Taking advantage of discounts isn’t the only way to save. There are a number of features on your policy you might be able to adjust, or actions you can take, to keep your insurance premiums low.
Adjust your excess
Your ‘excess’ is how much you’ll end up paying out-of-pocket when you make a claim. A higher excess means the insurer ends up paying less, and because this reduces their risk, it usually translates into lower premiums. Just keep in mind what you’re willing to pay when selecting an excess—it’s always prudent to settle on something you’re confident that you can afford.
Pay annual premiums
Paying your premium in annual instalments instead of monthly ones is usually cheaper overall1.
Keep your car safe
If your car is equipped with a security device, like an alarm or an immobiliser, or if you keep your car parked overnight in the garage (instead of on the street), then your insurer might be willing to reduce your premiums1.
Consider market value cover
With Comprehensive Car Insurance, there’s two ‘value types’ you can choose from: agreed and market value. With agreed value cover, you’ll receive a fixed sum for your claim if your car is ever written off or stolen. On the other hand, market value cover is generally cheaper, but it will only cover you for the price of your car on the market at the time of the claim2.
Low Kilometre Policies
Drivers who don’t use their car all that much might also be regarded as a low risk for insurers3. You might be able to reduce your premium if you only drive a limited number of kilometres, but this is something you’ll usually have to discuss with your insurer.
Alternatively, some insurers will offer specific, lower premium policies for drivers with low mileage. Budget Direct, for example, offers a ‘Gold Low Kilometres Comprehensive policy’ for people who drive less than 10,000km per year4.
Restricting Drivers
Some insurers will also offer a lower premium if you restrict your policy to drivers of a certain age. For instance, the insurers at Retirease can reduce your premium if nobody under 25 drives your car5.
This is because young drivers are statistically more likely to get involved in road accidents, so a policy that omits such drivers is going to pose a much lower risk for insurers6.
Sources:
1. Budget Direct - How Much Does Car Insurance Cost?
2. Moneysmart - Choosing Car Insurance
3. Budget Direct - How to Save on Car Insurance
4. Budget Direct - Car Insurance FAQs | Insuring Your Car
5. Retirease Insurance - Car Insurance Quote
6. PD Insurance - Car Insurance For Young Drivers