There are two steps you’ll need to follow when switching car insurers. Yep, just two. It’s a total misconception that switching car insurers is difficult. In reality, it’s not complicated … although it (ideally) does require good timing on your part.
Before you start, determine if switching is right for you.
It’s entirely possible your current insurer is offering a truly fantastic product that you’ll struggle to replace. Or, maybe you selected a product that’s not up to scratch with the market today.
In any case, do a bit of research before you make any decisions. Determine (i) what you’re happy to pay, and (ii) what features you need (not want). Seriously, did you even use the features last year, or the year before? Exhaustive cover is nice, but you could be paying for something you don’t need.
Then, go out and get quotes from other insurers. Use our website and you’ll be done in minutes! Additionally, don’t be afraid to call up your current insurer and ask for a better deal. If they can’t match the other products you found, it confirms that it’s time to switch.
Finally, check your current policy’s product disclosure statement (PDS) to see if there are any stipulations regarding the cancellation of your policy (e.g. exit fees, premium refunds). Grab a cup of coffee, because the terms and conditions in those documents are usually a few pages long!
Step 1. Cancelling your existing policy.
Okay, so you’ve decided to switch policies. If you choose to cancel, it may be best to do so at the end of your renewal period or payment cycle, so you can exhaust your remaining cover. In a perfect world, you would switch to your new policy as your old one comes up for renewal and cancelled. Renewal invitations generally happen 14 days prior to the actual renewal date – don’t worry, your insurer is required by law to alert you when this is happening (usually via email or post).
So, here’s the first real step: call your insurer, ideally before the 14 day period prior to policy renewal (as per the law).
- State your intention to cancel. Let your insurer know you wish to cancel – check if they have an internal process for doing this (e.g. where you have to provide written notice), but in most cases you can cancel over the phone.
- State the date in which your policy is to become inactive. Select a date that comes at the end of your existing payment cycle so your insurer doesn’t need to refund you any moneys already paid (which can take time). Take note of this date.
Remember, you can still cancel the policy inside the cooling off period and you will not incur any costs or fees.
Step 2. Find and sign up for a new policy.
Cancelling can be a pain, but signing up is simple! Use our site to compare your options, find one you like, and go from there. Make sure your new policy becomes active the day your old policy expires, or several days before – to ensure you are always covered.
Purchased your car with a loan? Generally, you are required to provide the financiers (i.e. who you got the loan from) with a certificate of insurance. Your loan terms and conditions may outline that you require insurance while the car is under finance. If so, make sure you have uninterrupted coverage when switching insurers.
Why switch car insurers at all?
There are many reasons that insurance companies and other websites may get you to switch car insurance. We’ll give you three that are at the crux of what most Australians care about.
- To save money.
- To get more for your money.
- Your situation has change For example,
- Your children are getting their licenses.
- You’ve bought a new car.
- You’ve moved states/territories.
- You’re able to secure discounts you couldn’t before (e.g. low kilometre driver discounts).
Australians want a fair product that delivers exactly what it says ‘on the tin’, and we want that product to come at a fair price. What do we mean when we say ‘getting more for your money’? Great customer service, a fast claims turnaround with guaranteed repairs, and more extras bundled with your policy.
And as for saving money, well, we could all use a few more dollars in the bank. So if you are ready to see if you can save, why not compare car insurance to see if you can find a better deal.