How to switch your insurance: a step-by-step guide

Thinking about switching your insurer? It may be easier than you think. Here’s a breakdown of key steps in the process so you can feel confident in making the switch.

Reviewing your current cover

It’s a good idea to regularly review your insurance cover to check it’s still right for you. Here are a few things you may want to consider:

• Your policy: does the cover still meet your needs? What benefits are included and which ones can you add on? Consider reading your policy document carefully to understand what you’re covered for and what’s excluded.

• The cost: how does the cost of your insurance compare to other providers? While cost is something to consider when reviewing your insurance, a cheaper premium doesn't always mean better value. Take a close look at what’s included in the policy — does it cover the things you care about? It's also worth checking what discounts are available to you and how they compare with other insurers.

• Your current insurer: are you receiving a good service from your current provider? Do they respond to you in a timely manner? Can you get in touch with them in the way that suits you? Don’t wait until you need to make a claim to find out.

When can you switch insurance providers?

Your insurance policy is usually a 12-month contract, but that doesn’t mean you can’t cancel and switch mid term. If you do and you've paid for your policy up front, you'll typically be refunded the unused portion of your premium. There may be an outstanding amount still left to pay If you’ve been paying for your policy by direct debit instalments.

If your policy is a 12-month contract, you can wait until your policy is up for renewal, that is, at the end of the 12 months. You can then let your current policy lapse and start a new policy with another provider.

Generally, you’ll be able to ask for your policy to be cancelled on a specific date. With your new provider, you’ll be able to nominate a specific start date for your new policy. It’s generally a good idea to have the two dates aligned so that you don’t have any gaps in your cover.

How to switch insurance in three steps

Switching can usually be completed in three steps:

• Step 1: buy a new policy with your provider of choice.

• Step 2: cancel your current policy mid term or by letting it lapse once your contract is up for renewal.

• Step 3: set the new policy to start on the day your old policy comes to an end.

What information you'll need to switch

If you’re switching to AA Insurance, the information you need to switch is the same as you’d need to take out a quote. It varies depending on what you’re looking to insure.

Taking out a quote typically takes a few minutes. You’ll be asked to provide general information about yourself and some more specific information about the asset you’re insuring.

For home, car and contents insurance, you’ll be asked for:

• Your date of birth

• Your insurance history

• Your AA membership number if you’re an AA Member

• Your address

For car insurance you’ll be asked about:

• Your car, including:

  • your registration number

  • where you park your car overnight

  • does your car have aftermarket accessories or modifications?

  • do you use it for private or businesses purposes

  • do you have any finance owing on the car

• The drivers, including:

  • the gender of the main driver

  • do you want to add any additional drivers?

• Your driving history, including whether you have made any claims on your insurance, had any policy suspensions or cancellations, and any disqualifications or restrictions placed on your licence over the last 3 years.

You’ll then be invited to choose from our three levels of cover and given the option to add benefits like Excess-free glass cover and Rental car cover to your policy. You’ll also be able to adjust your excess and your agreed value.

For home insurance, you’ll be asked about:

• The construction material of the house, the year it was built and whether it’s watertight, structurally sound and well maintained.

• Whether the home or land has suffered damage or is at risk from natural hazards or flooding, if any structural or remediation work is needed, and whether it has been completed.

• The layout, for example whether it has any outbuildings or other features, the number of levels, the number of covered car spaces.

• The size of the house (in square metres).

• The property’s sum insured, which should reflect the cost to rebuild the house. Please note, sum insured does not refer to the market value of your property or how much you paid for your house.

• Your claims history, including claims, losses or damages made by yourself, or anyone covered by your new policy in the last three years.

• Any current security systems installed at the property.

For contents insurance, you’ll be asked to provide:

• information about the home you live in, such as:

  • the type of building

  • your living situation

  • does it have any security features?

• information about your belongings, including:

  • the total value of your contents (sum insured)

  • you’ll be given the option to increase the adjustable event limits for specific categories of items.

• Your claims history

You’ll have the option to add benefits to your policy, such as Excess-free hearing aid cover $100 excess on eyewear. You’ll also be able to adjust your excess and your sum insured.

Other things to note

It's important to note that most insurers won't cover you for any pre-existing damage. Pre-existing damage might be damage caused by an event that happened before your policy started. Be sure to look closely at the insurance policy wording so you understand what’s included and what’s excluded.