Just like streaming subscriptions and gym memberships, car insurance is one of those things that can be easy to “set and forget”.1 Maybe you got a great deal from your current insurer a few years back. Maybe you’re worried about losing your no-claim bonus – or perhaps you just haven’t found the time to sit down and compare.
If it’s been a while since you looked at your policy, there’s a chance it may no longer be a good fit for your lifestyle and needs – or even your hip pocket.1 And, while a Canstar report from June 2026 found that switching could save drivers up to 26% on their comprehensive car insurance, it also revealed that a quarter of insured drivers had actually shifted gear and changed providers within the past two years.2
So, before you let your policy auto-renew yet again, it might be a good idea to consider if changing car insurance could be the right move for you. Read on to discover some important things to know about why, when and how to change your car insurance provider.
Why do people change car insurance providers?
One person’s motivation for changing car insurance provider may be completely different to the next, but some common reasons for switching to new car insurance can include:3
- New sign-up discounts3
- A change in circumstances or driving habits3
- Wanting better service from an insurance provider
- Seeking better value for money or a better policy fit.3
“If you are working from home more, have moved houses, or want specific features like a guaranteed hire car when your own one goes in for repairs, then reviewing and comparing policies is often a prompt to make sure you’re paying for what you need, and not paying for things you don’t,” adds Sally Tindall, Data Insights Director at Canstar.
Canstar’s latest analysis found premiums had risen by 5% over the past year,2 adding further pressure to already stretched household budgets.
“Switching providers can often be an easy way to reset your expenses,” says Tindall.
Signs it might be time to consider changing car insurance
Let’s look into some of the above triggers in more detail now and how they might influence your choice of insurance provider.
You’ve bought a new car
Buying a new car can change your insurance needs straight away. The vehicle you choose may also affect the cost of cover, as insurers may take into account factors such as the car’s make, model, age, value and repair costs when calculating your car insurance premium.4 And because different insurers assess risk differently, premiums could vary quite a lot for the same car.5
So, whether you have upgraded to a brand new vehicle or are buying a used car, it could be a good idea to compare your options before changing car insurance to your new car, says Tindall.
You’ve moved house
Your address is another factor that may be used to calculate your car insurance premium as suburbs with higher rates of theft may attract higher premiums.4 So, if you’ve moved postcodes, it could be worth getting some quotes to see whether your premium or cover options have changed, says Tindall.
You’ve changed how you use your car
Life milestones, such as starting a new job or entering retirement, may be another cue to compare providers, as insurers may take into account how often you drive and what you use the car for when working out your premium.4
“For example, if you’re now predominantly working from home or have swapped the car for the bus for your daily commute, you could well be paying for kilometres you no longer drive,” shares Tindall.
Likewise, if another person is now driving the car regularly, that could affect whether your current policy still suits your needs. For example, if you have a new P-plater in the household, you may want to look for a policy that allows you to add them as a listed driver.
It’s been a while since you checked your policy
Even if there hasn’t been a major life change, reviewing your policy annually can help you make sure your insurance is still a good fit for you.6
“Your current car insurance might look fine at a glance, but if you’ve had the exact same policy for years, then chances are, it hasn’t kept pace with your changing lifestyle,” says Tindall.
For example, if your car is an older model that’s no longer worth a lot of money, and you decide you can live without it if it’s damaged or written off, you might decide you only need a third party policy, such as Third Party Fire & Theft or Third Party Property Only.
Or, if you and your partner are hitting the road in a new campervan, you might want to look for a policy that offers optional cover for contents inside your campervan or motorhome, such as Youi’s Comprehensive car insurance.
You had a poor claims experience
Sometimes the trigger isn’t a change in circumstance or a new vehicle, but your experience with your insurer.3 For instance, you might consider changing your car insurance policy after an accident if you’ve had to make a claim and were unhappy with how it was handled by your current insurer.
You’re looking to save
“If your premium spikes at renewal without explanation or your excess has risen so high (that) it’s waking you up at 2am in a cold sweat, take it as a sign to compare your options,” says Tindall.
But do bear in mind that cost isn’t the only consideration.
Tindall explains that while finding a competitive premium is important, the cheapest option isn’t always the best value if it doesn’t provide the cover you expect when you need to make a claim.
When is the best time to change car insurance?
“The easiest time to compare car insurance is at renewal time,” says Tindall.
Typically, your insurer will give you at least 14 days’ notice that your policy is up for renewal. This could be a valuable opportunity to explore other options and see if you can find a policy that’s a better fit for you.7
But renewal time isn’t the only window when you can change car insurance.
“If your circumstances have changed, your budget becomes too stretched or you’ve just finally found a pocket of time to do some admin, you can jump ship earlier,” says Tindall.
If you’ve only recently taken out a new car insurance policy, cancelling is usually straightforward, and you’ll typically get a full refund as long as you cancel within the cooling-off period. This is usually 14 to 21 days but can vary by insurer.3,8
On the other hand, if you’ve had your insurance for longer and want to cancel it mid-term, you could be eligible for a refund on the unused portion of your policy. However, some insurers may apply cancellation fees, so it could be worth checking your insurer’s cancellation processes and policy before you make a move.3
How often can you change car insurance?
There’s generally no limit to the number of times you can change your insurance provider, and you can make a switch anytime.3 But, as we mentioned before, changing car insurance at renewal time may help you avoid additional costs, such as cancellation fees.
But how often should you change car insurance?
