As seen on:

SMH Logo News Logo

Call 1300 303 181

How to Save Yourself a Bundle on Car Insurance

You’ve found the car you want, and you’re ready to close the deal – except for one thing – you’re concerned about insurance costs. And with recent research from JP Morgan and Taylor Fry suggesting a 3% increase in insurance premiums over coming months, it’s a justified concern – especially after prices increased 6% from 2014-2015. Not to worry though, here are 9 tips to save on your insurance.

1. Nominate the right drivers on the policy: Adding a more experienced, secondary driver can lower the cost of your premium, provided that driver has a no-claims history and good rating. Younger drivers however, are viewed as an insurance liability. While some niche insurers can offer them better options, generally their inclusion raises prices.

2. Use an insurer that meets your needs: Whether you: drive low kilometres; own a vintage car; are a young driver; or live in a certain region – no one insurer suits all. Some operate: on a kilometre basis; specialising in classic cars; by pricing better for certain locations; or by offering discounts to those restricting under 25’s from driving.

A driver like this probably shouldn’t be listed on your policy

A driver like this probably shouldn’t be listed on your policy

3. Research: Before renewing or switching policy, shop around – comparison sites such as iSelect or Compare the Market offer easy comparisons. With loyalty bonuses no longer as common as before, and ratings transfers more widespread, it’s easier to change providers and save hundreds. Failing that, ask about promotions or for a better deal! Though do be wary of any promotion’s duration – premiums often increase thereafter.

4. Pay up front and bundle insurance products: Paying the policy in full will save you money compared with monthly instalments, however, be wary of any surcharges for card payments. Some insurers offer lower premiums when bundling insurance products (multiple cars, home and contents, bike, boat, etc.)

Take advantage of any promotions or bundling opportunities to save on your premium.

Take advantage of any promotions or bundling opportunities to save on your premium.

5. Consider your coverage: If you own a newer car, comprehensive is more fitting whereas older cars are more suited to third-party property or third-party fire and theft insurance. Increasing your excess or omitting coverage for items covered elsewhere can reduce your premium. Furthermore, insuring your vehicle prior to purchase, and ensuring coverage does not lapse, will place you in good stead. Items stolen from a car generally aren’t covered, while some extras (roadside assistance) can be sourced externally.

6. Alter the car’s value: Depending on the insurer, adjusting the policy to a lower (agreed) value can help. Market value is typically based on the insurer’s findings, so if you need to dispute this appraisal, source your own quotes and provide good maintenance records.

7. Maintain a clean driving history: Your insurance rating determines the premium you pay – some insurers have a no-claims discount, but incidents drive up prices – even if the car was driven by a friend, and potentially if you weren’t at fault. Some insurers may wave the first at-fault incident but this is rare.

Even incidents where you weren’t at fault can push up the price of your premium. Read your policy carefully.

Even incidents where you weren’t at fault can push up the price of your premium. Read your policy carefully.

8. Maintain accurate details: While some may be tempted to omit details on past claims or change info on the car’s storage, should a claim arise, insurers generally probe further into your details and you risk forfeiting all your coverage – don’t do it!

9. Read the policy: Not only do exclusions vary (unroadworthy/modified vehicles; non-covered drivers; incidents involving drugs/alcohol; etc.) but there are considerable differences in coverage to consider. When ‘Choice’ reviewed insurance policies last month, it found RACV, NRMA, SGIC, SGIO charge drivers returning from license suspension a higher excess as opposed to any increase in their premium – customers involved in incidents beyond their control however, cop a 13% increase. In contrast, AAMI charges previously suspended drivers up to 50% more for premiums, while Allianz doesn’t offer cover.

One comment

  1. Chandana De Silva says:

    The premium is the least of my concern. I will always insure with a reliable well established company, easily accessible and have a well established team of repairers – not fly-by-night cheap corner shops. I always insist my vehicles are insured for an AGREED VALUE, not some fictitious value imposed by most insurance companies, thus devaluing vehicles to their advantage. All my vehicles have been insured with just one insurer for the last 45 years.

    February 29th, 2016 at 8:21 pm