If you are a young driver who is looking for car insurance but doesn’t want to take out a full annual policy, then our temporary car insurance for under 21s is perfect for you. Whatever the reason, you don’t need an annual policy, our temporary car insurance deals can help you save money, offer you peace of mind and can get you behind the wheel in no time.
When you just need short term cover, putting in the time and effort it takes to get an annual policy can not only be expensive, but it can be needless. Whether you are just looking for cheap one day car insurance for under 21s, or you are looking for 30 days of temporary cover, we can help.
What is a young driver?
According to the Department for Transport, a young driver is one between the ages of 17 and 24 years old. In most cases, any driver under the age of 25 will face a higher policy cost because of their age. In fact, Money Saving Expert claims that the average driver pays an annual premium of almost £800, and under 25s pay £1,400 on average – almost double!
Why do I need temporary car insurance for young drivers?
Whenever you are driving, you need to be insured. Although you can get annual policies, on the occasion where you are driving a different car for short periods, getting temporary insurance is more cost-effective and quicker.
When would I need temporary car insurance for young drivers?
- you are test driving a car before purchase
- you are borrowing a car for an errand/journey
- you are practising driving in a borrowed car after passing your test
- you are borrowing a larger vehicle for a house move or road trip
- you are sharing the driving on a long trip
- you have a gap between your annual policy ending and another starting
- you are taking a new car home after purchase.
If you are currently a learner driver and want to learn to drive in your own car, or a friend or relatives, our provisional driver insurance is available for those 17 and above and can be arranged for everything from one day, to five months.
What are the benefits of temporary car insurance?
Whether you only need day insurance for under 21s or are looking for something a little longer, there are plenty of benefits to a temporary policy.
Benefits of temp car cover for young drivers:
- your No Claims Discount won’t be affected if you have an accident
- the car owner’s No Claims Bonus won’t be affected in the case of an accident
- all cover is fully comprehensive
- cover can be set up in as little as 15 minutes
- cover can be pre-arranged.
Can you get temporary car insurance if you are under 21?
Yes, our comprehensive cover is perfect for most drivers aged 18 – 21. All you need to provide is your name, date of birth, email address, the car registration and your driving licence number. The process is quick and easy, can be organised before the cover needs to start or on the day, and makes light work of arranging short insurance cover for under 21s.
Can you get temporary car insurance for 17 and 18-year-olds?
Unfortunately, we do not offer insurance to 17 year olds that have passed their test, only 17 year old learner drivers.
How much is temporary car insurance if I am under 21?
The price of your policy can change depending on a range of factors, including your location, your occupation and the car you drive. The best way to know how much temporary insurance will be is to get a quote price for the length of time you need.
How to get under 21 temp car insurance?
Getting short term car insurance when you are aged under 21 is a simple process. To receive a quote, all you’ll need is:
- your name, DOB, address and email
- your occupation
- the registration number of the car you want to insure
- your driving licence number.
You’ll also need to tell us the length of time you want cover for, when it needs to start and whether you want any add-ons, like breakdown cover.
Then, once you’ve received your quote you can purchase it using a debit or credit card.
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If you only need car insurance for a brief period, such as a month, a week, or even one day, there aren't any car insurers that specifically offer this kind of product. However, you can still get cover!
Here's how:
1. Take out a regular policy and pay monthly - cancel it when you don't need it anymore.
2. Go for a pay-as-you-drive policy, where you only pay for the kilometres you drive each year
If you're after car insurance for a short-period of time for whatever reason, this is probably the simplest way to get cover for your vehicle.
- Take out a car insurance policy the same way you usually would.
- Pay monthly as opposed to yearly. Bonus points if you opt for an insurer that doesn't charge you extra for paying monthly (you can find them in our table above).
- When you're done with needing cover, cancel your policy!
Whilst you'll need to hack a small cancellation fee, it's probably better than paying a year's worth of premiums.
There are policies that provide immediate cover if you need to drive a different vehicle for a short period of time. Here are some options:
- 1 day: If you're taking a day trip or are moving house and simply need car insurance for one day or a couple of weeks, it might actually be better for you to just rent a car or get a GoGet.
- 1 week: Some insurers will allow you to pay fortnightly. If you're driving for a week, it might be best to just pay fortnightly and then cancel your policy when you don't need it anymore.
- Monthly: You could choose whatever policy takes your fancy, choose to pay monthly, and then cancel it when you don't need it anymore. If you're not driving a lot in this month, you could also look into pay-as-you-drive cover which only requires you to pay for the kilometres you plan on driving over a certain period.
So you already know that Australian car insurers don't offer temporary car insurance. Instead, you will have to choose one of the four following options to get the cover you need:
- Find a pay-as-you-drive car insurance policy
- Pay premiums monthly or fortnightly
- Add a driver to an existing policy
- Rent a car instead
- Pay-as-you-drive policy
- Pay premiums fortnightly or monthly
- Add a driver to an existing policy
- Rent a car
Pay-as-you-drive policy
This type of policy lets you only pay for the distance you drive, while still extending comprehensive car insurance benefits for an ongoing period. You might think of it as a temporary car insurance that works based on distance driven, instead of for a period of time.
- How it works: Choose an insurer that calculates your premium based on the distance you drive.
- Who it could be suitable for: If you need temporary car insurance in Australia and have a rough idea of how far you will be driving.
