Changed your mind after taking out a new car insurance policy? Learn about the cooling-off period with Savvy’s useful guide.
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When it comes to car insurance, it's not always possible to know exactly what you’re getting before you take out your plan. Fortunately, car insurance policies in Australia come with a cooling-off period in case you change your mind.
In this handy guide, we delve into the concept of the cooling-off period, examining what it is, why it is important and what to do when it ends.
The car insurance cooling-off period is the period just after you buy an insurance policy, usually between 14 and 30 days after purchasing your plan. This grace period applies regardless of the type of policy you have taken out, whether it’s third party or comprehensive coverage. During this time, your car is fully covered, but you have the option to change your mind and cancel the policy without penalties or charges. If you do cancel during this period and haven't made a claim, you’ll usually get a full refund of your premium. However, it’s important to read your policy documents carefully to understand the specific terms and conditions of your car insurance contract, as details may vary from provider to provider.
The cooling-off period provides a safety net for car owners, allowing them to test out the policy and make changes or switch car insurance if necessary to ensure they have the coverage they need. It also offers:
If you become unhappy with your policy after the cooling-off period, you are entitled to cancel it at any time. However, you may face cancellation fees or other costs if you decide to switch or cancel the policy mid-term, though you may be eligible for a refund of the unused portion of your premium.
Alternatively, you might have the opportunity to make changes to your existing plan during the policy term, such as adjusting the coverage level or excess amount, depending on the policy terms.
You can also start looking for other car insurance options as the renewal date approaches. Take this time to compare different insurance providers, coverage options and prices. If you find a better policy that fits your needs, you can switch to the new provider when your current policy expires without facing any penalties or fees.
Whether you are cancelling your car policy during the cooling-off period or at a later date, it’s essential to have car insurance coverage in place if you are going to be driving in Australia. You can compare and switch car insurance policies with Savvy to ensure there are no coverage gaps and you stay protected on the road.
Disclaimer:
Savvy (ABN 78 660 493 194, ACR 541 339) provides readers with a variety of car insurance policies to compare. Savvy earns a commission from our partnered insurers each time a customer buys a car insurance policy via our website. All purchases are conducted via our partners’ websites. The integrity of our comparison service is unaffected by our partnerships with those businesses and our effort remains to bring further brands that do not already use our comparison service onboard.
Savvy’s comparison service includes selected products from a panel of trusted insurers and does not compare all products in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy. We always recommend readers to consult the Product Disclosure Statement (PDS) of different policies before purchasing your car insurance.
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ABN 78 660 493 194. ACR Number 541 339.
