Has the arrival of your car insurance renewal ever given you that sinking feeling? Sometimes it feels like a punch to your gut. Car insurance is a confusing topic, but here in Australia, it’s really a must. It’s not just about legality; it’s about financially protecting yourself if the unsure were to happen. A myriad of things influence how much car insurance you are paying. This article will explain to you these factors, so you can find something affordable or the best deal.
Factors Influencing Car Insurance Prices in Australia
Insurers account for several variables in determining your premium. Most simply put, a premium is the price you pay for insurance coverage. Therefore, these factors are really a measure of how risky you are as a driver.
Driver Profile
The kind of driver you are constitutes an important consideration: age and experience of the driver. Any good driving record with not having any accidents or tickets is a brownie point. Although gender sometimes matters depending on the type of car insurance offered, usually they see the insurance premiums for younger and inexperienced drivers to be higher as they belong to high-risk categories of insurance drivers. Well-experienced drivers with clean records are almost always offered the best rates.
Vehicle Characteristics
What matters is what you drive: a sports car or a family sedan? Car insurance prices depend on the car’s age, safety features, and engine size. It is more expensive to insure a fast-model high-end vehicle since car repairs are costlier. On the other hand, safer vehicles fitted with the likes of airbags give off a lower premium. Any customization done on your car can also affect its costs.
Location & Usage
How you park at night matters to insurance people. Urban areas with high rates of theft cause costs to swell. Exact mileage undertaken within a year counts, too. Going to work every day is riskier than taking the car out only on weekends. Insurers want to know more about how you use the vehicle most of the time.
Types Of Car Insurance And Their Prices In Australia
A range of car insurances further exists in Australia. The more coverage, the higher the price. It’s important to know what each type covers so that you can make an informed choice.
Comprehensive Car Insurance
This is the most comprehensive cover you can buy. It covers any damage to your own vehicle, irrespective of fault. More particularly, comprehensive insurance covers theft, fire, and vandalism. It also covers damage to other vehicles. Hence, this is the most expensive insurance. Premiums range between $800-$2000+ per year, with variations based on the factors stated above.
Third Party Property Damage Insurance
This one covers damage inflicted by you on others’ property and vehicles. It’s a more affordable category that does not cover damages to your vehicle. Premiums might range between $400-$800 yearly for these TPPD policies.
Third Party Fire and Theft Insurance
This is an intermediary insurance cover in that it covers fire and theft for your motor vehicle in addition to covering what third-party insurance covers. It provides protection that lies somewhere in between basic third-party and comprehensive coverage. The annual average for this type of insurance can be anywhere from $500 to $1200.
How to Effectively Compare Car Insurance Quotes
You can save money by comparing quotes. But you need to do it right. Here are some steps to take in order to get the best deal.
Establish Your Requirements
Which level of cover do you really need? Think about your situation. A new car would require comprehensive insurance, while an older car might need third-party cover. You shouldn’t over-insure, but you also shouldn’t under-cover.
Go Online to Compare
Several online sites in Australia allow you to compare car insurance quotes. Compare the Market, Finder, and iSelect are some popular sites. Enter your details once and you will be shown quotes from various companies. Kindly compare different policies from different sources.
Read the Product Disclosure Statement
Never skip reading the PDS. This is crucial. It covers all the information about a particular policy. Understand what is included, but more importantly what is excluded. Exclusions and your excess will be key.
Tips to Reduce Your Car Insurance Premium
Want to bring down your car insurance premium? Here are a few simple tricks you could use.
Increase Your Excess
This is the first amount you pay for your claim. Increase your excess to reduce your premium. However, ensure you can afford the excess if something happens.
Keep Reviewing Your Policy
Don’t set and forget for your car insurance. Review once a year for renewal. Needs might have changed. Other companies could offer a better price. Gather quotes.
Safe Driving
Clean driving records are your greatest friends. No accidents. No traffic violations. Some insurance companies offer discounts for safe driving courses. Your wallet thanks you for safe driving practices over the years.
In Conclusion
Car insurance pricing varies in Australia according to many factors. Your driver profile and your car are some of them. What coverage you select does matter. It is imperative to obtain comparison quotes. Do not just settle for the first one you see. Take your time to study the market and compare your options; this will result in great savings for you. You are now all set to make an informed decision.
