You might think changing insurance companies is complex, but it doesn’t have to be. It’s a bit of a misconception that switching car insurers is difficult. We’ll take you through how to switch car insurance, plus what refunds and exclusions you might face when switching.
Your current insurer may be offering a truly fantastic product that you’ll struggle to replace. On the other hand, perhaps your current car insurance policy is not up to scratch with the market today.
In any case, do a bit of research before you make any decisions. Determine what you’re happy to pay and what features you need, not just what you want. Then, go out and get quotes from other insurers and compare them with your current policy; you can use our free service for this, and you’ll be done in minutes. It’s also vital to only pay for the extras you require.
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 and premium refunds).
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 the day before to ensure you’re always covered.
Purchased your car with a loan? Generally, you’re required to provide the financiers (i.e. whoever 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, it’s even more important to make sure you have uninterrupted coverage when switching insurers.
If you choose to cancel your policy to move to a new one, it may be best to do so at the end of your renewal period or current payment cycle, so you can exhaust the remaining cover you’ve already paid for.
Renewal letters are generally sent 14 days prior to your actual renewal date. Don’t worry; your insurer is required by law to alert you when this is happening (usually via email or post).
Also, you will have a cooling-off period from the date you pay or renew your policy where you can cancel the policy without incurring any costs or fees (provided you haven’t made a claim in that time).
So, here’s the first real step to cancelling your policy: call your insurer, ideally more than 14 days before your policy renews. During your conversation, it’s important to:
There are many reasons why you might want to switch car insurance companies. Here are four key factors that encourage Australians to switch to a new car insurance policy:
Always check the benefit limits, exclusions and all other policy details in the relevant Product Disclosure Statement (PDS) before you buy a new policy.
Yes, you can change your insurance provider before the renewal date of your insurance policy. At the start of your new policy, you’ll have a cooling-off period (usually 21 days but can be as little as 14) where you can cancel for a full refund provided no claim has been made.
If you cancel and change car insurance companies after the cooling-off period but before your renewal date, you can still be refunded for ‘unused’ premiums. However, your previous insurance company may charge exit fees and administration costs. If you pay your insurance monthly, you may not receive any refund when cancelling.
If you pay annually, you may have a couple of months of unused premiums leftover. These will be refunded when you cancel or switch, minus any cancellation fees and other costs.
There’s no single car insurance policy that’s best for everyone. You might want a comprehensive car insurance policy with roadside assistance and other benefits included, or maybe just a Third Party Property Damage policy without all the bells and whistles.
Regardless of what level of cover you want or what type of policy you move to, you can compare and switch with ease. You may find that another company has a better rate than your current provider for the same level of cover, or you might find a different policy provides greater value for you.
Compare your options for free in minutes with Compare the Market.
Whether or not you decide to switch policies, there are some ways that you can reduce your insurance costs. These include:
Read more about how to reduce your car insurance premiums with our handy guide.
Unfortunately, many types of discounts may not be carried over to your new policy. However, some insurance companies will honour any no claim discounts (NCD) you have, provided you meet certain term and conditions when you switch.
You can switch insurers while you have an outstanding insurance claim. Your old insurance provider will process your claim as normal, so long as the incident you’re claiming for occurred while you had cover.
If you switch while claiming for a total loss on your car (i.e. a write-off) and were paying in monthly instalments, your insurance provider may deduct the outstanding monthly payments for the period of cover from your insurance payout.
Personal finance lenders typically require you to get car insurance when buying a new car with a loan (they’ll generally require comprehensive cover). Car dealerships often offer their own insurance, but you can choose your own insurance company or switch car insurance later.
Once the loan is settled and the car is yours, you can switch to a new car insurance company. You may find that it’s best to look at a comprehensive policy with an agreed value option; this means that if anything happens to your car, you have certainty over how much you’ll be paid to assist you in paying off the loan.
If you’ve decided to switch car insurance, we can help you out. Our free car insurance comparison service compares a number of policies from a panel of car insurance providers across Australia.
Within minutes, you’ll be comparing and filtering car insurance quotes with our easy-to-use tools, and if you see a policy you like, you can apply for it straight from our results page.
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