Can car insurance be cancelled?

Yes – you can cancel your Budget Direct car insurance policy, without notice, at any time.

How do I cancel my car insurance?

To cancel your car insurance policy, simply call us on 1300 306 560 and we’ll help you.

Does car insurance have a cooling-off period?

Yes – all Budget Direct car insurance policies have a cooling-off period; it starts the moment you buy the policy and lasts for 21 days.  

If you change your mind within that time, you can cancel your policy and – if you haven’t made a claim – get all your money back. We will not refund any amount of $1 or less.

If I cancel my car insurance, will I have to pay a fee?

It depends on the circumstances.

You will not have to pay a cancellation fee if you:

  • cancel your policy within 21 days of the policy being issued or renewed – the cooling off period – and have not made any claims, or
  • decline our annual offer to renew your policy.

Otherwise, you’ll have to pay an ‘early cancellation’ fee of $40.

Can I cancel my car insurance policy and get a refund?

If you cancel your policy within 21 days of buying it – the cooling-off period – you’ll receive a full refund of your premium payments (as long as you have not made any claims).

If you cancel after the cooling-off period, you’ll be refunded a pro rata amount, i.e. any unused portion of your premium (minus the ‘early cancellation’ fee and any government taxes and charges).

If you pay your premium by instalments (i.e. fortnightly or monthly), any premium still owing at the time of cancellation must be paid to us.

We will not refund any amount of $1 or less.

Must I cancel my insurance policy after selling my car?

It depends on whether or not you buy a replacement car.

If you’re selling your car and buying another one, you can quickly and easily transfer your Budget Direct car insurance to your new car.

If you do not intend to replace the car, you can cancel your insurance policy by calling us on 1300 306 560.

Can I cancel my car insurance policy after making a claim?

Yes – you can cancel your policy at any time.

Can Budget Direct cancel my car insurance policy?

If you don’t observe the conditions of your cover, we may cancel your policy (only when it is permitted by law).

This is usually when you don’t perform your obligations under the agreement, such as providing us with true and complete information regarding the car, drivers, use of the car, ownership, the place where its normally kept, and any incidents involving the car which may lead to claims under this policy.

If we cancel your policy due to your failure to meet your obligations, you’ll be refunded either fully or a pro rata amount, i.e. any unused portion of your premium.

For more information, please read the product disclosure statement.

Can my policy be cancelled for non-payment?

Yes – if your fortnightly or monthly premium instalments are overdue by a month or more, we will cancel your policy.

If you don’t pay your premium when it’s due, we’ll send you a friendly reminder via SMS.

Note that if you’re temporarily short of funds, you can push back your payment date by up to 14 days by contacting us or logging into your online account and editing your policy.

Experiencing financial difficulty? Please contact us to discuss your options.

Can my policy be cancelled if I make a misrepresentation when answering the insurers questions?

Yes – We will ask you questions and your answers will help us decide whether to insure you, and on what terms. Each question we ask you is important.

You have a legal duty under the Insurance Contracts Act to take ‘reasonable care not to make a misrepresentation’ to us. This means you must answer all our questions fully, accurately, and honestly.

If you fail in your duty, we may, where permitted by law, cancel your policy. Or we may reduce the amount we pay you if you make a claim. Or we may do both of those things.

If your failure is fraudulent, we may refuse to pay a claim. And we may treat the policy as if it never existed.

How will the cancellation of my policy be confirmed?

Regardless of whether you cancel your car insurance policy or we do (only if permitted by law), we’ll send you written confirmation of the cancellation via email or post.

What do I do if my car insurance policy is cancelled?

Regardless of whether you cancel your policy or we do (only if permitted by law), if you intend to continue driving the car in question, you should consider getting it insured by another provider immediately.

You can get your search for another insurer underway by using the Insurance Council of Australia’s Find an Insurer website.

Can my cancelled car insurance policy be reinstated?

It will depend on the circumstances behind the cancellation of your policy and the amount of time that has passed since it was cancelled.

If your cancelled policy cannot be reinstated, you may still be able to buy a new policy from Budget Direct.

For more information, please contact us.

How do I switch car insurers?

Switching car insurers is a lot quicker and easier than you might think – just follow these steps.

  1. Research – compare different insurers’ products and get quotes.
  2. Buy – if you get a quote and buy a Budget Direct comprehensive or third party policy online, you’ll save 15%.
  3. Contact – once you’re covered by us, contact your previous insurer to decline their renewal offer or cancel your other policy mid-term.

If you cancel mid-term, your previous insurer may refund the unused portion of your premium; however, they may charge you a cancellation fee.

Get a car insurance quote online