10 ways to get cheap car insurance in Australia

What are the 10 ways to get cheap car insurance in Australia?

Handy Guide on how to get cheap car insurance in Australia.

All vehicles while driving the roads of Australia are required by law that they carry some level of car insurance. But for the fact that the cost of coverage rising constantly, many car owners ask , “How and where can I get cheap car insurance in Australia?” 

In this article we answers this question along with more.  In addition to sharing practical tips on how to slash your car premiums, we will discuss the factors dictating insurance rates, where you can find the most affordable coverage and the different types of policies that you can purchase.

Since each driver’s profile and situation vary, there is not a straightforward answer to suit all drivers. Based on a person’s overall risk level Insurers calculate car insurance premiums. The insurance company that offers you cheap car insurance may be the most expensive option for another.

In order to help drivers find ways to access cheap car insurance in Australia, we compiled several practical tips and advice from industry experts. Here are the top 10 premium-reduction strategies that we compiles.

1. Keep your driving record spotless.

What is among the most effective ways for you to get affordable car insurance premiums is maintaining a clean driving history . A good driving record shows that the low your likelihood of getting into an accident, the less it will cost them to insure you. We suggest always to take safety driver courses to lower risk level. You will be taught there  situational awareness and proper response to emergency situations, which can make a driver appealing to insurers.

2. Purchase only the coverage you need.

There are a lot of policyholders and a lot of coverage options, picking the right policies that match your needs can be sometimes challenging. Sometimes you may be tempted to purchase optional extras, but remember that these add-ons have a corresponding effect on the premiums that you pay.

First assess your needs before buying additional coverage. Sometimes, a basic plan may provide sufficient coverage and will not cost much. An experienced agent or broker can help steer you in the right direction if you’re finding it difficult to find out which policies suit your needs.

3. Be strategic about what you claim.

Each claim you make will have a corresponding impact on your premiums when it comes the renewal time. You can protect your risk rating and future rates being strategic in your claims. Most insurers also offer policyholders having a spotless claims record with no-claims bonuses. After five consecutive years this type of discount can slash up to 70% off your annual premiums . If you know beforehand when to make claim, it can help you get cheap car insurance in Australia.

4. Pay for your premiums annually.

Paying for your premiums in one lump sum instead of in monthly instalments is another practical way to access cheap car insurance in Australia. As you will surely be charged interest and finance arrangement fees, you get some experts equate monthly payments to paying for a loan.

Keep in mind that there are some car insurance providers who allow policyholders to pay monthly at no extra cost. These insurers may be worth considering If you’re one of those who budget their finances month-to-month.

5. Increase your excess but remember one thing.

A higher excess means lower premiums.  This also increases the amount you need to pay out-of-pocket if there is an accident or theft. Keeping the excess amount to a manageable level is the key to this strategy. You may be able to afford more risk and take advantage of this strategy provided that you are confident about your driving skills and generally a safe driver.

6. Keep your car secure.

Insurance companies want that you keep your car secure when you take measures to improve your car’s security. This will result a typically reward to you with discounts for doing so. By installing anti-theft devices is one of the ways among the most effective means of keeping your car secure. What these include are installing alarms, immobilisers, and steering wheel locks.

Parking car in a secure location, such as a closed garage is the one way that can help if your  car or vehicles left out on the street which are more vulnerable to theft, a careless driver,or vandalism.

7. Bundle insurance policies.

When you take out two different types of policies with them, some insurers offer multi-policy discounts, for example, bundling your car insurance with your renters’ or homeowners’ insurance. If you insure more than one vehicle with your insurer, you can also access multi-vehicle discounts  as long as these vehicles are registered to your household.

Be sure to check prior to taking this route whether you are really getting better value or if splitting up your policies with different insurers , however, this leads to cheaper premiums.

8. Switch to a cost-efficient vehicle.

In order to get a cheap car insurance, the choice of vehicle plays a key role in Australia. If you pick a car that is  easy to repair and source parts for, it can help lower your premium costs. As some vehicles that cost less to purchase can be expensive to repair, though some experts warn against looking at just the car’s market value.

9. Minimise the distance you travel.

If you drive less than 10,000 kilometres per year, some insurers will provide you with discounts because driving less also reduces the likelihood of you getting into an accident. You can also use public transportation to drive down your mileage further if possible.

Pay-as-you-drive policy is another option to choose which is cheaper and more suited for people who don’t drive often.

10. Do not let your car insurance policy auto-renew.

Experts recommend that you renew every year because reviewing coverage and shopping around for a better deal is something that this allows you to find a happier policy.  It can also help determine in such situation where you’re still getting value from your current car insurance.

There are insurance providers that will match or even beat their competitor’s rates to win clients, that's why some experts recommend that you be on the look-out for special offers.

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