Car Insurance Renewal

Find out about the process of renewing your car insurance and what to consider in Savvy’s handy guide.

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, updated on February 15th, 2024       

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Car Insurance Banner - Man sitting at home on his laptop holding his credit card to renew his car insurance.

Are you due for your car insurance renewal? It's important to stay on top of your car insurance to ensure continuous coverage and peace of mind on the road, so it’s crucial to understand the process involved with renewing your car insurance and what you should do before signing on the dotted line.

You can learn all about the steps to take in the process of renewing your car insurance policy right here in Savvy’s comprehensive guide. Read about what to consider when renewing your car insurance and how to compare quotes before you buy.

How do I renew my car insurance policy?

Renewing your car insurance policy in Australia is a straightforward process, following these simple steps:

  1. Review your current policy: take the time to go through your existing car insurance policy. Understand the coverage, terms and any changes made to the future policy or your own life circumstances since your last renewal.
  2. Contact your insurer: reach out to your current insurance company ahead of the expiration date of your policy. Inform them of your intention to renew and inquire about the renewal process.
  3. Provide updated information: if there have been any changes to your circumstances, such as address, driving habits or modifications to your vehicle, make sure to provide the updated information to your insurer.
  4. Review and make adjustments: carefully review the renewal offer provided by your insurer. Check if the coverage, excess amounts and premium are suitable for your needs. If necessary, request adjustments to ensure adequate protection.
  5. Make the payment: once you're satisfied with the renewal terms, proceed to make the payment for your policy.
  6. Receive renewed policy documentation: after the payment is processed, you’ll receive a renewed policy document from your insurer. Keep this document in a safe place for future reference. You’ll also be able to access your certificate of currency, which you’ll either receive directly from your insurer or can access via their website.

Remember, it's important to start the renewal process in advance of its expiry to avoid any lapses in coverage. By staying proactive and informed, you can ensure a smooth and hassle-free car insurance renewal experience in Australia.

How do I pay for my car insurance upon renewal?

In most cases, insurers will offer a range of different payment options for you to take up when renewing your policy. These may include:

  • Credit or debit card: insurers accept payment by credit or debit card, allowing you to conveniently make the payment online or over the phone.
  • Direct debit: Setting up a direct debit arrangement allows the insurer to automatically deduct the premium amount from your nominated bank account at the renewal date or in instalments. This means your car insurance will be automatically renewed each year.
  • BPAY: some insurance providers offer the option to make a payment using BPAY, which allows you to transfer funds from your bank account using the BPAY reference number provided by the insurer.
  • Online payment: insurers often provide an online payment portal where you can log in to your account and make a secure payment using your preferred method.
  • Over the phone or in person: if you prefer to speak with someone when renewing your policy, some insurers may enable you to do so over the phone or, if they have a physical premises you can visit, in person.

Why should I compare policies before renewing my car insurance?

The most important thing to consider before you renew your car insurance is whether your current plan is the best possible policy for your needs on the market. By reviewing your car insurance policies every 12 months and comparing other offers, you can make sure you aren’t missing out on cheaper deals or greater coverage.

Some of the aspects of different policies to compare before renewing your insurance include:

  • Your coverage needs: before comparing other policies, check your current coverage and determine if it still meets your needs. Consider factors such as your vehicle's value, usage and any changes in circumstances which may require adjustments to your insurance.
  • Premiums: compare your insurer’s proposed new premium with other providers to help you know whether you’re getting a competitive rate. Shopping around may help you find a better deal and potentially save money.
  • Policy inclusions and exclusions: review the policy details, including inclusions and exclusions. Ensure that your policy covers the necessary aspects and offers the level of protection you require.
  • No-claim bonus: consider your no-claim bonus and its impact on your premium. If you’ve accumulated a substantial no-claim bonus, check if the renewal premium reflects any discounts or benefits associated with it. Additionally, determine whether this discount could be transferred to another insurer if you chose to switch or if you’d lose it in the process of changing over.
  • Policy add-ons: assess any additional optional coverages or add-ons offered by your insurer. Determine if they align with your needs and if the cost is justified by the added benefits they provide. If your circumstances have changed and there are certain extras you’d like to add, determine whether your current insurer can offer them.

By considering these factors, you can make an informed decision when renewing your car insurance policy, ensuring that you have adequate coverage and are getting the best value for your money.

Common questions about car insurance renewal

What factors can impact the cost of my car insurance policy at renewal time?

Several factors can impact the cost of your car insurance policy at renewal time. These can include:

  • Your increasing age and experience
  • Your claims record since you last renewed your policy
  • The type and value of your vehicle
  • Whether you’ve moved since you last renewed your policy


Additionally, market conditions and insurance trends can influence premium rates.

How often do I need to renew my car insurance?

Car insurance policies typically need to be renewed annually. The specific renewal date is determined by the start date of your policy. It's essential to keep track of this date to ensure uninterrupted coverage and compliance with any other agreements (such as if you’re covering a vehicle under finance).

Can I change my car insurance policy before its renewal date?

Yes – you can change your car insurance policy before its renewal date. If you wish to make changes, such as modifying coverage levels, adding or removing drivers or adjusting excesses, you can contact your insurance provider to discuss your options. However, if you wish to switch to a new insurer during your policy term, it’s important to note that you may be liable to pay a cancellation fee.

If I forget to (or choose not to) renew my car insurance, what happens to my coverage?

If you forget to renew your car insurance or choose not to do so, your coverage will lapse and you’ll no longer have insurance protection. While it isn’t illegal to not have comprehensive or third party insurance, being uninsured leaves you financially vulnerable in case of accidents or damages, so it's crucial to renew your car insurance policy on time if you wish to maintain continuous coverage.

However, some insurers may offer a ‘grace period’ of up to a month afterwards where you can still be covered even if you’re yet to buy your policy. This may only be the case for those who pay for their insurance manually and isn’t offered by all insurers, so it’s important to check whether such a period may apply to you.

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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.

Car Insurance Banner - Man sitting at home on his laptop holding his credit card to renew his car insurance.

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