Pros
- Enjoy all the benefits of comprehensive car insurance
- The less you drive, the less you pay for cover
- Full range of optional extras available
Cons
- You need to have a rough idea of how far you’ll be driving all up, and not just how long you need the car for
- An additional excess will apply to claims if you have exceeded your nominated distance
- A “price floor” will typically apply, limiting your savings if you’re only using the car in the very short term
- Generally only available with comprehensive car insurance policies
Another option is to select a standard car insurance policy of your choice and pay your premiums monthly or fortnightly. This can be a fast and effective way of finding the right type of cover for your needs and accessing the full range of car insurance benefits. Once you no longer need cover, simply cancel the policy.
- How it works: Pick any car insurance policy you want that allows you to pay your premiums fortnightly or monthly as you go rather than annually in advance. When you no longer need cover, cancel the policy.
- Who it could be suitable for: Anyone who needs short-term car insurance in Australia and wants the freedom to pick the policy of their choice.
Pros
- Choose from an extensive range of policies
- Tailor cover to suit your needs
- Choose from comprehensive, third party fire and theft, and third party property damage policies
- Only pay for the cover you will use
Cons
- Cancellation fees apply
- You will need to pay special attention to the policy terms and conditions to ensure this is a viable choice
If you’re borrowing a relative or friend’s car for a temporary period, you could ask them if they would consider adding you to their car insurance policy as a listed driver.
- How it works: A temporary driver is added to the car owner’s existing car insurance policy for a limited period.
- Who it could be suitable for: People who are borrowing someone else’s vehicle for a short period, for example if you’re home from uni for the summer and driving your parents’ car.
Pros
- No need to take out a separate policy
- Simple and convenient option
- Access all the benefits of a regular car insurance policy
Cons
- Can significantly increase the cost of cover
- Make sure to avoid the illegal practice of "fronting", which is where you wrongfully list someone else as the main driver in return for cheaper premiums
This option may be more cost-effective than you think. Many credit cards will let you pay for rental cars with reward points, and there are many car rental discounts available, such as free upgrades, free days at no extra cost and straightforward price reductions. Some credit cards also offer complimentary rental car insurance cover, or you can purchase the cover you need from the rental company.
- How it works: Rent a car for the period required.
- Who it could be suitable for: People who are moving house and may require a specialist vehicle such as a ute or a van.
Pros
- Great for anyone who needs a very short-term solution
- You are able to choose a vehicle to suit your needs
- There are many discounts and savings available
- Some credit cards offer complimentary car hire insurance
- You can purchase cover from the rental company to cover the vehicle during the rental period
Cons
- Insurance from rental companies can be expensive
- Is only suitable for very short-term needs
Compare some car hire options here
Short-term car insurance is available to suit the needs of a wide range of Australian drivers. If you hold a valid licence that allows you to drive in Australia, you’ll generally be able to qualify for cover.
However, special eligibility requirements may apply depending on the temporary car insurance option you choose. For example, if a friend or relative is going to add you to their policy as a listed driver, you’ll need to make sure that you list the correct person as the main driver of the vehicle.
In addition, some insurers may refuse cover to drivers of specific ages, such as those under 18 years of age or senior motorists. Check with your insurer for full details of any eligibility requirements that apply.
It is not possible to find dedicated comprehensive or third-party property car insurance policies that cover you for a set period of six months. Instead, the most cost-effective way to get the cover you need can be to buy a 12-month policy and then simply cancel it after six months.
However, make sure you look closely at the early cancellation fees and terms set out in the policy before deciding whether this option will save you money. Issues to be wary of include:
- Cancellation fees. Some insurers charge a fee if you cancel your policy after six months. This can be up to around $40 depending on the insurer.
- Premium refunds. If you’re paying in advance for 12 months, many insurers will refund your unused premium.
- Paying month to month. If you’re paying your premiums on a month-to-month basis anyway, you shouldn’t need to worry about refunds.
The general exclusions that apply to ordinary car insurance policies also apply to short-term car insurance. For example, you will not be covered if:
- You were driving while under the influence of alcohol or drugs
- Your vehicle was being used in an unsafe or unroadworthy condition
- Your vehicle was being driven while overloaded with passengers or goods
- Your claim is for wear and tear, gradual deterioration, rust or depreciation
- Your claim is for tyre damage caused by road punctures, cuts or bursts
- Your claim is for repairs to old damage
- Your claim is caused by mechanical, structural or electrical failures
- Your claim is for intentional loss or damage caused by you or someone acting on your behalf
- Your car is legally seized or repossessed
- Your claim arises due to your involvement in criminal or illegal activity
- You fail to properly secure your car after it breaks down, is involved in an accident or is stolen and recovered
You can find out more about what car insurance won’t cover in our guide to car insurance exclusions.
Which short-term car insurance option is right for you? To work this out you’ll need to answer a few simple questions:
- Why do you need cover?
- How long do you need cover for?
- What type of car insurance do you want?
Once you know which of the four options is the best fit for you, it’s time to start comparing quotes and policy features across multiple insurers.
Picture: GettyImages
Alexandra Koster is Finder's publisher for car, home and pet insurance. She has a Tier 1 certification in General Insurance, as well as a Bachelor of Arts in Film and Cultural Studies from the University of Sydney. Her hobbies include reading Product Disclosure Statements and deciphering complicated insurance lingo to help people save on their insurance so that they can spend their money on better things – like dogs.
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