Car insurance is a legal requirement in Australia, although there are different levels of insurance cover that you can get. The type of vehicle you drive, your current budget, and what you perceive as risk will affect which level of cover you want to get.
But, whichever level you wish to acquire, you need to ensure you get the best possible deal. That saves you money. There are 5 practical options you should take to ensure you save money on your car insurance.
![](https://thefrisky.com/wp-content/uploads/2019/08/Car-Insurance-730x487.jpg)
Source: Medium
Contents
1. Shop Around
The first thing you need to do is look at a car insurance comparison site. You’ll find sites like Mozo specialize in listing car insurance comparisons and the best savings accounts. These are the best places to start your search.
You’ll be able to input your details once and get a list of results. You can compare them by price and by the level of cover they offer. This will help you to save money as you find the perfect balance between cover level and the price you’re willing to pay.
You should shop around at least 30 days before your current policy expires. This gives you time to find the best deal, save money, and inform your current company that you don’t wish to renew.
2. Consider Your Vehicle
Having a cheaper vehicle doesn’t guarantee that you’ll save money on your insurance. But, having a less powerful or more family-orientated vehicle does. Insurance companies look at the vehicle being driven and make assumptions about the type of driver. They use these to define risk. The sportier and more powerful your car, the higher the insurance premium will be.
You can’t change your age or the insurance company’s assessment of your vehicle. But, you can change your vehicle and accept one that is less powerful or less sporty. This will reduce the insurance band and can save you a significant amount on your policy.
![](https://thefrisky.com/wp-content/uploads/2019/08/Car-Insurance-Premium-730x411.png)
Source: turtlemint
3. Bundling
You probably have more than one insurance policy. For example, you may have two vehicles, house insurance, health insurance, and even life insurance. Talk to your broker or the insurance company about what discount you’ll get if you put all your policies with them.
They should offer a substantial saving, making moving car insurance companies a simple decision. Of course, you still need to verify the cover is adequate.
4. Reduce Your Cover
It is possible to take the basic level of car insurance and still comply with the law. In some cases, this may be all the cover you need. For example, if you have a car that hasn’t got a high value, you can drop comprehensive cover and even fire and theft. You’ll be left with a substantial cheaper basic option. But, this should be more than adequate for most situations.
Don’t forget you have to pay a percentage of a fault claim, that’s your excess. If this makes it pointless getting an insurance payout you won’t need comprehensive cover.
![](https://thefrisky.com/wp-content/uploads/2019/03/car-warranty-730x438.jpg)
Source: retirementliving.com
5. Discounts
There are several businesses that specialize in supplying discount codes. These are codes that have been verified as genuine and can save you money on your car insurance. You’ll find discounts on the insurance company site, comparison sites, and dedicated discount sites.
Check them all to see if any of the codes can be used by you, they could save you a significant amount of money.
You should also ask your broker what discounts are available. They will generally provide additional discounts to people that have been long-standing customers or those who have multiple policies with them.
It’s worth enquiring and even considering moving other policies, providing the cover is the same and the overall cost is less.
6. Increase Your Contribution
Every insurance policy details how much you are liable for in different claim circumstances. These figures are not set in stone. You can increase the amount you’ll contribute in the event of a claim, this should reduce the amount of your policy. Of course, you need to be comfortable that the higher level is affordable to you, especially if your car is written off.
For example, increasing your contribution to $1,000 isn’t advisable if your car is only worth $1,000 because, in the event of a fault claim, you would get nothing.
![](https://thefrisky.com/wp-content/uploads/2019/01/63198140.cms_-730x512.jpg)
Source: ET Auto
7. Low Mileage
Most insurance companies will offer you a discount if you drive under a certain mileage or don’t drive at night. You will need to adhere to their conditions, such as photographic proof of the mileage or a car tracking system. This will ensure you stay within the agreed limits.
If you don’t the premium will rise or the policy will be invalid. But, if you agree and adhere the savings can be substantial. Just make sure the policy conditions are realistic for you.
8. Keep An Eye On Your Credit History
You may not realize it but if you choose to pay for your insurance monthly the price of the policy will usually change according to your credit history. Of course, you expect to pay a small fee for the privilege of paying monthly. But, that small fee will get bigger, the poorer your credit history is.
To save money when paying for car insurance monthly you need to maintain a good credit history. If that isn’t an option you’ll need to find a company prepared to give you installments at no charge. The alternative is to find a way to cover the insurance cost in one go, for most people that’s not an easy option.
![](https://thefrisky.com/wp-content/uploads/2018/12/What-Does-Car-Insurance-Cover-Story2-730x486.jpg)
Source: bbc.com
Final Thoughts
The best way to save money is to shop around using a comparison site. This will help you to find comparable cover at a reduced rate. Of course, the other methods above can help you to save more money. But, a comparison site doesn’t just save you money. It makes sure you’re aware of all the other options, allowing you to make the best choice for your own situation.