New Cars

Understanding Short Term Car Insurance


Do you need your car insurance only for a short period? A month or a week may be? Or maybe you need your car insurance to cover you only for a few kilometres? Well, you can get such insurance policies in Australia.

If you only need temporary insurance, you have two options. You can either buy regular insurance policies and opt to pay monthly or buy for pay-as-you-drive insurance policies. When paying for insurance policies monthly, you can cancel the policy whenever you want. The pay-as-you-drive option lets you pay only for the kilometres you drive each year. This kind of travel insurance is good if you seldom use your car.

Even when you need short term insurance, you still need to compare insurance quotes to ensure you get the best deal. If you have regular policies but pay monthly, most insurers will charge you more. As such, you need to compare insurance quotes before you buy one policy.

You can get car insurance for less than a month. If you need car insurance for one day, such as for a trip, your best option is to hire a car. If you need car insurance for a week, search for insurers who allow fortnight payments. Getting monthly insurance policies is easy as all you need is regular insurance policies.

Pay-as-you-drive is a great option for when you need temporary insurance. Not all car insurers have this policy but it should be easy for you to get one. The policy allows you to enjoy all the benefits you’d get with comprehensive insurance and you pay less if you drive less.

Short term insurance policies are disadvantageous in some ways. Monthly or fortnight payments might be relatively more expensive. Again, insurance policies such as pay-as-you-drive are only available with comprehensive car insurance. It is also challenging to know the distance you will drive in a given period.