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KEY POINTS
- Before renewing your car insurance, verify that all personal and vehicle details are accurate to ensure your coverage remains valid and to prevent potential claim denials.
- Use your renewal notice as an opportunity to compare different policies, as premiums can increase over time—and switching providers may offer better value.
- If you choose not to renew your policy, ensure you have at least Compulsory Third Party (CTP) insurance, as it is required by law in Australia.
Your car insurance premium is based on a number of factors that are likely to change over time. Each insurance provider will calculate your premium in its own way, so before you accept a car insurance auto renewal from your insurer, it might be worth comparing what others are offering.
You may be eligible for a discount or deal from a new provider, which could either save you money if you switch, or give you leverage to negotiate a better deal with your current insurer.
When do I get my car insurance renewal?
Most car insurance policies are taken out for a 12-month period. You should usually get at least 14 days’ notice that your insurance policy is about to expire and is up for renewal.
What will be included in my car insurance renewal notice?
Your car insurance renewal notice should include:
- details of the type of cover being offered;
- the renewal date and period of cover;
- any exclusions or limitations; the excess, and;
- the new premium.
Your renewal should also include details of your car’s insured value. This figure may reduce as your car depreciates as it ages, so it’s important to check you’re happy with the figure quoted.
What should I do before renewing my car insurance?
Before renewing your car insurance, you will need to make sure that all details on the policy are correct. Canstar Research has crunched the numbers to show how the average comprehensive car insurance premium can change as you get older.
If anything has changed about you or your car, you should tell your provider (ideally at the time of the change), as this may affect the renewal premium. For example, have you made any modifications to your car, or moved to a new address? If you don’t tell your provider about any changes, your future claims could be denied.
You might want to consider comparing and changing the level of cover you have.
How do I renew my car insurance?
Once you’ve received your car insurance renewal letter, it’s time to consider if you’re happy with your car insurance premium and level of cover. This can be a good opportunity to compare the renewal offer to what other providers are offering, to see if you can get a better deal.
If you’ve previously set up a car insurance auto renewal, you may want to act before the next payment comes due. If you’ve set up a direct debit, you may pay money you don’t need to. And if you don’t pay for your old policy, the insurer could choose to cancel your policy, which could make it more difficult and expensive to get a policy from another insurer. .
When considering any new insurer, it’s important to check out the Product Disclosure Statement (PDS) and Target Market Determination (TMD) to see what’s included in any policy. Not all car insurance policies are the same. You might also consider calling your current insurer to see if you can negotiate a better deal. If you do decide to move to another insurance provider, you should tell your old provider as soon as you can, before the renewal date.
Read more: How to change car insurance – making the switch
What happens if I don’t renew my car insurance?
If you don’t renew your car insurance, you may find yourself without any extra cover for your car when you need it. If you normally pay manually for your car insurance premium, then your provider may offer you a grace period (typically up to 28 days) where you are still covered if you don’t meet the renewal deadline.
You should have some compulsory third party (CTP) as part of your car registration. But that only provides protection against claims for financial compensation if you injure or kill someone in a motor vehicle accident.
Read more: Different types of car insurance explained
CTP insurance doesn’t provide cover against the cost of repairs to any vehicles or property, so if you want that extra protection then you need to find a policy that suits your needs and act before the renewal date.
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Can an insurer decide not to renew a car insurance policy?
It is possible for an insurer to choose not to renew your car insurance policy, such as if your circumstances significantly change, you don’t pay your premiums, or you void your policy in some other way.
In some cases, an insurer could choose to cancel your insurance mid-policy, in which case they will send you at least two weeks advance notice of the cancellation. In other cases, they may let your policy run its course until the end of its term, after which it may choose to no longer insure you by not offering you the option to renew.
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