical failures
Your claim is for intentional loss or damage caused by you or someone acting on your behalf
Your car is legally seized or repossessed
Your claim arises due to your involvement in criminal or illegal activity
You fail to properly secure your car after it breaks down, is involved in an accident or is stolen and recovered
You can find out more about what car insurance won’t cover in our guide to car insurance exclusions.
How to choose short-term car insurance
Which short-term car insurance option is right for you? To work this out you’ll need to answer a few simple questions:
Why do you need cover?
How long do you need cover for?
What type of car insurance do you want?
Once you know which of the four options is the best fit for you, it’s time to start comparing quotes and policy features across multiple insurers.
FAQs about temporary car insurance
A. While there are no special policies that specifically cover you for a period of one month, you can find suitable cover for this length of time. Check out the options listed above to see which one is right for you.
A. Once again, there are no products specifically designed to cover you for only one week. However, check the list of short-term car insurance options higher up this page to find suitable cover.
A. This typically can be done online, over the phone or even by email. Contact your insurer for more details.
A. Yes, drivers under the age of 25 can access short-term car insurance in Australia. However, make sure you’re aware that car insurance for under 25s costs more than for older drivers.
A. Short-term insurance provides cover straight away, allowing you to hit the road with confidence.
A. Short-term car insurance is insurance that covers your vehicle for a period shorter than the usual insurance term of 12 months.
A. If you no longer need cover, you may need to pay a cancellation fee to your insurer but the good news is that many insurers will refund your unused premium. If you want to insure your new vehicle, you may be able to update your existing policy and pay any additional premium, or you may need to purchase a new policy altogether.
Alexandra Koster is Finder's Publisher for car, home and pet insurance. Her hobbies include reading product disclosure statements and deciphering complicated insurance lingo to help people save on their insurance so that they can spend their money on better things – like dogs. She has a Bachelor of Arts in Film and Cultural Studies from the University of Sydney.
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