Short term car insurance
Find out more about temporary car cover
What is short term car insurance?
Short term car insurance is a standard policy that’s held for a short period of time.
Aside from cover that’s supplied by some hire car companies for their rental vehicles, short term car insurance isn’t common in Australia. Instead, standard car insurance policies can be used as an alternative, as these can be cancelled at any time.
Can I get temporary insurance on a car?
While temporary car insurance is not available in Australia, there are options to get short-term cover through a standard policy.
If you’re only looking for a temporary car insurance policy, your insurance provider may offer the option to pay fortnightly or monthly car insurance premiums (or instalments). This way you’re not paying an annual premium up front.
However, standard car insurance policies can be cancelled at any time, even if you’ve paid annual premiums. If you choose to do this, you’ll get any unused premiums back, provided you haven’t made a claim. However, cancellation fees may apply, unless you’ve cancelled your policy within the insurer’s specified cooling-off period.
For rental cars, some hire companies may offer temporary insurance for an extra cost when you pick up your car.
How much is a short term car insurance policy?
The cost of car insurance premiums generally depend on (but not limited to) the following factors:
- Level of cover (e.g. a comprehensive policy)
- The age of listed drivers
- Claims and driving history
- Your address and parking location
- Car repair and replacement costs.
Your basic excess may also impact your premiums. Increasing your excess could lower your premium and vice versa. Before adjusting your excess, consider if you could afford to pay more when you claim.
Can you get temporary insurance on someone else’s car?
The car owner of the vehicle you’re driving should be the primary policyholder, even if you’re using their car temporarily. However, whether you’re listed on the policy or not, you may receive the same cover as the main driver. For example, if you cause damage to another vehicle in a car accident, the policy could cover that instance.
Keep in mind that if you’re not a named driver on the policy, the main driver could be charged an unlisted driver excess if you need to make a claim. It’s also worthwhile to check that there are no restrictions on the policy which would impact cover.
Do you get temporary insurance when you buy a car?
When you buy a motor vehicle, the dealership will generally offer car insurance from their preferred insurer. This car insurance generally works like a standard policy and isn’t ‘temp cover’.
If you want to look for a better deal and switch insurers, you can cancel the policy offered by your dealership and potentially get a full refund on your premiums if you cancel it within the cooling-off period. Cancellation fees may apply if you cancel your policy outside this set period.
Meet our car insurance expert, Adrian Taylor
As a General Insurance expert with over 13 years’ experience in financial services, 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.