Car insurance premiums are based on a variety of factors, including the type of car. To find the best premium for you, there’re a few things to consider before you even buy a car. Selecting a car with the following features can bring you a lower premium:
Generally, the newer, safer and more common your car is, the cheaper your insurance premium could be. Insurers are likely to offer a cheaper premium when they know that parts are cheap, damage is minimised and the driver is conscientious. The more of these features you can find in a car, the better your chances are at finding a good deal on car insurance.
Car insurance requirements can differ from state to state in Australia. Most car owners in Australia are required to have some form of CTP insurance1, and uninsured drivers face heavy fines2. CTP insurance only covers injury to people and death. It does not cover property damage.
In all Australian states and territories, except NSW, CTP insurance is covered in your registration. Some states still offer you a choice of insurer, and you should always check your registration paperwork to make sure CTP is included. In NSW, CTP insurance is called a green slip and you need to buy this separately before you register your car. In Victoria, CTP insurance is administered by the Transport Accident Commission (TAC) and is referred to as the TAC charge.
To protect yourself against the cost of repairs in the case of an accident, you can choose from comprehensive third party property or third party property, fire and theft insurance.
Your policy may include a myriad of extras and features, which will ultimately impact the price you pay. Some will reduce your premium, while others can increase it:
To choose an appropriate level of cover for your circumstances, ask these keys questions:
Your answers will help determine which level of cover you need and who can provide an affordable policy that meets your needs.
Once you’ve bought a car and know what you need in a policy, there are many ways to ensure you find the ideal policy at the best price.
It’s essential to choose a car insurance policy that suits your car and your individual needs. If you own a cheap car that you can easily replace, you can save by purchasing only third party property insurance3, rather than the more expensive comprehensive insurance.
One-size-fits-all insurance policies are a thing of the past, and providers differ greatly in their offerings. Once you decide on the right policy for you, shop around to find a competitive price. Our comparison service can give you up-to-date prices on comparable policies from our range of providers in just a few minutes.
Some insurers offer a discount when policies are purchased online. Be sure to check whether this is an option for your chosen policy and provider.
How often you pay your premium not only affects the total cost, but also your personal budget. If you can afford to pay annually, you’ll usually receive the lowest price on your policy. However, if an annual insurance bill will break the bank, it may still be beneficial to pay by the month.
Insurance needs change over time so be sure to regularly review your policy. Changing providers or choosing different policy features can be an easy way to reduce your premium.
Insurers can sometimes reward loyal customers4. Taking out more than one type of insurance with the same provider can often lower your premiums.
If you drive less than the average person, you may find a better deal through a provider that bases premiums on kilometres driven4.
Insurers usually offer lower premiums if you keep your car secure whenever possible. Parking your car in a locked garage and installing car alarms or immobilisers should help reduce your premium.
Each time you claim on your car insurance, you potentially increase your premium. Before going through your insurance for small repairs, consider whether you could cover the cost yourself to save money in the long run.
Consider whether accepting a current market value payout will work for you in the event your car is written off. Opting for an agreed value payout instead may increase your future premiums4.
The sheer number of car insurance providers and policies in the market can be overwhelming. When comparing policies, it’s not just about price.
iSelect gives you a detailed look at policy features, along with price, so you can compare like with like. That way, you can make sure you’re getting the right deal for your individual needs.
Call us today on 13 19 20 to compare car insurance policies today!