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How To Pay Less For Car Insurance

10 Mar 2022

While car insurance is one of life’s necessary evils, is there anything you can do to pay less on your annual premiums without sacrificing the level of cover?

Your-Guide-To-Buying-Car-Insurance

One of the many responsibilities that come with vehicle ownership is car insurance. While policies range anywhere from being a free inclusion with your driver’s licence to right up into thousands of dollars in premiums, there’s a wide variety of factors that go into how much you should be paying for this kind of protection. 

In the world of car insurance, there are four types of car insurance that consumers get to choose from: Comprehensive, Third Party Fire and Theft, Third Party Property Damage and Compulsory Third Party Insurance (CTP). With the latter being considered as the bare minimum that provides cover against claims for compensation in the event that you injure or kill someone on the road, those who prefer comprehensive cover may even get perks like roadside assistance and free rental vehicles in addition to the standard inclusions.

Whatever the case, it’s fair to say that most of us would ideally like to pay less for car insurance. However, the good news is that getting discounts on these types of premiums might just be easier than you think providing you’re okay with negotiating and doing some research. 

Five Ways To Score Cheaper Car Insurance

According to the Australian Securities and Investments Commission, there are plenty of perfectly legal ways to save on car insurance premiums. While a few of the more common include driving safely and keeping a spotless record, there’s plenty of other factors that could score you a discount – even your gender, age, marital status and post code. Insurers are exempt from things that would normally be classed as discrimination, as they use statistics derived from accidents to justify policy prices. 

Remember that insurance providers are ultimately run as businesses. Like many other brands of this scale, insurers not only want to attract new customers, but to retain their existing ones as well. For tips on spending less on car insurance, we recommend giving the following a try.

Pay Your Premium Annually – While a handful of car insurance providers offer the same premiums regardless of whether you pay annually or monthly, a larger number do charge you more if you opt to pay your annual premium in monthly installments. If your budget allows this, it’s a great way to spend less on your premium in the long term. 

Choose A Higher Excess – In the event that you need to make an insurance claim, expect to pay an excess. Many people chase the lowest possible excess, but don’t realise that the price of this is often via higher insurance premiums. To lower your monthly or annual insurance fee, consider tweaking your policy to a higher excess fee to pay less overall on your insurance. 

Bundle Your Policies – It’s rare for most Australians to only have one insurance policy to their names. From home and contents, health and even life, bundling your insurance policies together with the one provider offers you the chance to access multi product discounts. Not all providers offer this service though, so do your research to see how you’ll be better off. 

Keep Your Car Secure – Insurance providers will commonly charge less for car owners who keep their vehicles in lock up garages as opposed to in driveways or on the street. In theory, this reduces your chances of being a victim of theft, and less likely to make a claim. You may also receive a discount if your car has security features such as an immobiliser or an alarm. 

Pay As You Drive – With many of us still working from home and going out less than usual, did you know that driving your car less could in theory see you save on your car insurance premiums? If you drive under a certain amount of kilometres per year – usually around the 10,000 kilometre mark – many providers will offer you a discount on your premium. 

In Australia, one of the best ways to access cheaper car insurance is the obvious one: stay accident free. Before making a car insurance claim, consider whether the payout is worth more than the potential loss of your “No Claims Bonus”. 

As a consumer, it’s important to be wary of comparison websites that filter car insurance products. Keep in mind that particular products or providers may be promoted or recommended more heavily than others because of commercial arrangements. As such, be sure to do your own thorough research when it comes to general inclusions, exclusions, and the fine print. 

How To Save Money On Your Monthly Bills

Kyco is a member based buying group that ultimately aims to save Australians money on their energy, health and insurance bills. The more members we have, the more negotiating power we have to arrange low, long-term deals with service providers.

Kyco doesn’t play one provider off against another taking commissions of up to 30% like most comparison sites. Instead, we’re leveling the playing field with a low 3% capped commission. It’s free to become a member, and with no lock in contracts or unexpected price hikes, spending less on your annual bills has never been easier. Join Kyco today and help make the cost of living more sustainable for everyday Australians.