Top 5 Car Insurance Money Saving Tips

car insurance

Car ownership is expensive. You not only have to buy a car, but in Australia you also have to have a Green Slip as well as insure your vehicle – not to mention fill the tank with petrol which seems to be getting more and more expensive every time I visit my local petrol station.

Car Insurance can take a big chunk out of any budget, specially for younger drivers as they end up paying a lot more than the average because they are statistically more likely to claim. So You and Your Money have drawn up a list of money-saving tips to cut the cost of car insurance cover and help you find cheaper car insurance quotes.

car insurance

car insurance

Choose your car with care

Car insurers divide cars into lots of groups according to various factors including their engine size and the likely cost of repairs. The higher the insurance group, the higher the premium. So if you are buying a new car, it pays to contact the car insurance company first to check its rating.  And don’t modify your car with spoilers or fancy wheel trims because many vehicle insurers will load the premium.

Limit your mileage

Makes sense right…the more you are on the road the more likelihood the chances of having an accident. If you drive your car only on local roads or only at the weekend, you are statistically less likely to be involved in an accident than someone who commutes along a busy motorway every day.

Talk to your car insurer about your driving habits because a low mileage usually leads to a lower premium.  But make sure the figures are accurate because you could invalidate your policy if you breach the agreed mileage limit.

Drive with care

Points on your licence mean pounds on your premium, so obey the rules of the road. If you have committed a serious traffic offence, you could find it difficult to buy cover at all.

 

Increase your excess

Most policies carry a standard compulsory excess which varies from insurer to insurer, which is the amount you must pay towards any claim. If you agree to a bigger voluntary excess, you will normally be rewarded with a lower premium. Just make sure you can afford the higher amount should you have to make a claim.

 

Don’t claim

Drivers who don’t make claims can build up a no-claims discount (NCD). The NCD can be valuable, knocking more than 50% off your premium after five consecutive claim-free years. If you have a minor accident, it can therefore work out cheaper to pay for the repairs yourself and safeguard your NCD. You can also pay to protect your NCD – and the cost is often worthwhile.

 

So there you have it that is our top 5 tips for saving on car insurance.