.svg)
Cover note insurance
Cover note insurance
Written by
Kervin Mathew
Edited by
Ellie Garran
Reviewed by
Adrian BennettCompare car insurance policies the easy way
Save time and effort by comparing a range of car insurance quotes with iSelect
Long story short
Cover note insurance is no longer offered in today’s market
It used to provide short-term cover while customers decided which policy to get.
Today, insurance policies have cooling-off periods instead
Most policies have a 14 to 30-day refund window, provided you haven’t made a claim.
You could also consider a policy with monthly premium payments
It could give you more flexibility with paying your premium over a shorter period.
What was cover note insurance?
Cover note insurance was a form of short-term car insurance. Cover notes were intended to provide interim cover while giving you time to shop around and be sure you were getting car insurance cover that matched your needs. It was particularly handy if you bought a new car or were looking to switch providers, or both.
What’s the difference between a cover note and an insurance certificate?
Unlike a car insurance certificate, a cover note didn’t prove that your car had long-term insurance, just temporary insurance. Also, cover notes were usually free and didn’t require you to commit to a policy term, whereas an insurance certificate is a policy document you’d get only if you paid for the policy.
A cover note was:
- a temporary contract
- a ‘bridging’ policy until you get cover
- typically free of charge and non-binding.
An insurance certificate is:
- proof of longer-term cover
- included when you buy or renew insurance
- valid only after you pay for your policy.
Can I get cover note insurance?
No, you can’t get a cover note anymore as most insurers have stopped offering them. What’s reassuring is that instead, most car insurance policies today come with a cooling-off period that can provide cover while you’re comparing car insurance options. If you find a better deal on car insurance, you can cancel the policy during the cooling-off period and get a full refund, subject to policy terms.
What can I get instead of cover note insurance?
Because cover notes aren’t around anymore, your main option is a standard car insurance policy. Car insurance policies can come with cooling-off periods or monthly or sometimes fortnightly payment options.
A cooling-off period gives you time to decide if the policy is the right choice for you. It starts when you buy your policy and typically lasts for 14 to 30 days. If you decide you don’t want the policy, you can cancel it within the cooling-off period and get a full refund (subject to policy terms).
The only potential drawback is that if you make a car insurance claim during a cooling-off period, you won’t be able to get a full refund if you cancel your policy.
Some insurers offer monthly or fortnightly payment options to help split your premium into more manageable instalments. This can help if you don’t have the funds to pay your car insurance premium up-front. However, paying for car insurance monthly or fortnightly can cost more over a full policy term. And if you make a claim, your insurer may ask that you pay any remaining premium before your claim is accepted.
There isn’t a separate car insurance product for temporary cover, but you may be able to use a standard policy for your short-term car insurance needs. Keep in mind there can be downsides, such as cancellation fees or other charges if you make a claim, or cancel your policy outside the cooling-off period.
Be sure to read the product disclosure statement while considering a policy for short-term cover, keeping an eye out for exclusions and conditions of cover. It’s also important to note that car insurance doesn’t cover breakdowns or flat tyres; you might need roadside assistance for that.
Helpful tip
When taking out car insurance, think about the level of cover you’ll need even during the cooling-off period. Third-party policies mainly cover third-party property damage and not your own car. On the other hand, comprehensive car insurance can include cover for your car, as well as other features such as new car replacement and optional extras like reduced windscreen and window glass excess.
Adrian Bennett
General Manager for General Insurance
Looking for temporary car cover?
Get a quick car insurance quote using the iSelect online comparison tool to help guide your decision. Just tell us a bit about your car, yourself and the type of car insurance you’re after, and we’ll help you find a new policy, whether it’s comprehensive cover or third-party car insurance. Use our tool today and compare policies from a range of well-known car insurance brands in Australia, pick the one you like, and we’ll set you up in a matter of minutes!
Get started on comparing car insurance policies!
Save time and effort by comparing a range of car insurance quotes with iSelect
iSelect General Pty Ltd (ABN 90 131 798 126. AFSL 334115) has partnered with Compare the Market (ABN 83 117 323 378. AFSL 422926) to compare a range of car insurers and policies. Not all providers in the market or all policies offered by the partners are compared and not all policies or special offers are available to all customers.
A number of our participating general insurance brands are arranged by Auto & General Services Pty Ltd ACN 003 617 909 on behalf of Auto & General Insurance Company Limited 111 586 353, both of which are related entities of iSelect Limited. Our relationship with those companies does not impact the integrity of our comparison service. Click here to view iSelect’s range of providers.
Any advice provided by iSelect is of a general nature and does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of any information or general advice iSelect gives you, having regard to your personal situation, before acting on iSelect’s advice or purchasing any policy. You should consider iSelect’s Financial Services Guide which provides information about our services and your rights as a client of iSelect. iSelect receives commission for each policy sold that is a percentage of the premium or a flat fee. Ask us for more details before we provide you with any services.