5 Tips to Getting the Most Out of Your Car Insurance
How much you pay for car insurance is dependent on several factors, including your marital status, age, what you drive, and where you live. While you can’t make an effort to grow up faster, move to another country or upgrade to a new car in most cases, you can still pay less.
How? You can save money instantly by comparing car insurance costs, packages, and providers with iSelect. Some Australians pay thousands of dollars a year when they don’t have to, but they can use the following simple tips that could save them a lot of cash.
1. Buy a Bundled Policy Online
Many car insurers will offer discounts if you purchase insurance online rather than in person. It costs insurers less to sell insurance coverage over the Internet, but the amount you save depends on the provider. Some offer a fixed amount, while others offer a percentage discount.
Instead of just getting car insurance, try to find insurers that offer “multi-policy” discounts. For example, most insurance companies will let you bundle home insurance and car insurance. Still, it’s worth it to shop around to see if you’ll get a better value from a split policy before locking in.
2. Pay Annually Instead of Monthly
Most car insurance providers will charge lower premiums if you pay annually instead of monthly. While this may not be the best option if you’re living paycheck to paycheck, it could be worth doing if you can save for a one-off payment next year. You could save hundreds this way.
Alternatively, you could choose a provider that doesn’t jack up the price of their monthly rates, although these policies aren’t easy to find. Before you swap over to another company, ask your current provider if they could lower your rate. Make sure you bring proof to back up your claim.
Your insurance provider won’t want you to leave, so it’s beneficial for your wallet to suggest, either directly or indirectly, that you’ll leave if they don’t offer you a good deal. Even if they can’t give you the exact same deal, they may be able to lower your monthly payment amount.
3. Drive Less and Drive Safely
By driving your car less, you’ll reduce your insurance premiums. Several Aussies received discounted premiums during the pandemic because they drove less than 10,000 KM in a year. If you select a “pay as you drive” policy, you’ll save on your monthly bill if you limit your driving.
While it’s good to be a safe driver regardless, you’ll pay less for your car insurance if you have a clean record. Several insurers will offer a “no claim” bonus, which gives you a discount if you don’t claim on your insurance. This discount increases every year if you have a clean record.
If you hold a learners, P1, P2, provisional or probationary license, your demerit points will stick onto your license for a year. If you have three demerit points, it will take three years for them to expire. If you want to save more on your license, try to drive safely or don’t drive at all.
4. Keep Your Car Secure to Retain Its Value
Cars that are kept out on the street are more likely to receive higher premiums than those that are kept in a garage or at your home. Insurers will see you as a risk if you don’t keep your car secure from break-ins and harsh weather, so consider keeping your vehicle in a car park.
Some providers will give you a discount if your car has security features like satellite tracking, an alarm, or an immobilizer. If you’re able to keep your vehicle safe, you’ll have an easier time insuring your car for its “market value” or “agreed value.” But, which value coverage is better?
It’s better to find an insurer who’ll ensure the market value of your car, as that indicates how much your vehicle is worth on the market the moment you make an insurance claim. It’s cheaper to insure your car for its “market value,” although you won’t be sure how much your car is worth.
5. Choose Your Insurance Extras Wisely
It’s usually a good idea to buy more comprehensive coverage for your vehicle, as that will ensure you pay as little as possible after an accident. At the same time, if you start adding on every insurance extra you see, you’ll be drowning in premiums from your high-cost policy.
Depending on what you purchase, it could be cheaper to buy insurance extras separately. For example, roadside assistance, windscreen cover, or hire car cover may be necessary, but you should only purchase these add-ons on vacation or during typhoon season.