Switching insurance when buying a new car in Melbourne

Can I change my insurance policy at any time?

Yes, Australian drivers have the flexibility to change car insurance policies whenever needed. You’re not locked into one provider for the full term unless there’s a specific fixed agreement in place. Most policies also come with a cooling-off period (usually 14 days). During this time, you can review your product disclosure statement and cancel the policy without penalty if it doesn’t suit your needs.

However, timing matters. Cancelling mid-policy might still entitle you to a pro-rata refund on any unused premium, depending on your insurer’s rules and the period of insurance remaining, but you’ll want to read your insurer’s terms to check for any cancellation fees. More importantly, make sure your new comprehensive insurance is in place before the old one ends. Even a 24-hour lapse in coverage could leave you unprotected in the event of an accident or claim. It’s also a good idea to confirm how any refund will apply to the insurance portion of the premium you’ve already paid.

Switching early can also be worthwhile if your current policy no longer meets your needs, for example, if you’ve bought a new car, changed how you use your vehicle, or want different coverage options. And if upgrading means parting with your old vehicle, professional car buyers can help you sell quickly and securely, saving you the hassle of private listings.

How to switch insurance when buying a new car

If you’re buying a new car, switching insurers is often a smart move, especially if your current provider doesn’t offer the best deal, the right coverage, or choice of repairer.

Here’s what to do:

1. Get quotes and compare policies. Look for a policy that fits the car’s value, how you’ll drive your car, where you’ll park your car, and whether you're financing it as a car with a loan. These details can affect how insurers price the cost of car insurance for your situation and what extras matter to you, such as windscreen protection, roadside assistance, or comprehensive car insurance options. A clear car insurance quote will show how different inclusions impact your insurance premium and overall cost of car ownership.
2. Line up your new policy. Your new cover should start the day you take ownership of the vehicle — not before, not after.
3. Cancel your old policy. Once your new policy is active, contact your previous insurer to cancel and request your certificate of insurance and any refund on unused car insurance premiums. You may be entitled to a partial refund.
4. Update VicRoads or relevant bodies. If you’ve transferred ownership, updated your address, or changed usage (e.g. personal to business), make sure your details are current.

Switching insurance when buying a new car in Melbourne also means considering local risk factors, such as theft rates, accident frequency, and how your car will be parked. To find help nearby, use Sheen’s locations directory to find your closest service centre.

[nearest_workshop][/nearest_workshop]

Changing your car insurance policy after an accident in Melbourne

Having an accident can be a wake-up call when it comes to your insurance. You might realise your current policy didn’t provide enough support, or that you didn’t have the flexibility you expected, especially when it comes to things like repairer choice or agreed value.

When should you switch?

You can technically switch at any time, even after an accident. But the best time to change providers is once your claim has been finalised. Switching mid-claim can complicate things and lead to delays, particularly if there’s any dispute over liability or coverage.

What to consider before switching

If you’ve made a claim recently:

• Be aware that other insurers may charge more based on your updated risk profile and how your insurance product compares to their general insurance underwriting criteria.
• Some insurers will ask for details of your past claims or even deny cover if a claim is ongoing.
• You might not get the full benefits of a new policy until the current claim is resolved.

Still, if your experience with your insurer was frustrating, costly, or slow, switching may be well worth it. Look for a provider with strong reviews, a better service track record, and features like choice of repairer to give you more control the next time around.

Reasons to switch car insurance

Every driver’s situation is different, but common reasons to switch include:

• Your current provider doesn’t offer choice of repairer, and you want to choose who fixes your vehicle.
• You want an agreed value instead of market value.
• You’ve added a new driver or vehicle and need better flexibility.
• Your renewal premium increased significantly without explanation, or you’re unhappy with your current level of cover.
• You’ve found a better deal with another insurer.

Even small savings add up. Just make sure you’re not sacrificing important policy features in the process.

