Need car insurance for just a few days or weeks? Discover the best short term car insurance providers in Australia now! As we all know car insurance is a must for drivers in Australia, but not everyone needs a full-year policy. Short term car insurance in Australia is a flexible option for people who only need coverage for a few days, weeks or months. Whether you are borrowing a car, renting a vehicle or driving an imported car in Australia, short term insurance gives you protection at a very low cost without a long-term commitment.
In this blog, we will explore the best short term car insurance providers in Australia (2025 updated list) and guide you on how to choose the right policy for your needs.
What Is Short Term Car Insurance?
Short time car insurance is a temporary policy that provides coverage for a limited period, usually ranging from one day to six months. Unlike standard annual car insurance, policies of short term car insurance companies allow drivers to insure their vehicles only for the time they need, also helping them save money and avoid long term commitments.
Who Needs Short Term Car Insurance?
You might need short term car insurance in Australia if:
- You are borrowing a friend’s or family member’s car for a short period and need your insurance.
- You are renting a car and want extra coverage beyond what the rental company provides.
- You own a collector car in Australia and need temporary insurance before switching to a long-term policy.
- You are a tourist or international driver needing coverage while driving in Australia.
- You are a learner driver or a young driver who only needs occasional car insurance.
- You own a car but only drive it occasionally, making a yearly policy unnecessary.
- You are a business owner who needs short term car coverage for work-related travel.
Now, let’s explore the best short term car insurance providers in Australia for 2025.
Best Short Term Car Insurance Providers In Australia (2025 Updated List)
Below is a list of top insurers that offer short term car insurance in Australia with flexible and affordable options.
1. NRMA Insurance
✅ Coverage Duration: It will be from 1 day to 6 months
✅ Best For: It is best for borrowed cars, rental car coverage and imported vehicles
Key Features:
- Offers comprehensive, third-party and fire & theft coverage.
- Provides temporary insurance for rental cars and borrowed vehicles.
- Available in NSW, Queensland and the ACT.
- Includes roadside assistance in case of breakdowns.
Why Choose NRMA?
NRMA is a trusted car insurance provider in Australia, offering flexible short term car insurance options. Whether you need insurance for a borrowed car, rental vehicle, or imported car, NRMA provides excellent coverage.
2. Budget Direct Car Insurance
✅ Coverage Duration: I will be from 1 day to 3 months
✅ Best For: Affordable short term car coverage
Key Features:
- Low-cost third-party and comprehensive car insurance.
- Covers accidents, fire and theft.
- 24/7 emergency roadside assistance included.
Why Choose Budget Direct?
If you’re looking for cheap short term car insurance in Australia, Budget Direct is one of the most affordable options. Their comprehensive plans include accident protection, making them a great choice for temporary coverage.
3. AAMI Car Insurance
✅ Coverage Duration: It will be from 1 week to 6 months
✅ Best For: International drivers and imported cars
Key Features:
- It covers imported cars in Australia, making it a top choice for foreign vehicle owners.
- Offers temporary car insurance for international visitors driving in Australia.
- Includes comprehensive and third-party policies with flexible terms.
Why Choose AAMI?
AAMI is well known for providing temporary car insurance for international drivers. If you are a visitor or expat driving in Australia, AAMI offers coverage without requiring a local license. They also cover imported vehicles, making them a great choice for non-Australian car owners.
4. Youi Car Insurance
✅ Coverage Duration: It will be from 1 day to 3 months
✅ Best For: Pay as you drive insurance
Key Features:
- Flexible pricing based on how often you drive.
- Covers rental cars and borrowed vehicles.
- 24/7 customer support and roadside assistance are included.
Why Choose Youi?
Youi is perfect for drivers who don’t use their cars frequently. Their “pay as you drive option” lets you pay only for the days you drive, making it a cost-effective solution for occasional drivers.
5. Allianz Australia
✅ Coverage Duration: It will be from 1 week to 6 months
✅ Best For: Business travelers and temporary business car insurance
Key Features:
- Covers temporary business car use.
- Includes roadside assistance in case of emergencies.
- Flexible payment plans allow monthly payments.
Why Choose Allianz?
Allianz is ideal for business travelers and corporate drivers who need short time car insurance for work-related travel. If you drive for business but don’t need an annual policy, Allianz provides a great alternative.
“If you want to know more about top car insurance companies in Australia then, here is the complete guide for you.”
How To Choose The Best Short Term Car Insurance In Australia
1. Duration of Coverage
Short term car insurance policies can range from one day to six months, depending on the provider you choose in Australia. If you only need insurance for a few days or weeks, choose a policy that matches your required time frame. Always check if the insurer offers flexible extensions in case you need extra coverage.
2. Type of Coverage
There are three main types of short term coverage: comprehensive, third party, and fire & theft. Comprehensive insurance covers damages to your car and others, the third party only covers other vehicles and fire & theft protects against specific risks. Choose the coverage type based on your budget and protection needs.
3. Cost and Affordability
The cost of short term car insurance in Australia depends on factors like car type, coverage level and duration. Compare multiple quotes to find an affordable option with good protection. Be cautious of extremely cheap policies, as they may have limited coverage.
4. Coverage for Imported Cars
If you own an imported car in Australia, not all insurers will cover it under a short term policy. Always look for providers like AAMI and NRMA, which offer imported car insurance in Australia and accept foreign or modified vehicles. Always check the policy details for coverage confirmation.
5. Temporary Insurance for Rental or Borrowed Cars
If you’re driving a borrowed or rental car, ensure your short term insurance covers third party liability and damages. Some rental companies provide insurance, but extra coverage may be necessary for better protection.
Final Thoughts:
Finding the best short term car insurance in Australia depends on your needs. Whether you need cheap, flexible or imported car insurance, providers like NRMA, Budget Direct, AAMI, Youi and Allianz offer excellent options.
Before purchasing a policy, compare different providers and choose one that offers the best coverage at an affordable price.
“Now if you want to find the cheapest and best car insurance companies in Australia then there is a complete guide for you.”
🔎 Need Short Term Car Insurance? Compare your options and get insured today!
