Vehicle owners carefully compare car insurance quotes in NSW. Despite making many inquiries and purchasing the most affordable policy, there may still come a time when you think twice about the car insurance NSW that you bought earlier. The simplest of the reasons can be a better policy has arrived in the market that may offer your vehicle finer coverage or the same coverage at a lower premium than the one you have already. Or, a new insurer on the block may be ready to offer superior services compared to your current car insurer.
Whatever the reason may be, if you decide on cancelling your policy, all you need to do is get in touch with your insurer and share your need for policy cancellation. While the cancellation process is pretty straightforward, sometimes an insurer may offer you additional discounts or benefits to retain business. After that, the ball is in your court regarding whether or not to continue with the policy. No insurer can refuse cancellation if a policyholder wants to unless there is a claim or a legal situation in play. Two common questions surrounding policy cancellation are discussed here.
When is the right time to cancel my car insurance?
- And the answer to this question is you may cancel your vehicle insurance policy whenever you require it. Your current policy may stay applicable for the remaining month or year in which you cancel, based on the policy terms, or you may be able to get a refund of any unused premium.
- On the flip side, if you owe any premium to the insurance company, you may need to clear the dues before cancellation (or agree to pay them back post-cancellation). Again, glancing at the policy disclosure statements helps in understanding how the entire process unfolds.
- Some insurers may not charge you a cancellation fee when cancelling a policy in the 14-day cooling-off period from buying/renewing a policy. They may also partially or fully refund your premiums if you haven’t claimed in the fourteen days.
- Also, you can’t cancel the mandatory compulsory third party (CTP) insurance purchased at the time of vehicle registration unless you first buy a new policy. Here, you may also need to update your new insurer’s details on your vehicle registration papers.
What about my car insurance if I sell my car?
- Only a CTP policy can be transferred to a new vehicle owner when you sell a car – no other type of car insurance can be. CTP is linked to the vehicle, not the owner, However, you may need to inquire about exactly how it may be transferred to a new vehicle owner and inform your insurance provider about your plan to sell your car in advance.
- If you buy a car as you sell your previous one, you can ask the insurer to change the car details on the policy. You can update the vehicle details on your old policy if you purchase a new car, but the premium may rise – or fall – depending on the type of car (age, safety rating, KMs travelled, etc). The key takeaway here is you can’t change the policyholder.
If you choose to cancel your comprehensive car insurance policy anytime apart from the cooling-off period, i.e., midway through a policy, you may have to bear an additional fee that may comprise cancellation and/or any administration charges. However, car insurance NSW providers may reimburse your unused premium from between the cancellation to renewal period, so you may have little to lose in cancelling your vehicle insurance policy online.