Smart tips for changing car insurance

Before switching providers, keep these tips in mind:

• Compare carefully. Look beyond price and check the level of cover, type of insurance, and whether the insurer offers third party property damage cover. These different types of car insurance come with varying benefits and limitations.
• Don’t cancel early. Wait until your new policy is live so you’re never left uninsured.
• Review your vehicle value. Consider whether your car should be insured for agreed value.
• Check for cancellation fees. These may apply mid-policy and can eat into any savings.
• Understand how switching after a claim affects you. If you’ve made a recent claim, a new insurer may see you as a higher risk.

Using a comparison tool can help you review car insurance policies side-by-side, compare car insurance quotes from different providers, and evaluate how each one meets your insurance coverage needs and vehicle type. Choosing car insurance is easier when you understand the differences in policy terms, features, and what they include for your current car.

What to look for in a new insurance policy

Not all car insurance policies are created equal, and what’s suitable for one driver might not be right for another. If you're considering switching insurers, here’s how to evaluate whether a new insurance product offers better car insurance cover and aligns with your driving habits, risk profile, and budget.

Choice of repairer

Make sure your policy lets you nominate who repairs your vehicle. Some insurers limit this, which can affect the quality and timing of your repairs, particularly if you're only covered for third party property and not your own vehicle. Ensuring you have the right coverage can make a real difference in these situations.

Agreed value vs market value

If your car is written off, agreed value means you know exactly what you'll be paid. It’s especially valuable for newer or customised vehicles.

Extras that matter

Some policies include add-ons like hire car cover, windscreen replacement, or key protection. Choose the extras that actually offer value for your lifestyle. Some providers even offer bundled car and home insurance for convenience, but be sure to review each home insurance policy carefully before committing.

Claims and service support

When something goes wrong, fast and fair support is essential, especially when you’re making an insurance claim for damage to your car. Look for insurers with accessible customer service, online claim tracking, and a strong local reputation. Reputable providers will also follow the General Insurance Code of Practice, which outlines the rights of car insurance customers and expectations for fair conduct.

The Insurance Council of Australia notes that car repairs are becoming more complex and expensive due to modern tech features like sensors, safety systems, and electric components. That makes it even more important to choose a policy with features like agreed value and trusted panel beaters and repair networks.

Switching to a new policy isn’t just about saving money; it’s about getting the support and coverage you actually need.

Should you bundle your car and home insurance?

If you’re shopping around for car insurance, you may have noticed that many insurers offer bundles that include both car and home insurance policies. While bundling can be convenient (and sometimes cheaper), it’s important to evaluate each policy on its own merits.

Bundled policies can offer a discount or reduce admin, but they can also limit your flexibility to change providers. If your home insurance policy isn’t offering good value, but your car insurance is, you might find yourself stuck.

Take time to compare each policy independently and make sure the car insurance portion provides adequate cover, fair premiums, and features like agreed value or choice of repairer.

Covering another person’s car or driving someone else’s vehicle

Some drivers mistakenly assume their car insurance policy will automatically cover them when driving another person’s car, or that a friend borrowing their vehicle is automatically protected.

This isn’t always the case.

In Australia, most policies only cover the insured vehicle and named drivers. If you plan to regularly drive someone else’s car, or lend your vehicle to someone, check whether your policy offers any flexibility for this. You may need to add additional drivers or take out extra cover depending on the insurer.

For occasional use (like borrowing a friend’s car) a comprehensive policy on that vehicle is the safest bet. Policies vary, so always check your insurance policy details and car insurance PDS to understand exactly what’s covered.

[sheen_usps][/sheen_usps]

Whatever car insurance you switch to, Sheen’s got you covered, too

We hope this guide’s given you a little clarity on how your choice of repairer works and why it matters. If you ever are in an accident (knock on wood), our insurance team can assist with making claims and will communicate with insurers on your behalf. We’ll even help you with car towing, and can sort you out with an accident replacement vehicle so you’re not stranded while we repair your car.

Contact Sheen or upload your smash to get expert advice today.