Short term car insurance Australia

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.

Compare short term car insurance

1 - 10 of 39

Name	Product	Roadside assistance	Accidental damage	Storm	Choice of repairer	Agreed or Market Value
Youi Comprehensive Finder Award					Optional	Agreed or Market	Finder's summary: The 2023 winner of our Best Features Car Insurance award. Plus, it's one of the only insurers to automatically include roadside assistance. Youi doesn’t offer a specific low mileage option, but its pricing is competitive. Who it might be good for: Those who want good customer service with lots of inclusions.	Get QuoteView details Compare	loading Fetching your data...
Budget Direct Comprehensive Finder Award		Optional			Optional	Agreed or Market	Finder's summary: The 2023 winner of our Best Value Car Insurance award. It's cheaper than most, plus you can lower costs by adding age restrictions. ⭐ Current offer: 15% off your first year's premium when you take out a policy online. T&Cs apply. Who it might be good for: Anyone who wants a good value policy. By driving less than 10,000 km annually, you could make further savings on your insurance.	Get QuoteView details Compare	loading Fetching your data...
Australia Post Comprehensive					Optional	Agreed or Market	Finder's summary: Covers a little more than other insurers. You don’t need to pay an excess for windscreen repairs and cover applies to anyone who uses your car. ⭐ Current offer: Get $100 off your first year's premium when you buy online. T&Cs apply. Who it might be good for: Multiple people using one car. If you’re keen to save while paying monthly, Australia Post’s $100 discount does apply – which is not not the case for some other insurer sign-up deals.	Get QuoteView details Compare	loading Fetching your data...
Qantas Comprehensive		Optional			Optional	Agreed or Market	Finder's summary: You need car insurance so why not get one that lets you earn Qantas Points? It's good value too (it's underwritten by the same insurer as Budget Direct). ⭐ Current offer: Earn up to 30,000 Qantas Points with every car insured by 30 September. Plus save 15% on your 1st year’s premium when you purchase online. T&Cs apply. Who it might be good for: People who want more bang for their buck with Qantas Points.	Get QuoteView details Compare	loading Fetching your data...
ROLLiN' Comprehensive						Agreed	Finder's summary: One of the most cost-effective insurers for under 25s, according to Finder research, with no aged-based excess. Who it might be good for: Young drivers looking to keep costs down and anyone who’d like to get more flexibility from their car insurance.	Get QuoteView details Compare	loading Fetching your data...
QBE Comprehensive Green Company					Optional	Agreed or Market	Finder's summary: Our Green Insurer for 3 years running and well rated for customer service and features. It offers up to $1,000 in cover for personal items in case they’re stolen from your vehicle. There’s no fixed way to save by opting to drive less month to month, unlike with ROLLiN’ and KOBA. ⭐ Current offer: Save $75 when you purchase a new comprehensive policy online. T&Cs apply. Who it might be good for: Those who want a trustworthy insurer and more cover than other brands. For example, QBE offers 3-year new car replacement, meaning they'll give you money for a new car for up to 3 years if yours is written off.	Get QuoteView details Compare	loading Fetching your data...
Kogan Comprehensive					Optional	Agreed or Market	Finder's summary: Kogan comes with the benefits that most comprehensive car insurance policies include. Plus, you'll also be entitled to some perks from its online store, such as a gift voucher or discount if you buy online. ⭐ Current offer: Get $115 off first year premiums for Kogan Comprehensive Car Insurance and $10 monthly credit (which applies 90 days after your policy kicks in). Who it might be good for: Kogan shoppers and those after a good range of policy options.	Get QuoteView details Compare	loading Fetching your data...
Youi Third Party Fire and Theft					Optional	Agreed or Market	Up to $20 million legal liability cover and 24/7 claims team.	Get QuoteView details Compare	loading Fetching your data...
Budget Direct Third Party Property, Fire and Theft Finder Award		Optional				Market	Save 15% on your first year's premium when you purchase a new policy online. T&Cs apply.	Get QuoteView details Compare	loading Fetching your data...
Youi Third Party Property Damage							⭐ Current offer: Covered up to $5,000 for accidental damage to your car caused by an uninsured third party. Who it might be good for: Drivers who want a reliable insurer. It was the 2022 Insurer of the Year for Customer Satisfaction.	Get QuoteView details Compare	loading Fetching your data...

