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How to switch car insurance

Car insurance is one of the unavoidable expenses when it comes to owning and operating your own set of wheels. 

If your circumstance change and you need to advise your car insurer about any changes, then your premium may change.  This may provide you with an opportunity to shop around for the best deal, based on your new risk information. 

Switching car insurance

The renewal date of your car insurance is something you probably have written down, because the last thing you want is to be on the road without insurance. However, deciding whether to switch or stay with your current insurer is extremely important, and shouldn’t be done on a whim. 

It’s always worth looking around before your renewal date to see if there’s something cheaper elsewhere. As soon as you get your car insurance renewal details from your existing insurer, take the opportunity to look around and see what other insurers can do for you. 

Cancelling car insurance after making a claim

You can always cancel your insurance, even if you’ve made a claim on the policy, but you will have to pay the full policy price and are unlikely to receive a premium refund. 

If you’ve paid for your insurance cover upfront, this means you won’t receive a refund and, if you pay monthly, you’ll have to pay for the remaining months in one go in order to cancel.[1] 

Six steps to switch your car insurance

Step 1: Shop around

See what other providers could offer. If you find a good deal, investigate further. 

Step 2: Speak to your existing provider

They might be willing to offer you a lower premium to retain your business. 

Step 3: Clue-up on the T&Cs

If you’re cancelling during your policy term, there could be charges involved. Weigh up whether these charges make a move worth it, and consider if it might save you more in the long run to wait a little while. 

Step 4: Get your new coverage sorted on time

If you do decide to make the move, make sure your cover starts on the very day your existing one expires to ensure there is no gap in cover. Wait until you have this in writing before you make any further steps, as a lapse in coverage can cause you problems. 

Step 5: Cancel your existing policy

Once you’re sure you have a new policy in place, based on the correct information, you can formally cancel your old policy. Ask for written confirmation that your policy is cancelled, with the date the policy expires stated. You need to fulfil your financial obligations as stipulated in the contract until that date. 

Step 6: Be sensible

Once your new policy starts, please drive carefully. Getting a speeding ticket or being involved in an at-fault accident could impact your future insurance costs. 

If you’re looking for a new car insurance provider, get a quote from Rias today >