Car Insurance Top Ten Tips
Drive down the cost of your car insurance with our top ten tips. Just don't be tempted to lie to your insurer, or forget to update them of any material facts, or your insurer could refuse to pay out on your claim.
Compare car insurance
If you have been renewing every year with the same insurer, you could be shocked at just how much you could save by shopping around. Comparing car insurance is easy with our comparison tool and could save you hundreds of dollars.
Online car insurance
By setting up your policy online and dealing with any claims over the phone, insurers can keep their costs low. In order to encourage customers to buy over the internet, many car insurance companies offer online discounts.
Discounts for multiple policies
Insuring more than one car with the same insurer can often net you a multi-policy discount. However, you may find that even with this discount, it works out cheaper to use separate insurers. The best way to find out is to use our comparison tool and get several car insurance quotes.
Raise your excess
Car insurance companies usually set an excess, which means you will have to pay out a set amount if you make a claim. Generally, the higher the excess you ask for, the lower the premiums will be. However, make sure you don't set them too high as it may work out to be quite expensive when you come to claim.
Pay annually
Many insurers give you the option of paying monthly, or annually. As car insurance can be quite expensive, especially for younger drivers, paying monthly could ease the financial blow. But be aware that some companies will charge you for this privilege. Either make sure your insurer doesn't penalise you for monthly payments, or pay the entire amount upfront.
Add a driver
Try adding a driver to your policy. It may seem strange that an extra driver could lower the price, but insurers look favourably on male drivers who have a female driver on the policy. This can also work for younger drivers who add their parents. However, don't put someone else as the main driver on the policy if they are not going to be doing most of the driving. Insurers view this as fraud and it will void your policy.
Modifications
Modifications are generally going to make your car more attractive to thieves and therefore hike up your insurance costs. Young drivers should consider this extra cost before making any changes. However, if you add an alarm, immobiliser or steering lock, this could earn you a discount on your policy.
Use your garage
Keeping your car on the road leaves it at risk to random vandalism, or theft, and insurers consider this a higher risk. If you have a garage full of junk, clear it out and keep your car in there instead. If you have the option of paying for an off-road parking space, this could save you money in the long run.
Keep down your k's
Have you moved closer to work, or take public transport now? If you have made any changes to your driving habits, let your insurer know. Lower mileage equals lower premiums.
Pay as you drive
If you don't use your car that much, you could consider pay as you drive insurance. A device in your car monitors how far you drive and you only pay for the number of kilometres you actually drive. At the moment, there is only one company in Australia offering this service – Real Insurance – but watch this space as the idea may take off.