According to recent statistics, there are over 20 million drivers on the roads in Australia. That is a lot of money that goes to insurance companies, including the premiums you have to pay for your policy. It may not seem like a good investment for you, especially if you have never had to file a claim, but not only is it the law to maintain coverage, but it is also important to be protected from having to cover the costs of a wreck out of your own savings.
So, even though it is mandatory to have some type of auto insurance on every vehicle you drive, it is also important to pay as little as possible for the coverage.
Let’s take a look at some easy tips and ideas for cutting car insurance costs so you can decrease the amounts you need to fork over every year to the insurance carriers.
- Deductible – The easiest way to save money on car insurance costs is to increase the deductible amount. The higher this number is, the lower the costs of the premiums will be. Be careful when adjusting this amount, though, because it is how much money you will have to pull out of your pocket before the insurance company will help with any claims you have filed.
- Levels of coverage – There are four main types of insurance you can get, each with its positives and negatives. You need to ensure that you always have the legally required amount, but the other levels of coverage will depend mainly on your specific circumstances. For example, if you own a newer luxury car, you would want to get comprehensive insurance. In contrast, if the vehicle is over 20 years old but not collectable, the lowest amount of coverage will probably be enough.
- Compare policies – You may be surprised at how different the costs will be from one insurance carrier to another. Car insurance should not be so expensive that you cannot afford to drive. Find an online comparison site like iSelect and let them send you numerous offers from their partner sites that would be willing to work with you.
- Extras – When you first get signed up for an auto insurance policy, there will be numerous extra added-on inclusions that you may not want. On the other hand, there may be something that you want but was not included in the first offer. This is why you need to take the time to read the entire contract being offered and make any necessary adjustments before signing it. Once the signing is done, it is hard to make changes to the policy.
- Driving habits – Always drive defensively. If you are unsure how to accomplish this, go to a local defensive driving course. That alone should lower your insurance premiums, but the point is that you need to reduce the chances of getting into an accident by paying attention and giving other drivers the right of way. If you are an excellent driver, consider letting your insurance company track your driving habits because it will decrease the premiums by a substantial amount.
These simple tips and ideas can substantially lower your auto insurance premiums and improve the chances of never having to file a claim. Every time you file a claim, your insurance costs will go up, which is why it is so important to only file a claim when absolutely necessary.
If the damage is something you can fix or afford to pay someone to fix, that is the route that should be taken. If you want your insurance costs low, avoid filing any claims at all.