New car owners in NSW mainly consider buying an additional vehicle insurance policy because the mandatory CTP neither covers third-party vehicles and property damage nor loss to their cars during accidents, theft, or extreme weather events. At the same time, driving scenarios on the road can be highly unpredictable and possibly have serious financial implications, which is why car owners may need a financial backup in terms of a vehicle insurance policy.
Just like CTP, car insurance NSW will likely increase every year due to various reasons like inflation, changing business situations, dealing with new risks, etc. And it is precisely why vehicle owners may look for cheap car insurance alternatives year after year.
Therefore, apart from first-time buyers, vehicle owners with car insurance policies may contemplate switching to insurers offering better benefits at reasonable prices or more or less the same benefits as their previous policy at comparatively lower premiums.
If you are a car owner thinking of swapping your vehicle insurance policy, we guide you through four easy steps to accomplish that task.
Step 1:
Ask yourself – Do I need to swap my car insurance policy now?
Reflect on why you are considering swapping your policy, so you know how to make the most of your options.
- Are you moving to a new residential area or city, or state? If yes, your insurer may revise your vehicle insurance premium once you move in.
- Do you want to list new drivers on your policy? In that case, restricting drivers over a specific age may fetch you a potentially lower quote.
- Do you need to drive less/more in the coming months? If you are sure about your driving frequency, check for pay-as-you-drive policies as you compare a range of cover options.
Swapping your car insurance policy may make sense when your living or driving circumstances change. So, you can buy a policy that suits your current needs and vehicle usage.
Know that if you decide to swap your policy after the cool-off period and before the renewal date, your insurer can minus the cancellation fee, administration, and associated government charges from the unused premiums and refund the rest.
Step 2:
Don’t make a hasty decision; take your time to shop around before signing up for a new policy. Thoroughly research online, request quotes, and compare insurance products across insurers. You may check the below-mentioned factors to determine the worthiness of a policy, all the while keeping your needs in mind.
Policy inclusions, exclusions, driver limitations, excesses, discounts, and optional extras, are some aspects of a vehicle insurance policy you can’t miss looking into. Review your current policy and check how the new policy can give you an added edge over it.
Step 3:
Once you have decided to swap, talk to your current insurer about policy cancellation and follow your insurer’s directions to complete the process. Ensure you have an active insurance policy with a new insurer before your current policy ends to avoid lapses in your vehicle’s cover.
Step 4:
Many insurers offer discounts for first-time shoppers, online shopping, and annual premium payments. Check if your new insurance provider has such benefits on offer before you sign up to make some savings.
All it takes is investing some time in researching better deals and seeking and providing the correct information to insurers to make optimal use of cheap car insurance plans. Also, read the fine print in the product’s policy disclosure statements before purchasing car insurance in NSW to know the benefits you are paying for.
