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Learn about the process of cancelling your car insurance right here with Savvy.
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Car insurance is necessary for every car owner, but there may be times when your policy is no longer appropriate. Whether it’s because you need a different type of cover, are no longer a car owner, are moving abroad or are simply unhappy with your current policy, there are several reasons to cancel your car insurance.
If you want to learn more about cancelling your car insurance policy, Savvy can help. In this informative guide, we take you through the cancellation process and answer common questions you may have. Find out how to cancel and the implications of doing so today with us.
Regardless of the reason, if you no longer need or want your car insurance, you’re entitled to cancel it. Most of the time, this is a quick, straightforward process. You should:
You can cancel your car insurance policy at any time and for any reason. However, while you have the right to cancel, it’s important to understand any contractual obligations you may have, such as giving advance notice or paying cancellation fees. If you’re still going to be driving in Australia, it’s also important to have alternative coverage in place before cancelling if you wish to continue being covered when you’re on the road.
When you cancel your car insurance policy, you are essentially forfeiting the protection and coverage it provides. Unless you've switched to a new provider, this means that you'll be responsible for covering the cost of any accidents, damages or theft that occur to your vehicle out of your own pocket.
This may also impact your peace of mind when it comes to driving, knowing that you’ll have to pay for any damage to your vehicle or other people’s property yourself. Because of this, it’s important to weigh up the pros and cons of cancelling your car insurance before doing so, whether you’re looking to switch to another insurer or end your coverage altogether.
You may have to pay fees if you cancel your policy early, in other words, before the policy is due to end. These charges depend on the individual insurer: some have set cancellation or administration fees, while others have none at all.
If you cancel when the policy is up for renewal or during your cooling-off period – usually between 14 and 30 days after taking out or renewing the policy – you’re unlikely to face any fees.
As mentioned, if you cancel your car insurance during the cooling-off period, you should receive a full refund, unless you've made any claims. If you choose to cancel your policy and paid for the full 12 months in advance, you may be eligible for a refund of the unused portion of your premium. However, certain factors can affect the refund amount; for example, some insurance providers may have administrative costs or cancellation fees. Furthermore, if you pay your premium in instalments, you’ll likely have to repay any amount still owing to your car insurance company.
To understand the refund process specific to your policy, you should review your policy documents or contact your insurance provider.
Switching your car insurance to a new policy is the main alternative to cancelling your coverage altogether. If you want to switch your insurance, you’ll need to cancel your existing policy. You can do this when your policy is coming up for renewal or at any other time, though keep in mind that you may incur fees for cancelling mid-policy. Before you cancel, you should sign up for a new policy and schedule your new cover to start the day your old policy ends so you can have uninterrupted coverage. You can then inform your existing insurer of your intent to cancel.
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Disclaimer:
Savvy (ABN 78 660 493 194, ACR 541 339) provides readers with a variety of car insurance policies to compare. Savvy earns a commission from our partnered insurers each time a customer buys a car insurance policy via our website. All purchases are conducted via our partners’ websites. The integrity of our comparison service is unaffected by our partnerships with those businesses and our effort remains to bring further brands that do not already use our comparison service onboard.
Savvy’s comparison service includes selected products from a panel of trusted insurers and does not compare all products in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy. We always recommend readers to consult the Product Disclosure Statement (PDS) of different policies before purchasing your car insurance.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.