How to Switch Car Insurance Companies in 6 Easy Steps

Switching car insurance companies can seem like a daunting task, but it can often save you money, offer better coverage, or provide improved customer service. With a structured approach, switching can be seamless, and you can be confident you’re choosing the right provider.

In this guide, we’ll cover six simple steps to help you make an informed decision and complete the transition without any complications. Whether you’re hoping to lower your premiums or find a policy better suited to your needs, AIG is here with expert advice to help you through the process.

Step 1: Assess Your Current Insurance Coverage and Needs

Before you begin comparing insurance providers, take a close look at your current policy. Understanding what you already have and what you may need will simplify your search for a better match. Here’s what to look at:

• Current Coverage Levels: Identify your current policy limits and decide whether you require Third Party Fire and Theft or Comprehensive Car Insurance.
  
  
• Premiums and Deductibles: Take note of your monthly or yearly premiums and deductibles. Are they affordable, or could they be lower for the same coverage?
  
  
• Additional Coverages: If you have add-ons like roadside assistance or rental car coverage, decide if they’re essential for your new policy. Many insurers provide optional coverages for added protection, but they can come at a cost.

Once you know what’s essential, you’ll be ready to shop for a policy that better suits your needs.

Tip: Understand the difference between Comprehensive and Third Party Fire & Theft Insurance

Step 2: Compare Car Insurance Providers

Comparing insurance companies is a critical step, as rates and benefits can vary significantly. When evaluating options, focus on pricing, discounts, customer service, and coverage features. Start by requesting quotes from several providers and ask about available discounts—many insurers offer reductions for safe driving, multi-policy bundles, or even specific safety features in your car.

Reviews are also invaluable, as they provide insight into an insurer’s responsiveness and claims handling; positive feedback on these factors can be just as important as competitive pricing.

Additionally, explore coverage options like breakdown assistance, personal accident cover, and windscreen protection, as these add-ons can help you tailor a policy to fit your needs. If you find an appealing offer, check if switching mid-policy will affect costs, as some insurers may charge cancellation fees for changes before your renewal date.

Step 3: Know the Difference Between Switching at Renewal vs. Mid-Policy

Switching at your renewal date is the simplest way to change providers without incurring extra fees, as it allows you to end the contract naturally. However, switching mid-policy might be necessary, especially if a new provider offers significantly lower premiums or improved service. If you're close to your renewal date, it may be wise to wait and avoid additional costs.

For mid-policy switches, be aware that some insurers may charge fees, so contact your current provider to confirm the exact amount. Certain insurers may even waive or reduce these fees if the switch is due to a major life change, such as relocating or purchasing a new car. Additionally, check if you’re eligible for a pro-rated refund of any unused premium, as you may be entitled to a partial refund if you’ve prepaid for the year.

Step 4: Finalise and Purchase Your New Policy

First, confirm that the new policy includes everything you require, Third Party, Fire and Theft or Fully Comprehensive, and any additional coverages you want.

Once you’ve confirmed that is the best coverage for your needs, it's also crucial to set the start date to coincide with the end date of your current policy; while a day or two of overlap is fine, even a single day without coverage could expose you to financial risk.

Lastly, request a written copy of the policy and store it somewhere accessible. This document serves as proof of your coverage and includes essential details like your policy number and customer service contact information.

If you need help understanding specific policy terms, speak to a representative from the insurer, our staff are more than happy to offer detailed advice on understanding policy details. Contact us on 0818 244 244 for more information.

Step 5: Cancel Your Old Policy Carefully

With your new insurance in place, it’s time to cancel your old policy. This step is important to prevent any lapses in coverage and avoid double payments. Here’s how to approach it:

• Give Proper Notice: Contact your provider to confirm their requirements.
  
  
• Get Confirmation in Writing: Ask your old insurer to send written confirmation of cancellation. This document serves as proof that your policy is no longer active and can prevent potential billing issues.
  
  
• Verify Your Refund: If you’ve prepaid for your policy term, ask if you qualify for a refund for any unused premium. Even a small pro-rated refund can help offset any cancellation fees. Remember to keep this cancellation confirmation in your records in case of any future disputes.

Step 6: Transfer Your No-Claims Bonus (NCB)

The no-claims bonus (NCB) is one of the best ways to save on your new policy, offering a discount on premiums as a reward for claim-free years. To ensure you don’t lose this valuable bonus, start by requesting an NCB statement from your previous insurer; this document verifies your no-claims history and is often required by new providers to apply your discount.

Once you have it, provide the statement to your new insurer to secure your no-claims discount, keeping in mind that each provider may offer different levels of savings based on your NCB.

Even if you switch insurance mid-policy, you can usually transfer your no-claims bonus, so be sure to ask about this option when arranging your new policy.

FAQ: Switching Car Insurance Providers

Can I change car insurance before my renewal date?

Yes, you can switch mid-policy, but this may come with cancellation fees. Consider whether the savings on a new policy outweigh any early termination fees from your current provider.

Can I switch car insurance after an accident?

Yes, but any open claim remains with your original provider. If you’ve recently filed a claim, this may impact your new premiums. It’s helpful to check rates with and without the accident on record to see if switching is beneficial.

How long does it take to switch car insurance?

Switching can be quick, often just a day or two if your paperwork is in order. However, allow yourself about a week to review policies and coordinate the cancellation of your current policy.

Do I have to cancel car insurance when I switch?

Yes, cancel your old policy once your new one is active. This avoids double billing and ensures that the old insurer isn’t charging you after you’ve switched. Always get written confirmation of cancellation.

Do car insurance companies refund premiums I already paid?

Most insurers would refund unused premiums if you paid ahead, though some may deduct cancellation fees. Check with your provider to understand your eligibility for a refund.

What happens to my no-claims bonus if I switch?

Your no-claims bonus usually transfers to your new provider, allowing you to continue benefiting from reduced premiums. Be sure to request an NCB statement from your old insurer.

Conclusion

Switching car insurance companies doesn’t have to be stressful. With these six easy steps and answers to common questions, you’ll be equipped to make the best decision for your needs.

Whether it’s saving on premiums or securing better coverage, AIG is here to help you every step of the way. We offer comprehensive, customer-focused car insurance options tailored to your needs, making the switch to AIG is a move you can feel confident about.