“The key is to make reviewing your car insurance a regular habit, rather than automatically renewing year after year,” suggests Tindall.
How to compare car insurance
A good place to start your research can be by getting some quotes from a few different providers.8 The key to obtaining accurate car insurance quotes is to provide correct and consistent information in the estimate process.
Then, it’s time to see how each policy measures up.
“Key things to compare include the level of cover, the excess you’ll need to pay if you make a claim, and whether the policy offers market value or agreed value for your car,” says Tindall.
Here’s a quick checklist of things you may wish to consider when comparing car insurance policies:
- Car insurance type – Do you want a Comprehensive, Third Party Fire & Theft or Third Party Property Only policy?6
- Cover amount – How much is the maximum payout? Will your car be covered for its market value or agreed value?1
- Excess vs premium – Consider the balance between premium and excess. Keep in mind that while a lower premium may save you in annual policy costs, you will typically pay a higher excess amount if you need to make a claim.1 What does each insurer you’re comparing offer, and what’s the sweet spot for you?
- Covered events and benefits – What is included in the policy? Are things such as roadside assistance, contents cover and towing included?6 Are you covered for events such as storms, hail and flood?1
- Exclusions – What isn’t covered? For example, does the policy exclude things such as intentional damage, mechanical failure or wear and tear?6
- Limits – Are there any exclusion periods or benefit limits,1 such as caps on how much you can claim for contents inside your car?
- Optional extras – Does the insurer offer the types of optional cover you want, such as roadside assistance, hire car or windscreen repair?1
Tindall also recommends looking to consumer reviews for an insight into the insurer’s claims process and reputation for customer service.
“A policy can look great on paper, but the experience when you need to make a claim is an important part of the overall value.”
How to change car insurance
So, you’ve compared your options and you’re ready to transfer to a new policy. Here’s what to do when changing car insurance.
Step 1: Make the switch
Sign up for your new policy. You may want to set your new policy’s start date to the day on which your old one is set to cancel or expire.3
Step 2: Cancel your old policy
Once you’ve paid for and accepted your new policy, get in touch with your previous insurer to cancel your insurance. They should provide you with written confirmation of your car insurance cancellation.3
Step 3: Follow up
Your car insurance switch is complete! It might be a good idea to contact your new insurer to confirm your new car insurance policy is active.
Will changing car insurance provider affect my no claim bonus?
Each insurer that offers a no claim bonus typically handles it differently. Some may allow you to carry existing bonuses over, while others may not.3
However, the Australian Government’s Moneysmart website advises consumers not to stay with an insurer just to keep a no claim bonus or rating, as this may not always mean you’re paying less for your cover.9
“At Youi, we don’t offer no claim discounts in the traditional sense,” explains Marni Jackson, Youi’s Head of Product – Vehicle and Lifestyle.
“Instead, we look at your driving experience and claims history, along with a range of other factors, when calculating your premium, rather than offering a separate reward or discount.”
Why some drivers choose Youi
If you’re interested in changing car insurance providers, you might be curious whether Youi is a good fit.
“There are a few reasons drivers might choose Youi,” says Jackson.
“For one, we’re all about offering insurance that’s a bit more ‘you-shaped’. This means we take the time to understand you and how you use your car, so we can offer a premium that really reflects your situation.”
“Youi also includes roadside assistance,10 towing costs11 and storm, hail and flood cover12 as standard with our Comprehensive car insurance policies.”
Then, there’s Youi’s great reputation as a trusted insurer.
“We’ve received thousands of five-star reviews from our customers and won multiple awards for our service. In fact, we were recently named Finder’s 2026 car insurance provider of the year,” says Jackson.
The Finder awards are judged based on a comprehensive, in-depth analysis of an insurer’s customer experience, claims experience, product value and price.13
Interested in changing car insurance and wondering if Youi could be a good fit? Visit our website to learn more about Youi’s car insurance options, start a quote online or get in touch with our friendly team on 13 9684 today.
1 Source: Canstar – Compare car insurance, July 2026
2 Source: Canstar – Car insurance costs rev up as drivers urged to change gears, June 2026
3 Source: Canstar – How to change car insurance provider?, January 2025
4 Source: Canstar – How is car insurance calculated in 2025?, January 2025
5 Source: Cars24 – How to Choose a Car Insurance Policy in Australia, June 2026
6 Source: Moneysmart – Choosing car insurance, July 2026
7 Source: Canstar – Car insurance renewal: What you need to know, May 2025
8 Source: Forbes – How To Switch Car Insurance In Australia, May 2024
9 Source: Moneysmart – No claim bonus on car insurance, June 2026
10 Youi Roadside Assist available with Comprehensive policies only. Exclusions, limits, waiting periods and additional fees may apply. Cover not available within 24 hours of taking out or upgrading to Comprehensive cover. For full details, see the PDS, T&Cs & TMD.
11 Available with Comprehensive and Third Party Fire & Theft policies only. Limits apply. For full details, see the PDS.
12 Exclusions and limits may apply. Where you have increased your cover or reduced your excess within 72 hours of a flood, storm, hail or bushfire occurring, cover will be limited to the amount that was effective prior to the change. Loss, damage or legal liability caused by, resulting or arising from flood, storm, hail or bushfire during the first 72 hours of your policy first being purchased is excluded unless certain conditions apply. For full details, see the PDS, TMD and your policy schedule.
13 Source: Finder – Provider of the Year Awards 2026, May 2026
