Car insurance premiums can be a significant expense for vehicle owners. However, there are ways to save money on your premiums without sacrificing coverage. Here are some tips and hacks for reducing your car insurance premiums in Australia.
Shop around
One of the best ways to save money on your car insurance premiums is to shop around. Different insurance companies offer different rates, and you may be able to find a better deal by comparing policies from multiple providers.
You can use comparison websites such as iSelect and Compare the Market to compare car insurance policies and premiums. It’s also a good idea to contact different insurance companies directly to see if they offer any exclusive discounts or promotions.
Higher excess
Your excess is the amount you pay out of pocket before your insurance coverage kicks in. By increasing your excess, you can lower your car insurance premiums. However, it’s important to make sure you can afford to pay the excess if you do have an accident.
Consider how much you can realistically afford to pay out of pocket and adjust your excess accordingly. Increasing your excess by just a few hundred dollars can make a significant difference in your premiums.
Bundled policies
Bundling your insurance policies can also help you save money on your car insurance premiums. Many insurance companies offer discounts when you purchase multiple policies with them, such as home and car insurance.
Before bundling your policies, make sure that the total cost of your premiums is lower than if you were to purchase the policies separately. It’s also important to compare the coverage and benefits of each policy to ensure that you are getting the best value for your money.
Choose your car wisely
The type of car you drive can affect your car insurance premiums. Cars that are more expensive or have a higher risk of theft or accidents may have higher premiums luxury vehicles and sportscars
Before purchasing a car, research the insurance premiums for different makes and models. Choosing a car with a lower risk of theft or accidents can help you save money on your premiums.
Improved driving
Your driving habits can also affect your car insurance premiums. Insurance companies may offer discounts for safe driving habits, such as not getting any tickets or accidents.
Consider taking a defensive driving course to improve your driving skills and potentially reduce your premiums. Compare the Market stated that auto insurers will require proof you completed those courses when you are applying for a lower premium. You can also install a telematics device in your car to track your driving habits and potentially qualify for discounts based on your safe driving behaviour.
Annual payments
Paying your car insurance premiums annually instead of monthly can also help you save money. Many insurance companies offer discounts for customers who pay their premiums upfront. While paying annually may require a larger upfront payment, it can save you money in the long run by avoiding monthly processing fees.
Good credit score
Your credit score can also affect your car insurance premiums. Insurance companies may use your credit score as a factor in determining your risk level and premiums. To maintain a good credit score, pay your bills on time, keep your credit card balances low, and check your credit report regularly for errors or inaccuracies.
Install safety features
Installing safety features in your car can also help you save money on your car insurance premiums. Features such as airbags, anti-lock brakes, and automatic seat belts can reduce the risk of injuries in the event of an accident, according to the team at Policy Genius.
Some insurance companies offer discounts for vehicles with certain safety features, so it’s worth considering adding them to your car. However, it’s important to make sure that the cost of installing the features doesn’t outweigh the potential savings on your premiums. For Australians in need of vehicles under a good insurance deal, the Australasian New Car Assessment Program will educate you on which vehicles have high safety ratings.
Consider usage-based car insurance
Usage-based insurance is a type of car insurance that bases your premiums on how much you actually drive. This can be a good option if you don’t drive your car very often or only use it for short distances. Usage-based insurance typically involves installing a telematics device in your car to track your driving behaviour, such as speed and distance. Your premiums are then adjusted based on your driving habits.
If you’re interested in usage-based insurance, make sure to compare policies from different providers and read the fine print to understand how your premiums will be calculated.
Review your coverage regularly
It’s important to review your car insurance coverage regularly to make sure you’re getting the best value for your money. As your circumstances change, such as when you move or buy a new car, your insurance needs may also change.
Review your coverage annually and compare policies from different providers to see if you can save money on your premiums. It’s also a good idea to talk to your agent or broker to make informed decisions about your coverage.
Reducing your car insurance premiums doesn’t have to be difficult, especially when you rely on your vehicle to move out and about most of the time. You can save money on your car insurance while still protecting your vehicle and yourself.
DISCLAIMER: This article is for informational purposes only. CIGNO does not endorse any insurance product nor have business relationships with any insurer or insurance market resource mentioned in this article.