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How to Change Car Insurance

Find out how to change your car insurance provider and what factors to consider with Savvy.

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, updated on February 15th, 2024       

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Choosing the right car insurance is crucial for safeguarding your vehicle and providing peace of mind on the road. If your circumstances change, you may feel you need to switch your car insurance to ensure you continue to receive the cover you need.

In this comprehensive guide, Savvy takes you through the process of choosing a new provider, examining why you might want to switch and factors to consider.

How do I change my car insurance policy?

Changing car insurance is generally a straightforward process. You should be able to switch insurance provider in just a few simple steps:

  • Evaluate your current policy: Take the time to review your existing car insurance policy, considering the level of cover, premiums, excess and any limitations or exclusions. This will help you determine if it’s the right time to make a change.
  • Research and compare insurance providers: Compare quotes from different insurance companies, considering factors such as coverage options, customer service, reputation and pricing. If you are looking for a new car insurance policy, you can compare quotes in minutes online.
  • Choose your new policy: The next step is to choose the policy that best suits your needs. Carefully read through the policy documents, terms and conditions to understand the coverage details and ensure they meet your expectations.
  • Cancel your old policy: Before finalising the switch, you need to cancel your existing car insurance policy. Contact your current insurance provider to inform them about your decision to switch, taking into account the notice period and any other requirements.

It’s crucial to ensure there is no gap in coverage during the transition from your old policy to the new one. You should make sure the new policy becomes effective on the same day the old policy expires so that you stay protected on the road.

Can I change car insurance at any time?

Yes, you can change car insurance at any time, even if you are in the middle of your policy term.

However, if you decide to switch providers before your policy renewal date, it’s important to check if your current policy has any conditions or penalties for changing before the term expires.

Will I need to pay any fees to switch car insurance providers?

If you decide to change car insurance provider, you may be required to pay fees depending on when you cancel your policy and the specific terms of your policy.

If your car insurance policy is up for renewal, you can typically switch providers without incurring any cancellation fees. It’s a good opportunity to evaluate your options and explore new insurance providers that better suit your needs.

During the cooling-off period at the start of your car insurance policy, which typically lasts between 14 to 30 days, you have the opportunity to cancel your policy and generally receive a full refund of any premiums paid, provided you have not made any claims.

If you decide to change car insurance providers mid-policy, the terms and conditions of your existing policy will come into play. While you may be able to get a partial refund for unused premiums, you may also face cancellation fees, administration costs or other costs. This can vary, so it's crucial to carefully review your policy documents or contact your insurance provider directly to understand any penalties or requirements associated with cancelling mid-policy.

Why might I change car insurance?

There are several reasons why you might consider changing your car insurance policy:

  • Cut costs: by shopping around and comparing quotes from different insurers, you may find more affordable options with similar or better cover. Lower premiums can help you save money in the long run.
  • Get more for your money: switching car insurance gives you the opportunity to find a policy that offers additional benefits or features that are important to you, such as roadside assistance or rental car reimbursement. You may also be eligible for new customer discounts.
  • Pay only for what you need: your circumstances may have changed since you purchased your car insurance, whether you’ve bought new vehicle or changed your driving habits. Evaluating your coverage needs and finding a policy that aligns with them is crucial to ensure adequate protection on the road.
  • Customer service: if you’ve had poor experiences with your current insurer’s customer service or claims handling, switching to a new provider with a better reputation for customer support can greatly improve your overall experience.

What factors should I consider when changing car insurance?

Frequently asked questions about changing car insurance

Can I keep my no-claim bonus if I switch car insurance providers?

Your insurer may allow you to transfer your no-claim bonus to the new policy, as long as you provide proof of your claims history. However, specific rules and eligibility criteria may vary so it’s important to check with your current insurer and prospective new insurer to understand their policies.

Can I switch car insurance providers while I have a claim outstanding?

You will generally be able to switch car insurance providers even if you have a claim outstanding and switching insurers won’t affect the status of the existing claim. However, any ongoing claim process will continue to be handled by your current insurer until it is resolved. It’s important to consult both your current and prospective insurers to understand the process and implications of switching while a claim is still in progress.

Can I transfer car insurance from my old car to my new car?

Many insurers will allow you to switch your car insurance from your old car to your new car. However, there is a chance that your premium will change, based on factors such as the age, make and model of your car.

How often should I review my car insurance?

Even if you are happy with your insurer and car insurance policy, it may be worth reviewing your policy whenever it is up for renewal to ensure it still meets your needs and remains competitive in terms of price and coverage. If you find a better deal, your current insurer may be willing to match it, or you could switch if not.

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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.

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