When was the last time you looked at the insurance policy on your car? Have obtained a renewed quote in the last 12 months? Have you done any shopping around at all since your initial insurance policy?
The truth is, most people don’t. When it comes to car insurance they just set and forget, not realising that they could be saving themselves hundreds of dollars a year – potentially even for a better, or more suitable policy!
I fully understand the real costs associated with car ownership, and they can be significant, so I’m a big believer in making sure you’re getting the best deal every step of the way. When it comes to insurance, I’ve put together the following tips which, according to Canstar, will save the average person approximately $350 per year!
- DON’T AUTO-RENEW
If your car is a few years older than on your last insurance quote, you may be surprised what others are willing to offer. Take the time to shop around each year.
- PAY YEARLY, NOT MONTHLY
Most insurers will charge a little extra for the administration of billing monthly, rather than annually. It may not seem like much, but all of this adds up to real savings. So plan ahead and save.
- PURCHASE ONLINE
In an incentive to use less customer service and sales staff, most companies, including insurers, offer a discount for self-serving your policy online. In many cases, it can be as much as $50 a year.
- VARY YOUR EXCESS
This one isn’t for everyone, however if you’re not prone to many incidents it could be a great cost-saver for you. Basically, you choose to pay a larger excess should you make a claim, which lowers your annual premium.
- PACKAGE YOUR INSURANCE
If you have home and contents insurance, or a partner or spouse with insurance, most insurers will offer a discount if you bundle it all with the same provider. If you haven’t already, ask your current or prospect providers for a discount based on all of your insurance being with them.
- DRIVERS OVER 25 ONLY
Again, this isn’t for everyone, if you have kids or friends under 25, or you’re under 25 yourself this isn’t an option. However, if individuals under 25 don’t drive your car you could get a greater discount. Since drivers under 25 are perceived to be at greater risk, many insurers will offer a further discount if you declare that no one under 25 years of age will be driving your vehicle.
- TAKE ADVANTAGE OF YOUR PARENTS’ INSURANCE
A little known fact is if you previously had your name on your parents’ policy and it’s now time to take out your own, many insurers will recognise your years of no claim bonus and add that onto your new policy — potentially saving you plenty — so be sure to ask.
- CHOOSE EXTRAS CAREFULLY
All those little extras, like one excess-free windscreen repair, hire cars and towing, are great options, but they also add up. Consider which options you really think you’re likely to need and ditch the rest to save on the premium.
- ADD SECURITY
Fitting an alarm, immobiliser or always parking in a garage all help reduce the risk of theft or vandalism and hence usually reduce your premium.
Running a car can quickly become expensive; maintenance, insurance, fuel, registration – the list goes on! Saving a few hundred per year on just one of those items can make a massive difference over the lifetime of your car to how much dosh you fork out.
For more money saving tips on your car checkout this nifty bite-sized infographic How To Save 3000 A Year On Your Car.
Read more car stories and advice from our motoring expert Janelle Gonzalez: