In Australia, there is a high level of competition between insurance companies. As a result, customers are put in a relatively strong position when it comes to finding an insurance policy, and it is usually simple and inexpensive to switch to another insurance company if you feel that you could get a more suitable deal or a better level of service elsewhere.
If you decide that your insurance policy is not right for you, you are typically entitled to cancel the policy without charge within 14 days of its purchase, as long as you have not made a claim within this time. After this two week period you can still cancel your policy, but you are unlikely to be refunded the full amount.
If you have not claimed on the insurance you are likely to be refunded up to about three-quarters of its purchase price if you cancel within the first month; the return to which you are entitled will decrease over time. Towards the end of your policy you are unlikely to be refunded any money at all, and may even be charged an administration fee for early cancellation. If you have made a claim you are unlikely to receive any refund.
To cancel your insurance policy you are usually required to write to the insurance company, who should then reply to confirm receipt of your cancellation. Occasionally the insurance firm will send you forms to fill in, but the cancellation process is not usually extensive, and so most business insurance policies can be transferred or cancelled within one working week.
If you wish to change insurers you should make sure that you are covered by the new policy before cancelling your old one, in case of new exclusions or gaps in time for which you are not covered. For example, some policies will not pay out for the first month or more after the insurance was first purchased.
The insurance company has the right to cancel your policy at any time, but they must give at least one month's written notice to do so.
