Top 3 Ways To Save On Car Insurance

Comprehensive car cover is a must-have for some of us but it’s far from cheap, so it makes sense to look for ways to save.

You can save hundreds in some cases by paying at a certain time, or a certain way, and you can also save by knowing some of the more common myths about car insurance.

The Insurance Council of Australia’s figures here show that premium costs on average have stayed below the CPI from 2001-2015 but there are still simple things you can do to keep the cost down.

Here are 3 quick ways you can save on Car Insurance that we have come across in our research

1. Money Magazine’s Effie Zahos suggests you pre-pay your annual premium up front as it’s often cheaper than making 12 monthly installments. Also, most insurers offer a discount if you arrange and pay for cover online. One insurer offers a discount of $100 and while another offers a 25% discount off the premium for paying this way.

2. Many people think they have to wait until their policy expires to change insurers but some companies offer an early shopper discount to drivers who arrange and pay for comprehensive cover before their current policy expires. Money magazine compared a comprehensive policy on a 2012 Nissan Navara for cover starting on the day of the quote ($473.93) to prepay the same vehicle six weeks before cover with another insurer expired ($356.51), a saving of $117.32.

3. Drive Less Pay Less insurance is available to people who drive less than the average for their age and postcode. Your insurer will ask how many kilometres you drive each year. They will then let you know if you qualify for Drive Less Pay Less insurance and provide a quote. They'll ask for your current odometer reading and once you're insured you can choose to increase your kilometre range (you'll need to pay for the extra distance). If you need to make a claimonce you have gone over your agreed kilometre limit, you will pay a higher excess as shown on your Certificate of Insurance.

Pro's and Con's: Remember, discounts shouldn’t be the only reason for choosing an insurer. Other issues to take into consideration include the value you can insure your vehicle for, the quality of the company’s claims service and whether you can transfer a no-claim bonus from your current insurer to the new one. Click here to see our earlier article on car insurance savings tips.

FiftyUp Club Pty Ltd (ACN 166 905 175) is a Corporate Authorised Representative (AR number 465649) of One Big Switch Pty Ltd (ACN 150 963 474) who holds its own Australian Financial Services License (AFSL 455982) and can provide you with factual information and general advice only. If in doubt about your personal situation or needs, you should seek financial advice.