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Can you get better car insurance by switching?

Here are some tips on how you can get cheaper or more feature-packed car insurance by switching. Photo: Getty
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Many people “set and forget” their car insurance, leaving it to auto renew.

Insurance companies hope you do just that without shopping around first.

According to Roy Morgan Research (2018), 2.5 million of us – or one in five – Australian car owners switched their car insurance to a different provider or shopped around before renewing.

This shows that more than 400,000 people in the past four years decided they can get a better deal by switching their car insurance.

We’ve teamed up with Savvy Finance, Australia’s leading vehicle finance brokerage institution, to come up with tips on how you can get cheaper or more feature-packed car insurance by switching – or telling your current insurer you’re thinking of jumping ship.

Your premiums won’t budge

For many people, the No.1 reason to switch car insurance is that their premiums are at the same level despite their car’s agreed or market value dropping year on year.

This is one reason to switch providers.

Be wary of online comparison engines, as they can often skew results to fill quotas and push policies you don’t need over the phone.

Do your homework or talk to an insurance broker – brokers have the advantage of holding many policies, which can force providers to take immediate action to avoid negative repercussions.

Loyalty is overrated

If you’ve had a clean record and a Rating 1 forever, you must think ‘Surely I should be getting something in return?’ If you aren’t being rewarded through perks like a no-claim bonus or lower premiums, what’s your loyalty worth?

Sometimes the threat of switching can light a fire under them to offer a lower premium. Though it raises the question – why didn’t they offer you the discount in the first place?

Other providers may offer bundle discounts

Having your car insurance bundled up with home and contents or leisure vehicle insurance can often mean discounts in the form of multi-policy discounts. Some larger insurance providers offer such discounts; so, if you have different policies with different insurers, it’s worth looking at combining them under “one roof” – and one point of contact.

Change in circumstances means different coverage levels

Have you stopped driving to work? Has a driver under the age of 25 (finally) got a car of their own? Then it’s time to review your coverage level. Some insurers will reduce premiums for fewer kilometres travelled. Premiums can also be altered based on where you keep your car at night; additional drivers on the policy; and changes in agreed or market value.

Avoid fees – switch when you’re up for renewal

“Many insurance companies will charge cancellation fees when you switch midway through an annual policy,” says insurance expert and Savvy CEO Bill Tsouvalas.

“Do your homework before renewal is up and switch over to the new provider when the old policy expires. It can save you a bit of money.”

Can I save money if I change my policy after an accident?

Switching insurers after an accident, especially if you are at fault, won’t make an impact on your ratings or standing with insurers.

Insurers share information with one another, after all. However if you felt you got the short end of the stick or weren’t satisfied with their service, it’s more than enough reason to shop around for someone better.


For more information on car insurance, visit Savvy today.