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.
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
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
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.
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:
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
You can cancel at any time, there's no additional cancellation fee. Any unused premium over the amount of $10 will be refunded to you in 5-15 business days.
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.
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.
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.
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.
This typically can be done online, over the phone or even by email. Contact your insurer for more details.
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.
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.
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
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.
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.
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.
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 667 Finder guides across topics including:
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 229 Finder guides across topics including:
Which insurance should I choose if I am not a Australian resident and just hold a working holiday visa?
Finder
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.
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?
Finder
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.
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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Which insurance should I choose if I am not a Australian resident and just hold a working holiday visa?
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.
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?
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/car-insurance-for-business-use). 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