Key takeaways
- Renewal is the easiest time to switch, but you can leave mid-policy if the savings justify any exit fee.
- Never cancel your old policy until the new one is confirmed in writing.
- Your no-claim discount usually transfers — keep a claims history letter from your previous insurer.
Switching car insurance is straightforward when you time it right and avoid gaps in cover. Most Australian drivers can save hundreds of dollars a year by comparing at renewal — and many can switch mid-policy if the maths works out.
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When is the best time to switch?
Renewal is the natural comparison point — your insurer must notify you of premium changes, giving you a clear window to shop around. You can also switch mid-policy: if a new policy saves $500 a year and cancellation costs $50, switching usually makes sense. Check whether your insurer refunds unused premium on a pro-rata basis or applies a short-rate penalty.
Five steps to switch without gaps
Switching checklist
- 1Get quotes with identical vehicle details, excess, value type, and optional covers
- 2Confirm the start date and time of the new policy — most activate from midnight on the nominated day
- 3Request written confirmation (policy schedule or certificate) from the new insurer
- 4Notify your current insurer of the cancellation date in writing and request any refund owed
- 5Keep both policy documents until the switch is complete and any open claims are resolved
No-claim discount and claims history
Most insurers recognise a clean claims history from any Australian insurer. You will be asked how many consecutive claim-free years you have had and may need a certificate of currency or claims history letter. If you have an open claim, it stays with the insurer that was on risk when the incident occurred — the new policy only covers future events.
Cooling-off period and refunds
Most insurers offer a cooling-off period on new policies (often around 21 days) if you have not made a claim — terms vary by insurer, channel, and whether it is a new policy or renewal with the same insurer. For mid-policy cancellations, most direct insurers refund the unused portion pro-rata, but check your PDS for flat cancellation fees.
Important
General information only — not personal financial advice. Consider your own circumstances and read the Product Disclosure Statement (PDS) before purchasing any policy. Moneyhero may earn referral fees from some providers when you switch through us; this does not change how results are ordered. How we compare
Frequently asked questions
Switching questions answered — timing, refunds, and what to do with a current claim.
Does my no-claim discount transfer when I switch insurers?
Most Australian insurers recognise a no-claim history from any other insurer. You will be asked how many consecutive claim-free years you have had and may need a claims history letter or certificate from your previous insurer to verify it.
What happens to my premium refund when I cancel mid-policy?
Most direct insurers refund the unused portion on a pro-rata basis. Some older or packaged policies use a short-rate calculation that deducts a penalty. Check your current policy's cancellation clause or call the insurer for the exact figure before you switch.
Can I switch if I have a pending claim?
Yes — you can take out a new policy at any time, but the outstanding claim is handled by the insurer that was active when the incident occurred. The new policy covers events from its start date only.
Is there a cooling-off period after I take out a new car insurance policy?
Most Australian insurers offer a cooling-off period (typically 21 days) if you have not made a claim. During this window you can cancel for a full refund. Check the new insurer's PDS for the exact terms.