Estimating Car Insurance Costsand How To Reduce Them

Car insurance in Australia is not dirt cheap, and unless you own a sports or luxury car, insurance premium comes with a price. So how do you exactly get cheap car insurance in Australia? Here are two cents’ worth in estimating and reducing your car insurance costs.

There’s something about your car

Before a quote was given, insurance companies will have a few questions about your car – its make, model, type, with fitted modifications, etc. Premiums depend on the market value of the vehicle to be insured, so the insurance rate on your Maserati will be more expensive than the one on your Honda. Insurers will also ask where is your car parked (in the garage, along the street), whether is it used for business besides for personal commuting, financing through loan or lease, etc. Well-covered vehicles, especially parked in their own garage, are less prone to theft, vandalism, and damage caused by the weather, thus reducing the need for higher premium. Cars with less mileage, if used in personal commuting but not daily, could fetch lower rates.

Insurers also consider the named drivers of the vehicles, their age, driving history, and experience, among others. Adding younger and inexperience drivers, especially ones with previous involvement in an accident, could also jack up your premium.

How do you like it covered?

Insurers offer various coverage options that you could tailor-fit according to your needs. Comprehensive car insurance is the highly recommended choice since it covers repairs to your car and other damaged vehicles when you are at fault. Standard insurance such as the third party only pays for the damages to others’ property. Meanwhile, third party fire and theft offers the same benefit as the third party, but with added coverage if your vehicle is stolen or burned, similar to a comprehensive insurance.

Optional benefits could also be factored in your insurance rate, including accident hire car and roadside assistance, but at the right price.

Bear in mind that the car insurance market is highly competitive so ensure that you’ve diligently compared and checked quotes to get the cheapest rate, either through online or via an agent or broker. In addition, insurers offer discounts to their clients so never hesitate to ask if there is one. Lastly, settle your insurance premium annually, instead of monthly or fortnightly, because this is cheaper in the long run. A yearly premium of AUD528 will be AUD50.40 and AUD23.63 monthly and fortnightly, respectively.

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