Is it just me or is everything costing more? Car insurance premiums have hopped on the high-price bandwagon too. It becomes even trickier when things must be dealt with at different times. You cannot get rid of car insurance, but there must be a way to find out which one’s cheapest while still fulfilling your basic needs. Some kind of coverage is necessary. This article shall explain how to get affordable car insurance in Australia.
Different Types of Car Insurance and Their Coverage
Let us break it down into types of car insurance. The key is knowing the differences for choosing what’s right for you. It would offer options that might match someone else’s pocket. In addition, it would provide protection for you in case anything goes wrong.
Compulsory Third Party (CTP) Insurance
CTP insurance protects you if you injure someone in an accident. It’s obligatory and usually registered with your car. That means big medical bills if you’re at fault. It doesn’t cover damage to vehicles. You may have different CTP rules according to the state from which you belong.
Third Party Property Damage
This insurance covers damage done to other people’s cars or property. For example, if you rear-end someone, they would probably be reimbursed by that group of insurance companies. It is generally cheap compared to comprehensive ones, causing them to sometimes opt for it. However, it will not help if your own car gets damaged.
Comprehensive Car Insurance
Comprehensive car insurance is the most complete option. It covers all damages incurred by your car, damage caused to other cars, theft, fire, and loss/damage caused by natural calamities. It takes care of many unexpected incidents. Also, the other extras can be attached to this insurance. Windscreen cover and roadside assistance are two of these extras. Another inclusion is hire car after accident, providing the ultimate peace of mind.
Car Insurance Premium-Affecting Criteria
Insurance companies keep several checklists to customize your premium for a specific customer. Knowing those factors is essential to understanding your quote. You may, hence, have ways to lower it.
Driver Profile
An insurance company will look into your age, driving history, and where you live. Clean records generally entail smaller premiums. Demerits and accidents contribute to cost increases. Some insurers will include other things as well. Your sex or occupation may also be taken into account.
Car Specifications
The car being driven is vital in determining the cost of premiums for the insured. Generally, newer, safer cars incur lower insurance costs. The make and model, age, and engine size of the car start to matter. Modifications or fancy accessories can even increase your premium.
Location and Garaging
Where you live matters. Somebody who lives in cities with higher rates of car theft will pay higher premium rates. Accident-prone areas will also affect rates. Garaging your car is helpful. A car parked on the street could be more at risk of theft or damage.
Cheap Car Insurance Strategies
Want to save on car insurance? These tips can help you find the best possible deal. Let’s check out some time-tested strategies.
Comparison Websites and Tools
Comparison websites are a great time and money saver. Sites such as Compare the Market, Finder, and Canstar will give estimates from various insurance companies. Make sure that you are entering the correct information so that you can get accurate quotes.
Increasing Your Excess
Choosing a higher excess generally means lower premiums, but make sure you can afford the excess should you decide to make a claim. Weigh your risks and benefits accordingly.
Bundling Insurance Policies
Some insurers give you a discount for combining policies. For example, you may combine car and home insurance. Think about NRMA, RACV, or AAMI for possible discounts. Bundling can save you some money!
Reviewing and Renewing Annually
Do not treat your car insurance as a “set and forget” commitment. At least once per year, review the policy to see if a better deal is available, and negotiate with your existing insurers; they may offer you a substantially lower price to keep you as their client.
Make Insurance Jargon Clear
Car insurance can be complicated. A little knowledge into its terms and jargon will allow you to understand what you are actually buying. Here are some popular terms explained.
Policy Wordings
Always ensure that you read and understand the specific policy wording, which tells you what is covered by that policy. Particular attention shall be placed on exclusions, which refer to anything that the policy will not cover.
Agreed Value vs. Market Value
Agreed value is the amount an insurer is prepared to pay you should your car be written off, whereas market value is what your car is worth at the time of the incident. Consider an agreed value for classic or modified cars, whereas for others, market value should suffice.
No-Claim Bonus (NCB)
A No-Claim Bonus (NCB) is a discount you receive for not making claims. Each year without a claim will add to your discount. Keep it safe by not making claims unless absolutely necessary. Certain insurers allow you to protect your NCB if you make a claim.
Conclusion
Cheap car insurance in Australia is attainable. Comparing quotes and understanding your policy completes the job. Review what is available each year. You’re then good to save!
