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

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Name	Product	Roadside assistance	Accidental damage	Storm	Choice of repairer	Agreed or market value
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.	Get Quote View details	Compare	loading Fetching your data...
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. Who it might be good for: Those who want good customer service with lots of inclusions.	Get Quote View 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 Quote View 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 comprehensive car insurance premium when you buy online. T&Cs apply. Who it might be good for: Multiple people using one car.	Get Quote View details	Compare	loading Fetching your data...
Bingle Comprehensive						Market	Finder's summary: Our data shows it’s the cheapest comprehensive policy. It just covers the basics such as damage to your car, theft and storms – it doesn’t go in for add-ons and extras. Who it might be good for: Those wanting a low-cost, no-frills policy.	Get Quote View details	Compare	loading Fetching your data...
QBE Comprehensive Green Company					Optional	Agreed or Market	Finder's summary: Our best-rated Car Insurer for Customer Satisfaction in 2021/2022 and Green Insurer for the last 3 years. ⭐ 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, such as 3-year new car replacement (e.g. they'll give you money for a new car for up to 3 years if yours is written off).	Get Quote View details	Compare	loading Fetching your data...
ahm Comprehensive		Optional				Agreed or Market	Finder's summary: Its "pay as you drive" cover can save you up to 30% compared to its standard comprehensive cover. There's also no excess to pay if you hit a Kanga or other animal. ⭐ Current offer: Get 12 months of roadside assistance included when you take out a new comprehensive car insurance policy. T&Cs apply. Who it might be good for: Rural drivers and those who drive less than 15,000 km a year.	View 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

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:

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

Why you can trust Finder's car insurance experts

We're free

You pay the same as buying directly from the car insurer. Better still, we regularly run exclusive deals that you won't find on any other site – plus, our tables make it easy to compare policies.

We're experts

Our team of car insurance experts have researched and rated dozens of policies as part of our Finder Awards and published 330+ guides to make it easier for you to compare.

We're independent

Unlike other comparison sites, we're not owned by an insurer. That means our opinions are our own and we work with lots of car insurance brands, making it easier for you to find a good deal.

We're here to help

Since 2014, we've helped 300,000+ people find car insurance by explaining your cover options, simply and clearly. We'll never ask for your number or email. We're here to help you make a decision.

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.