Did you know that insurance as a concept dates as far back as 1347? And that the first type of insurance offered was for maritime vessels embarking on exploration and trade journeys?
Although it may seem scary and complicated, insurance is actually a pretty fascinating idea, and the insurance industry today is worth serious amounts of money. Insurance is a necessary product for billions of people worldwide, whether they’re securing insurance for their home and its contents, a prized collection of collectables, or other valuable items.
And motor insurance is definitely a worthwhile investment, particularly if you own a high-value vehicle or have recently just purchased your first brand new car. For many, a car is the second-biggest purchase they will make in life – only second to real estate. And some people choose to switch insurance providers for a variety of reasons. So, why should you start gathering up some car insurance quotes? This informative article will shed some light on the process of switching car insurance providers and ultimately help you decide if switching is the right move for you.
The Best Time to Switch Car Insurance
The best time to shop around for car insurance quotes is when your existing provider is renewing your policy. This annual occurrence is also aptly referred to as your ‘renewal period’.
During this period, you can expect your provider to get in touch with you in order to communicate the new cost of your annual or monthly premiums. In many cases, this will mean an increase in the cost of your insurance, which is what makes this time the best moment to see if another insurance provider can offer you a better deal.
Keep in mind too, that insurance providers want you to switch and as such, some of them will try their best to offer special deals for new members. For instance, some companies will provide discounts on their policies if you sign up online. With that, we recommend shopping around so that you can see what new member deals are available to you. You can do this by calling different insurance providers or even using an insurance comparison website that will provide a list of quotes depending on the make and model of your car and your driving history.
You could save a decent amount of money this way, so it’s worth comparing your options at least once a year during your renewal period.
How Do I Change Insurance Providers?
Next, you may be wondering just how you can go about changing your car insurance policy. As we mentioned above, you can use an insurance comparison tool to quickly compare quotes and offers from different insurance providers. These tools will often allow you to directly purchase a policy through them, as they get incentives from insurers when people sign up using their websites.
Another way is to directly contact an insurance company and secure their support with your policy switch over. You can call up and get a quote over the phone, and the customer service agent from your selected provider can take your details and set up direct debit payments on the spot if you’re happy with the quote provided.
Or you can visit their website and fill in a web form that’ll likely ask for more details on your car, your driving history and other relevant information in order to generate an accurate quote for you. Then, when you have the time, you can follow up on this quote (which will be sent to you via email) and finalise your new policy when it is convenient for you.
Why Switch Car Insurance?
We’ve discussed the best time to change insurance providers, and how you can go about it. But what about the reasons why you may want to change your vehicle insurance company? There are a few of these, so let’s explore them now.
To Save Money
The most obvious reason you’d decide to switch car insurance providers is simply so you can save money. Car insurance premiums can be expensive, as can ownership. Premiums will also vary wildly depending on various factors, such as the age of your car, your claim history, where the car is parked at night, the car theft rate of your suburb, and what level of excess you choose.
For instance, a comprehensive car insurance policy could be $100 a month or $320 a month. This is usually amended each year when your policy is up for review. So by shopping around for a new policy, you can save hundreds of dollars a year if you switch providers at the right time.
To Choose a Better Service or More Options
Not all car insurance companies are equal. Some offer a budget service with minimal extras. For instance, some providers won’t offer a hire car to keep you moving if you’ve had an accident or won’t insure your car for an agreed value. The ‘agreed value’ is what you and your insurance company agree your car is worth rather than having it set at market value. Market value means they will pay to replace your car based on its current market worth, taking into account the odometer reading and condition of the car.
If you’re currently with a budget insurer, you may want to upgrade your policy to gain benefits like a hire car, windshield repair, roadside assistance and the option to insure your car for an agreed value rather than a lower market value.
To Downgrade Your Policy
On the other hand, you can downgrade your insurance for several reasons. Perhaps you’ve suffered a loss of income and can no longer afford a premium policy. Or, your car might be getting old, and a premium policy is no longer worth the money. For instance, you may be better off with a third-party policy if your car is worth under $5000, as the cost of comprehensive insurance could be put towards savings for a newer model.
If you feel that you’re paying too much for your car insurance and aren’t seeing value on that expense, then downsizing from a comprehensive policy to a third party fire and theft policy could be the right move for you. Just be sure to discuss your options with your current insurance provider and any other providers that you may be interested in, as their expert insights could help swap you in the right direction with regards to downsizing on your motor insurance.
Benefits of Staying With Your Insurer
Instead of changing insurance companies, you may even opt to stay with your current provider. And truth be told, there can also be benefits to staying with the same insurer each year. For instance, some premium insurers offer years of membership discounts for loyal customers. For instance, you could get a 5% discount for five years of membership or a 10% discount for ten years. And if you get a quote from another insurance company, your existing insurer may sometimes offer you a better deal if you inform them that you are considering a switch.
Some may also offer multi-policy discounts, offering 10% off all policies if you insure your home, contents and vehicles with the same provider. It’s worth investigating offers like this when considering a switch between insurance providers.
As you can see, you can save money by selecting an insurance policy that better meets your needs, or initiating negotiations with your current insurance provider at the right time. And even though this article has outlined the process of switching between car insurance companies, it’s still worth keeping in mind that there can be benefits to sticking with your current provider. So weigh up all your options and don’t be afraid to ask questions that’ll help you make the right move.