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I took out a short-term car insurance policy with Youi, paying the fees monthly as we were in between selling our old car and getting a new one. I was still driving the old car while looking for a buyer and didn't want to commit to paying for an annual policy. I chose Youi as it offered one of the cheapest cancellation fees.

— Michelle Kwong, Publisher (Mobile & Broadband)

Temporary car insurance Australia compared

• Pay-as-you-drive policy
• Pay premiums monthly
• Add a driver to an existing policy
• Rent a car

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

Cover notes were definitely more convenient because there were no up front costs and getting your money refunded didn't require any reliance on memory. However, with cover notes no longer available, this is the next best option.

Here's a few tips to ensure your experience remains as close to getting a cover note as possible:

• Read the product disclosure statement (PDS) to find out how long the cooling off period is. Some are 14 days, some are 21. The PDS will include this information.
• Set a reminder to cancel the policy before the cooling off period is complete.
• Find a cheap policy. The cheaper your policy is, the cheaper your upfront cost will be.
• Find a policy that lets you pay monthly and opt for this. That way your upfront cost is only around $100 for example, rather than the full annual policy amount of say $1,200.

Keep in mind, you still want to pick a policy that you'd actually be happy with in the event you have to claim. It'd be so unlucky if you got into an accident, but remember, this is why you're looking for temporary insurance in the first place.

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:

The cancellation fees in this table are accurate as of February 2024.

How to choose short-term car insurance

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

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

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You can trust us. We say it like it is. We aren't owned by an insurer and our opinions are our own.

FAQs about temporary car insurance

• Is it possible to get one-month car insurance?

  Yes, you can organise a car insurance policy and choose to pay monthly. While this policy is designed to cover you for the full year, you can pay monthly and cancel when you no longer need it. Often, only a small cancellation fee will apply.

• Is it possible to get one-week car insurance?

  No, you'll need to pay for at least a month's worth of cover. There are no products specifically designed to cover you for only one week. It's likely you'd need to buy a normal policy, choose to pay monthly and cancel when you no longer need the policy. It's unlikely you'll be able to pay for the premium week-to-week.

• How do I add someone to an existing car insurance policy?

  This typically can be done online, over the phone or even by email. Contact your insurer for more details.

• How long until I can drive – will I be covered instantly?

  At the start of the car insurance quote, the insurer will typically ask what date you want your cover to start from. This means you'll know if you can get instant coverage before going ahead with the quote. If you're unsure of when your cover starts, it's best to contact your insurer to find out.

• What happens to my comprehensive car insurance policy if I sell my car?

  If you no longer need cover, you can cancel your policy. 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.

• Is short term car insurance expensive?

  Short term car insurance isn't necessarily more expensive than the cost of standard insurance but there may be some additional costs to consider:

  • A fee for paying per month rather than annually
  • A cancellation fee
  • Costs associated with adding an additional driver to a policy

• What's the cheapest short term car insurance?

  To save on costs you can consider purchasing a third-party property damage policy instead of a comprehensive policy. If third party just won't cut it, you can compare our choices for cheap car insurance.

• Do I need short term car insurance for a rental car?

  This depends on your rental agreement. You are likely to have a basic level of cover included with your rental and will be given the choice to increase the cover. If not, you may be eligible for insurance through your credit card or can purchase insurance separately. It's best to ask the company you're hiring the car from.

• What's the shortest time you can insure a car for?

