Disclaimer: This information is general in nature only. While Budget Direct has endeavoured to ensure the information we’ve relied on is accurate and current, we do not guarantee it. Budget Direct accepts no liability for this information.

With an increasing number of motorists switching car insurance providers over the past two years, it’s more likely that we’re on the lookout for better deals than ever before. So with a little bit of time and the right information (from us), you’ll know whether you’re ready to make the switch to a new car insurance provider.

How to Switch Car Insurance

With some insurers offering better deals to new customers rather than their existing ones, it does pay to shop around. Here’s how you can switch car insurance.

Decide Whether Switching Now is Your Best Option

Your best option (if you are looking to switch) would be around renewal time. Before renewing you’ll be presented with your insurer’s annual offer and your new premium. There may be other reasons you may wish to switch prior to renewal. These include:

  • You’re moving to a new city, state, or postcode – If you’re moving this may impact your insurance premium and a different provider may have more competitive rates in your new area.
  • You’re adding a driver or car – If you’re looking to add a new family member to your car insurance policy some insurers may offer a discount when you restrict your policy to drivers over a certain age.
  • You’ve experienced a life event – Life events like buying a house, or starting a new job can impact your premium as well as your circumstances, which can mean that it’s a good time to switch insurers.

Compare Your Current Policy to the New Car Insurance Policy

Before switching insurers, make sure that you understand what you’re purchasing by comparing products with the same or similar levels of protection.

When comparing policies you should consider:

  • Checking the policy limits – how the coverage limits differ based on who is listed on your policy and whether you’ve chosen to restrict your policy to drivers above a certain age.
  • Looking for exclusions – most car insurers don’t offer a reduced window-glass excess as standard cover and may have some exclusions in place such as not insuring Uber or Taxi drivers.
  • Comparing excesses – increasing the excess could save money on your upfront premium, however you would also need to be prepared to pay the higher excess in the event of a claim.

Comparing policies will not only help you to save on car insurance but can also improve your car insurance cover by increasing limits on benefits like personal effects, replacement of keys, emergency transport and accommodation.

This is also the best time to review your policy and check whether your circumstances are still the same, or if they need to be updated.

Buy the New Policy

Once you’re covered by Budget Direct we’ll notify you in writing, then you’ll need to contact your previous insurer to let them know that you wish to cancel your cover. And if you want to switch before your current policy ends, make sure your new policy takes effect and you cancel your old policy on that same date.

Keep in mind that your current insurer may charge an early cancellation fee if the current policy is cancelled mid-term.

If you’re a new customer with Budget Direct you can get a discount on your first year’s premium for a new policy purchased online. To qualify for our 15%^ discount on a new Car Insurance policy you must start your car insurance quote online.

Notify Your Current Insurer

Once you’re covered by us (we’ll notify you in writing), make sure to contact your previous insurer to decline their renewal offer or cancel your other policy before it ends. Remember  your previous insurer may also charge you an early cancellation fee but, if you decline the renewal offer instead of cancelling mid-term,  you’ll avoid incurring any cancellation fee that would have applied.

Staying or Switching with Budget Direct

Budget Direct offers Outstanding Value Car Insurance, that you can tailor (including a guarantee on all authorised car repairs while you own the vehicle) to suit your circumstances. 

Not to mention the amount you could save on your premium by switching to Budget Direct could far outweigh your current insurer’s cancellation fee. 

Are you ready to switch to Budget Direct? Get a quote today!


How do I switch car insurance over to a new car?

We can guide you through the process of switching your insurance from your old car to your new one. Give us a call and let us know about the year, make and model so that we can help you transfer your Budget Direct Car Insurance over to your new car.

Will I lose my no claims bonus?

If you switch to Budget Direct, then you can transfer your no-claim bonus (also known as a no-claim discount) or your driver rating from the previous car insurer to us. All you need to do is provide proof, like a renewal notice from your previous insurer that shows you are the regular driver, and your car has been insured within the last 12 months. We’ll then factor in the rating when we calculate your premium.

Do you get a refund when you cancel car insurance?

If you cancel your policy during the cooling-off period (the timeframe varies with different insurers) you’ll receive a full refund of your premium payments as long as you haven’t made any claims. If you cancel your policy after the cooling-off period then you’ll generally be refunded a pro-rata amount (any unused portion of your premium) unless a total loss claim has been made. You may also be charged a cancellation fee.