Laid up car insurance

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.

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.

If you're only doing a few thousand kilometres a year, policies that reward low mileage could be a great way for you to get comprehensive car insurance, for a reduced price.

• 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

Name	Product	Roadside assistance	Accidental damage	Storm	Choice of repairer	Agreed or Market Value
Budget Direct Gold Low Kilometres Comprehensive Finder Award		Optional			Optional	Agreed or Market	Finder’s summary: Budget’s Gold Low Kilometre option offers comprehensive insurance with decent cover limits. Also, save 15% on your first year's premium when you purchase a new policy online. Who it might be good for: Those looking to drive 10,000 km or less annually with a well-regarded insurer – Budget Direct won best value car insurance at the most recent Finder Awards.	Get QuoteView details Compare	loading Fetching your data...
ahm Comprehensive with Fixed Kilometre Plan		Optional				Agreed or Market	Finder’s summary: ahm's Fixed Kilometre Plan is available as an add-on with comprehensive cover. This “pay as you drive” insurance can save you up to 30% versus its regular comprehensive cover. Who it might be good for: Drivers who are cutting down their ks, but who still want flexibility. With ahm you can pay per 1,000 kilometres and top up as needed. There’s also no excess to pay if you hit a Kanga, making it a good option for rural drivers.	View details Compare	loading Fetching your data...
Huddle Black Comprehensive						Agreed or Market	Finder’s summary: Huddle offers a short-term insurance option that comes packed with features. Get up to $2,000 in cover for stolen keys, roadside assistance and rental car excess cover (only in Australia). Who it might be good for: Drivers looking for the most peace of mind against the unexpected – and who don’t mind paying a bit more for the extra security.	View details Compare	loading Fetching your data...
KOBA Pay per KM						Agreed	Finder’s summary: KOBA uses a pay-per-km system – ideal if you drive less. Its app is easy to use and costs can be as cheap as 3¢ per kilometre. Who it might be good for: Those who want to drive shorter distances over a number of months. This makes KOBA’s up-front fee better value for money.	View details Compare	loading Fetching your data...
Real Pay As You Drive		Optional				Agreed	Finder’s summary: Avoid paying for kilometres you won’t drive with Real while making the most of a decent comprehensive policy. You’ll need to pay to add extras such as hire car cover and roadside assistance. Who it might be good for: Those who drive under 15,000 kilometres and appreciate no policy cancellation fee.	View details Compare	loading Fetching your data...
Australian Seniors Pay As You Drive		Optional				Agreed or Market	Finder’s summary: Competitively-priced cover that has most of the features you’d expect with a comprehensive plan. Policy discounts include a 5% saving for Seniors Card holders. Who it might be good for: Older drivers looking to make decent savings by restricting their mileage. We found Australian Seniors offered the second cheapest rate out of 6 short-term insurance providers.	View details Compare	loading Fetching your data...

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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.

Brand	5,000km	7,000km	15,000km	30,000km	Potential saving between 30KM and 5KM	Get a quote
	$686	$709	$749	$809	$123	Get quote
	$608	$666	$885	$1055	$447	More info
	$775	$800	$845	$913	$138	Get quote
	$700	$723	$764	$835	$173	More info
	$548	$570	$602	$686	$138	More info
	$720	$744	$786	$849	$129	Get quote
	$394	$398	$398	$426	$32	Get quote
	$895	$914	$933	$1,101	$206	More info
	$693	$716	$756	$817	$124	More info
	$839	$909	$927	$1,024	$185	More info
	$909	$940	$960	$1,075	$166	More info

*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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Written by

Nicola Middlemiss

Senior writer

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. See full bio

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