Switching from one vehicle insurance company to another

Last updated on November 25th, 2021 at 02:46 pm by Bill Tsouvalas

Your needs may have changed, and you now require greater benefits or even lower car insurance costs. To switch your car insurance policy to another company is not difficult. All you need to do is to follow some easy steps.

Besides the findings from a Roy Morgan Research, which indicated a 2% increase in satisfaction among car insurance holders between 2013 and 2016, there may be reasons such as price or service to switch to another insurance company. Furthermore, with 115 insurers authorised by the Australian Prudential Regulation Authority (APRA), many are offering special deals to lure new customers. However, before you switch camps, understand why and how you should go ahead.

Is a switch what you really want, or would you rather simply renew?

As your circumstances change, for instance, if buying a new car, you may wish to review your car insurance. If the insurer does not match up to your demands, or if you fall into the 3.2% not happy with their quality of service, however if your insurer offers loyalty discounts, or multi policy discounts if you have more than one policy with them it may be worth it that you just revise and renew with your current insurer.

Some companies coax clients with special offers, to obtain their business. However, your decision to switch should ideally be based on gaining better quality rather than for mere budgetary reasons.

What steps must be taken when switching?

Your first priority would be to research the various insurers. This can seem overwhelming, particularly because there are so many companies, each offering a different deal. Using a comparison website such as savvy.com.au may help you filter through all the main options. Do make sure that you fully understand what each company will offer you. Ask probing questions until you have ascertained all pertinent information which should around mainly inclusions and any exclusions.

Your second step would be to switch. The best time to switch would be when your policy ends. If you switch earlier than the final date, you may have to pay a penalty fee. Needless to mention, but still important, Naturally, your paperwork should be in order so that the new insurer can take over the day your old policy expires. If not, you may not be covered for the time in between policies. In NSW, for example, it is illegal not to have comprehensive cover, so be warned. Also, don’t forget to have all your details, such as VIN number, driver’s licence, etc. ready when you apply. Furthermore, if your car was one of the 99 850 new cars sold in September 2017, you may wish to add a tracking device, as this could save you money on your monthly insurance payments.

Your third step would be to cancel your old policy. Do the cancellation in writing so that you have proof, and to cover yourself against future problems.