De-mystify the cost of car insurance

Ever been at a BBQ enjoying yourself only to find the conversation heading a little south? So far south you start discussing car insurance? If so, then you either need to get new friends or read on, so you can be in-the-know when it comes to the cost of car insurance.

It is not unusual for people to shop around and compare insurance policies against each other to ensure they know what they are getting. However, when it comes to how an insurer reaches a quoting price many of us are none the wiser as to what that price takes into account.

Car insurance pricing of course varies between insurers and the quote you are offered will come down to two main factors – your risk indicators and the level of cover you are purchasing.  

Some examples of risk indicators taken into account when preparing a quote:

  • Where your car is garaged
  • the age of all drivers on the policy
  • the type of car you are insuring, its value and type of security devices installed
  • your driving history, including recent insurance claims, licence suspensions or driving offences
  • whether you use your car for work

How to save money on car insurance 

Yes! There are a number of ways car owners can save money on their car insurance by improving their risk indicators prior to applying for a quote.

We’ve included some top tips to saving money on your car insurance provided by Canstar Research:

  • Fit an alarm, immobiliser or both. All improvements to security could help to lower your car insurance costs.
  • If possible, keep your car protected in a garage.
  • Check the amount of excess on your insurance policy. Higher excesses on car insurance may reduce your premium.
  • Review how you pay your insurance. Are you incurring any additional charges for paying monthly?
  • Remember that car modifications may increase your insurance premium or affect your ability to obtain insurance.
  • Let your insurance company know how many kilometres you drive. You may be eligible for a low-kilometre discount. 

While not all of these tips suit all drivers there is one thing we can all do and that is to drive sensibly. Not only will it put yourself, your family and others at less risk of an accident, you also may find that having a high number of claims (where you are considered to be at fault) could impact your insurance premium. 


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