Can you get short-term car insurance in Australia?
In a situation where you won't need insurance for a full year? Don’t want to be locked into a contract for that long? Some insurance providers will allow you to pay for a standard car insurance policy in monthly or fortnightly instalments. Even if you choose an annual plan, you can usually cancel it at any time and receive a refund for the unused portion of your premium, but you’ll likely be charged a cancellation fee.
Can you insure a car for one, three, or six months at a time?
There are insurance providers that offer car insurance on a month-to-month basis, but choice is limited. If you’re looking to insure a car for a matter of months, check with your insurance provider to see if it can offer month-to-month options.
If you are in the market for a short-term car insurance policy, you can compare car insurance with Canstar to find providers that will let you pay car insurance premiums month to month. And some might not charge cancellation fees, so you can insure your vehicle for a short time and cancel when you no longer need coverage.
When comparing short term car insurance, it pays to consider the inclusions and exclusions that come with each policy, the coverage you’ll need and how long you’ll need it for, and whether a policy might offer you lower premiums if you opt for a higher excess.
Can you take out car insurance and cancel it later?
Yes, in most cases you can cancel a car insurance policy before the contract is up. If temporary insurance isn't available, you may be able to take out a standard car insurance policy and cancel when it's no longer required.
Most car insurance policies run for 12 months, but most insurers will generally allow you to cancel before that time has passed. Depending on how long you have left on your policy, you may be entitled to a refund of any unused premium. This could be important if you sell your car, move overseas, or switch providers.
Bear in mind cancellation fees may apply and the amount refunded, if any, will vary between insurers. There's usually a cooling-off period of at least 14 days, which may allow you to cancel your cover shortly after taking out a policy, provided no claim has been made.
If you do plan to cancel your policy shortly after taking it out, it's important you check the insurer’s Product Disclosure Statement (PDS) and speak with them directly to understand their cancellation policy. This will help to avoid any surprise fees or refund conditions.
Do you need temporary insurance when you buy a car?
When you buy a car, the dealership may offer car insurance through a preferred provider. However, this will usually be a standard annual comprehensive policy, not short-term or temporary cover.
It’s worth comparing your options and arranging your insurance before you drive the car off the lot, as you may not be getting the best rate or policy for your circumstances. If you do choose the dealership’s insurance but later change your mind, you can usually cancel the initial policy and switch to another provider.
Can you get short-term car insurance for someone else’s car?
If you’re planning on driving someone else’s car, make sure the primary policy holder’s cover will also cover you if you’re not a named driver. It’s worth noting that in some cases, the policy holder could be charged an additional unlisted driver excess if a claim needs to be made after an accident involving a driver not named on the policy. If you‘re renting a car, the hire company will usually offer an opt-in insurance policy option for an additional cost.
How much does short-term car insurance cost?
There is no set cost for short-term car insurance in Australia. The amount you pay will depend on the type of cover you choose, your insurer, and how long you need the policy for. If you're using a standard car insurance policy as a short-term solution, factors that can affect the cost include:
- The level of cover, whether basic or more comprehensive
- The age of the driver or drivers
- The driving history of the driver or drivers
- The make and model of the vehicle being insured
- The excess you choose (a higher excess generally means lower premiums, but more to pay in the event of a claim)
