Car insurance cover notes explained

Average customer rating: 4.3/5
Written by Kenneth Young
Reviewed by Adrian Taylor
Updated April 16 2024

What is cover note insurance?

Cover note insurance is rare these days but was originally designed to provide temporary cover while transitioning to a new car. The idea was to protect your new car in the short term (typically up to 14 days) until you got appropriate insurance for it.

Car insurance cover notes didn’t have upfront costs, but you would have to pay if you wanted to keep the policy or needed to make a claim on it.

If you didn’t need to use your temporary cover note insurance, you would then buy a full car insurance policy and let the cover note car insurance run out or cancel it.

Is cover note insurance for cars still available?

Is cover note insurance the same as a cooling-off period?

Cooling-off periods

Cooling-off periods are the initial time frames after purchasing a policy during which you may switch or cancel it if you change your mind. If you exercise this option, you may be eligible for a full or partial refund provided you haven’t already made a car insurance claim.

Typically, insurance companies offer 14-day or even 21-day cooling-off periods regardless of your level of cover.

Are all cooling-off periods the same?

Are waiting periods the same as cooling-off periods?

What happens if I make a car insurance claim during a cooling-off period?

How to decide which car insurance you’ll need

Cover note insurance isn’t available from most Australian insurance providers anymore, but our online comparison tool makes it easy to compare insurance quotes for a variety of other types of car cover policies.

Simply enter your car’s details, answer a few simple questions and decide which type of car insurance you want. The four main types of car insurance are:

Comprehensive car insurance

Third Party Fire and Theft insurance

Third Party Property Damage insurance

Compulsory Third Party (CTP) insurance

Are there any short-term car insurance options?

If I buy a new car, can I transfer my car insurance policy?

Meet our car insurance expert, Adrian Taylor

Adrian Taylor
Executive General Manager – General Insurance

As Executive General Manager of General Insurance at Compare the Market, Adrian Taylor is passionate about demystifying car insurance for consumers, so they have a better understanding of what they’re covered for. Adrian’s goal is to make more information available from more insurers, to make it easier to compare and save.