  This will vary by insurer and is largely dependent on payment terms, cancellation fees and cooling off periods. If you need car insurance for a shorter period of time, like 14 days for example, then it's worth reading your insurer's cooling off period information to see if you'd be eligible for a full refund or partial refund if you were to cancel during this time.

Car insurance: Key terms to know

Here's a summary of common definitions you'll see with car insurance. Plus what they actually mean to help you while you're comparing.

• View glossary

  Policy term	Definition	Good to know
  Agreed value	You agree with an insurer on how much your car is covered for before you buy a policy.	There's more certainty on exactly how much you're insured for. But you're likely to pay more for the privilege. If car prices are rising, agreed value may still be short of the total cost of replacing your car.
  Baby capsule/child seat cover	An insurer replaces a damaged or stolen child seat or baby capsule in your car, resulting from the claimable event.	A payout limit, usually around $500, will be set by an insurer.
  Choice of repairer	You can choose your own licenced repairer after an accident.	In most cases, this benefit needs to be added to a comprehensive policy for a fee.
  Comprehensive car insurance	Wide-ranging insurance that covers damage to your own car as well as damage to other people, vehicles and property. Typically, it also covers costs caused by fire, storm and hail damage and replacement costs if your car is stolen.	Comprehensive insurance is the highest level of car insurance you can get in Australia.
  Cover for drivers under 25 years old	Whether you want insurance for an additional driver under the age of 25.	Be sure to shop around for cheaper deals available each year as you get older and gain more driving experience.
  Emergency accommodation	An insurer pays for the cost of your temporary accommodation if your car can't be driven safely and you can't be taken back to your home.	This benefit is often included in comprehensive policies. You may find it in some third party property, fire and theft policies.
  Emergency repairs	Protection if you need repairs to drive your car from the scene of an accident. For example, if your headlight is broken.	Insurers tend to cover emergency repairs in comprehensive policies with a payout limit of around $500.
  Emergency transport	An insurer pays for you and your passengers to be taken to the address where the car is normally kept at night if your car can't be driven safely.	This benefit is often included in comprehensive policies. You may find it in some third party property, fire and theft policies.
  Flexible excess options	This policy feature lets you adjust the excess on your car insurance policy. An excess is the amount you need to pay upfront to make a claim.	Policies tend to split their excesses as follows: a basic excess and an under-25 driver excess.
  Flood cover	A policy benefit that covers flood water damage.	Driving through flood water is likely to be seen as reckless behaviour by an insurer. It means they may refuse your claim.
  Hire car	Your insurer sorts out a temporary replacement car for you. Or, it pays costs for you to hire one. In this case, the insurer pays up to a daily hire amount such as $70 or $90 for up to 30 days.	A comprehensive policy usually includes car hire cover if your car is stolen. But you'll often pay extra if you want cover for an accident as well, regardless of whether it is your fault.
  Key replacement	A policy feature that pays costs for the replacement of your keys if they are lost or stolen. It also covers the recoding of locks on your car.	Cover for lost or stolen keys is included in some comprehensive policies. It usually pays up to $1,000.
  Legal liability	Cover in case you get sued as a result of injury or damage you cause to people or their property.	Most insurers pay up to $20 million in legal liability cover.
  Lifetime guarantee on authorised repairs	If your vehicle is damaged following an accident, a lifetime guarantee means you don't have to sort out the repairs yourself. Your insurer will make the arrangements for you.	You will most likely find it included in a comprehensive policy. It doesn't usually come as an optional add-on.
  Market value	Your insurer estimates what your car was worth right before a claim.	Premiums tend to be cheaper if your car is insured under its market value. In general, there's a higher chance you'll be underinsured.
  Multi-policy discount	A discount an insurer offers you if you hold at least one other policy with them.	Savings usually range from 5–25%. But it isn't always the case you'll get cheaper cover if you hold multiple policies with the same insurer.
