Are the bills weighing on your mind? Is everything costing more? Well, you are not alone! There is a growing trend among Australians to save, and saving on car insurance is truly a good starting point. Having car insurance is indispensable since it saves you from steep financial losses due to unforeseen circumstances on the road. Along the road though, this becomes more and more expensive.
In this article, we shall take you through the ways of obtaining cheap car insurance. We shall show you how to save money while having adequate coverage. Let’s begin!
Getting To Know Car Insurance Basics
Knowing about the workings of car insurance will be very important if you want any way of saving on it.
What is Car Insurance?
Car insurance is an agreement that you enter into with an insurance company. You pay a premium- the cost of your insurance. In return, the company agrees to pay for the damages if your car is involved in an accident. In the event of an accident, you usually pay an excess, which is the amount you are required to pay upfront before insurance pays for anything.
Types of Car Insurance in Australia
In Australia, car insurance essentially falls into three categories:
Comprehensive
This gives the most extensive cover. It compensates for damage to your car regardless of fault, as well as damage caused to others’ property.
Third Party Property Damage
This addresses damages done by you to others’ cars or properties, but does not address damages done to your own vehicle.
Third Party Fire and Theft
It covers Third Party Property Damage, but it will also pay you if your own car is stolen or damaged by fire.
Which one suits you best? It even depends on your circumstance and budget.
Factors Affecting Car Insurance Premiums
Insurers look at a range of things to establish how much they will charge an individual. Some are:
Age
Young drivers are usually charged more for insurance as they are perceived more as a risk.
Driving History
Any accidents or tickets? Higher likelihood of prices rising.
Location
City price: probably much higher than rural prices.
Make/Model
Cars that are more expensive or sporty will also charge more for insurance.
With knowledge of all those factors, you now know how to gauge your premium.
Proven Strategies to Find Cheaper Car Insurance
So here are some excellent strategies to help trim those car insurance bills!
Compare Quotes From Multiple Insurers
Never ever settle for the first quote. Must keep looking! Insurers should be compared. Enter comparison sites so everything is in front of you in a minute. Also check direct insurers for quotes to ensure the maximum possibilities are covered. By getting quotes from more than one company, you can find the best deal.
Increase Your Excess
Raising your excess will most likely mean a reduction in your premium. This is a juggling act. Can you afford a higher excess in the event of an accident? Give it some thought before deciding.
Bundle Your Insurance Policies
Do you have home or contents insurance? Some insurance companies will allow a discount for bundling policies together. This can make quite a saving for you! Ask for bundling discounts.
Ways to Maximize Discounts and Savings
Let us talk more ways to save on car insurance.
Look for Discounts
Insurers typically tend to offer discounts for various reasons some of them may include for example if you are listed amongst the safe drivers or when you are above a certain age like say senior citizen discounts for being in certain occupations as well as sometimes there are also some generic discounts available. Always inquire about these discounts.
Annually as Opposed to Monthly
Annual premiums sometimes cost less than monthly ones. Additionally, some companies charge extra fees for paying premiums on a month-to-month basis while there are other companies which don’t add anything on the total premium cost at all but you will also have your amount paid annually.
Review Your Coverage Needs from Time to Time
Your insurance requirements vary as time goes by. Is your automobile aging? Its price drops. It may no longer be of worth to insure it fully. Don’t miss out on downgrading to much cheaper covers.
Location, Location, Location: How Your Address Affects Your Premium
Where you live dramatically affects the amount of insurance you pay.
High-Risk Areas versus Low-Risk Areas
You can already know that if you are living in an area with a high rate of crime or accidents, your premium might be higher because those areas are the ones that are perceived by insurers as more risky.
Garaging Your Car
This might reduce your premiums. Garage parking typically protects a car from theft or damage. Make sure this is addressed with your insurer.
Reviewing the Address
Moving to a different place can cut costs. If you are shifting to a safer, low-risk suburb, convey this to your insurer for potential reductions in your premium.
Conclusion
Cheap car insurance deals in Australia are easily obtainable: comparing quotes, increasing your excess, and looking for discounts. Remember, however, to balance cost-saving and good coverage; do not scrimp on essential protection. Review your car insurance today. Begin saving money without compromising peace of mind.
