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How to keep your insurance premiums low: what to look out for

While car insurance is compulsory in Australia, it does not have to be something that breaks the bank. 

In the same way that you should regularly freshen up the look of your car, you should also make a conscious effort to keep your insurance premiums low too. Sometimes, it can be as simple as buying the right car, but in most cases, your insurance premiums will be made up by a range of other factors that may or may not be within your control.

Thankfully there are a few ways you can do this, which will not only ensure you have a good level of cover, but also save you quite a bit of money at the same time.

Outlined below are some of the most effective strategies for reducing your car insurance premiums. Adopt any, or all of them, and you should find yours a lot more affordable.

Be a good driver

First things first, it is important to be a good driver.

Most people are aware that filing insurance claims as a result of an accident will increase their overall premium. However, many are less aware that speeding tickets and the number of points you have on your licence, are contributing factors too.

When finalising the amount they will charge you, insurers evaluate a range of variables prior to formalising a quote. Therefore, the ‘cleaner’ your driving record, the cheaper your premium will be.

For this reason, you should always be mindful to stick to the speed limits, drive sensibly and try your best to avoid accidents.

Compare quotes from other insurers

One of the easiest ways to lower your insurance premium, immediately, is to compare the prices offered by other insurers.

There are dozens of insurance companies out there vying for your business. Many of which will quote much more competitive premiums than you are currently paying.

To help you find the best deal, it is worth using a car insurance comparison website to ascertain which companies provide the cheapest prices for your level of cover. Although it is also worth talking directly to some of them too.

When doing this, don’t just be seduced by the most attractive price. Be sure to check exactly what type of cover you would be signing yourself up for.

For this reason it is worth considering comprehensive insurance with NRMA or another similar well-known provider.

Get Married and/or have kids!

Ok, well this might be a bit extreme to save a few dollars. But the point here is that many insurers charge a cheaper premium rate for those who are married.

The reason for this is that they see married people, especially those with kids, as being less statistically likely to be involved in a crash. Some things become more difficult when you have kids, such as grocery shopping or spending time with your partner. However, there are some underlying benefits that you may not be aware of. 

For this reason, be sure to let your insurer know of any change in your lifestyle circumstances. Such as getting married or having children, as this could help to reduce the amount you pay.

Park somewhere safe and secure

Unless your work involves you doing a lot of driving, your car will actually spend significant amounts of time just parked outside your home.

This is especially true if your commute into the office is via bus or train.

Therefore, if you can, try and park in a garage, or off-street on your premises, as this will reduce your premium.

Consider also installing a car alarm, and even put on a steering wheel lock whilst the car is unattended, as this will reduce the chances of your car being stolen. Which therefore may be a factor in your insurance company further reducing the cost of your premium.

Look for an insurance company that offers ‘pay as you go’

If you are one of those people who mainly use their vehicle at the weekends, then statistically, the chances of you being involved in an accident are slim. Certainly, much slimmer than someone who drives every day, and especially during rush hour.

Therefore, your premium should not be charged at the same rate as them.

Should you find yourself in a situation where you rarely drive outside of the weekends, then it is worth trying to find a provider that offers a ‘pay as you go’ policy.

This could be either a distinct, stand-alone policy, or as a feature of a standard offering. Both of which should offer significantly lower insurance premiums.

Check for new offerings from your current provider

Insurance companies bring out new offerings all the time, but they don’t always automatically apply them to existing customers.

If you want to stay with your current provider, it is worth periodically researching what kind of deals they are offering new customers. (Comparison websites are a good place to get this information).

Should you see cheaper prices being quoted than what you are currently paying, don’t be afraid to ask for a reduction on the cost of your own premium.

You could even ask them to match the cheapest quote you can find from other providers. In an attempt to keep your business, many insurance companies would agree to.

Don’t claim minor things

A mistake many people make is to file too many claims with their provider.

Whilst this is technically what insurance is for, as a rule of thumb it should only be used when you need it the most. In other words, if you are involved in a crash that results in major damage to your vehicle.

For minor damage like scratches to the paintwork, or the replacement of a side mirror, you would be better off having these repaired by a mechanic at your own expense.

The more times you claim, the more likely your insurance will rise when it is time for renewal. So, the best way of keeping it down, is to not make any unless it is absolutely necessary.

Change the type of vehicle you drive

Everyone knows that generally, the more expensive and newer your car is, the higher your cost of insurance for it will be.

We are not saying go out and buy a cheaper car immediately, but it is worth bearing this in mind when the time comes for you to replace your current vehicle.

Final Thoughts

We hope this guide has provided you with some useful tips on how you can lower your premium.

As previously mentioned, car insurance is something we are all legally obliged to have. But at the end of the day there is no reason why we should pay more for it than we need to.

By following the tips outlined above, you will ensure that you don’t.

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