  New car replacement	If your new car is written off within 2 years of you buying it, new car replacement can reimburse you with a new one.	Conditions and limits apply with new car replacement. For example, many insurers will only replace a new car if it has fewer than 40,000km on the clock.
  No claim discount	A discount you get on your car insurance premium for each year that you don't make a claim. It's also known as a no claim bonus.	Your discount can be as high as 15% if you have no at-fault claims for 5 years.
  Pay as you drive	An insurer calculates your premium based on the kilometres you actually drive.	If you're on the road a lot less than in previous years, you could access cheaper premiums with a pay-as-you-drive provider.
  Pay monthly at no extra cost	You can make payments each month, rather than annually, at no extra cost.	Only a few insurers in Australia won't charge you more by paying monthly. So, you can often save by paying your whole premium in one go (if you can afford it).
  Storms	Storm damage can include thunderstorms, lightning, hail, snow, rainwater runoff and storm surges.	In an insurer's eyes, rain showers on their own aren't usually classed as a storm.
  Third party car insurance	Entry-level insurance that covers damage you cause to someone else's vehicle or property.	This policy, often referred to as third party property damage (TPPD), won't cover your car; but it could stop you from facing large bills from other people.
  Third party, fire & theft	Mid-range cover that'll protect you financially for damage to another person's vehicle or property as well as damage to your car resulting from fire or theft.	Third party, fire & theft doesn't cover damage to your car in the event of an accident; for that, you'll need comprehensive car insurance.
  Towing	An insurer pays for your car to be taken to a mechanic – or a safe place nearby – after an accident (up to a certain distance).	Reasonable towing costs are covered by most comprehensive policies. You won't always be covered on more basic types of insurance. In which case, you'll need to pay a company to tow your vehicle.
  Trailer cover	A policy benefit that covers a trailer attached to or being towed by your car.	Most insurers won't pay out if a trailer is owned by someone else. Also, they don't typically cover a trailer's contents.
  Weather events	Covered events can include cyclones, earthquakes, bushfires, storms, floods and hail.	Many comprehensive car insurance policies let you claim for hail damage. Be aware there's usually a waiting period of a few days before you can claim for storms, bushfires, floods or cyclones.
  Windscreen cover	With windscreen cover in place, your excess gets waived so you're not out of pocket if your car window gets damaged.	You can add excess-free windscreen cover to a comprehensive car insurance policy. This could save you hundreds of dollars if you need to replace your windscreen, which can otherwise cost as much as $1,000.
  Partner repairer	Your insurer will send your car to a repairer that they have an agreement with. This is sometimes called "preferred repairer".	Keep in mind a partner repairer may not be close to where you live, and they won't necessarily have expertise in repairing your specific vehicle.
  Personal effects	Cover for your personal belongings if they are stolen or damaged. Personal effects are generally defined as things you can wear or carry such as clothes, laptops and headphones.	Keep an eye on the cover limit per incident. It's often about $500. Also, some insurers include baby capsules as part of their list of personal effects covers.
  Roadside assistance	A type of insurance that protects you if you get stranded because of an issue with your car. It's also known as breakdown cover.	You can add roadside assistance to some car insurance policies; there are very few insurers who'll include it automatically. A roadside assistance callout won't count as a claim.
  Underwriter	The company that assesses the risk of providing you with insurance.	Examples of underwriters in Australia include Youi Pty Ltd, Insurance Australia Limited, AAI Limited and The Hollard Insurance Company Pty Ltd.

Written by

Gary Ross Hunter

Editor, Insurance & Innovations

Gary Ross Hunter was an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146). See full bio

Gary Ross's expertise

Gary Ross has written 718 Finder guides across topics including:

• Health, home, life, car, pet and travel insurance
• Managing the cost of living

Co-written by

James Martin

Editor

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, WIN News, Insurance News, 7NEWS and The Guardian. 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 253 Finder guides across topics including:

• Car, home, life, health, travel and pet insurance
• Managing the cost of living
• Money-saving tips