1 in 4 Australians are likely to switch their car insurance policy

Last updated on November 25th, 2021
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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The power of the internet has allowed for better informed Australians who utilize it to bag a deal that is affordable and doesn’t compromise quality. Recent research by Roy Morgan showed that one in four Australians (2.54 million) made a move to a new car insurer who offered a better deal before approaching their current provider.

The research revealed that comprehensive car insurance owners will only speak to their insurer to give them a better deal, after finding one that beats their current offer.

For the first time in years Aussies who have comprehensive car insurance have opted to place the power in their hands by moving away from allowing their companies to automatically renew their policies which was at 80.9% in 2013, which has dropped to 78.5% in 2017. Before you look to secure a new deal with a car insurance deal that beats your current deals, here are a few mistakes to avoid.

Making a threat to move without comparing

This is the equivalent of going to court, yet you have little to no evidence to back you up. Take your time and compare comprehensive car insurance deals that match your vehicle. Online tools and comparison websites have made it possible to narrow down an estimate that will match your finances without breaking the bank. The best way is to compare this on an apple for apple basis, and not rely on hear say unless if it is from a credible source.

Not knowing how much cover you need

By not knowing how much you need to cover your vehicle can become frustrating when it’s time to make a claim. Thin of it in terms of buying a fitted sheet that just doesn’t reach the corners of your bed. You could speak to a professional insurance broker who will be able to advice you on what will be suitable for the type of vehicle you have. They will be able to assist you by taking various factors such as what type of driver you are, the age of your car, the model and make when quoting you.

Not Asking

Failing to ask can cost you. By asking around and speaking to an insurance agent can help you weigh your options. It will also help you make a better informed decision when comparing quotes. Ask if you will be able to secure any discounts on your car insurance premiums. You can also find out what to do to further reduce your premiums. Ask if they offer a good driver discount if you have taken a safety driving course.

It can get confusing

Car insurance terms and conditions that come with the policy is not something everyone can easily grasp. There is no need to suffer in silence. If you don't understand anything that has been stipulated, ask your agent. It will be best not to sign anything you don’t understand to avoid any nasty surprises.

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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

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