5 signs you’re paying too much for car insurance

  • Posted 16 Apr
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5 signs you’re paying too much for car insurance

When it comes to owning a car, the cost of running and maintaining the car are not the only factors you need to consider. You also need to consider the amount car insurance is going to cost you. Car insurance can be expensive, particularly if you are purchasing a new car. But it can also be costly for older cars too. 

Australian Credit and Finance understand this, which is why we’ve come up with five things you can do to reduce your car insurance premiums.

 

5 signs you’re paying too much

 

You prefer a low excess?

 

This is one of the quickest ways to see an immediate reduction in your premium. Your excess is the amount you pay before your insurance provider makes any payments. By doing this, your insurance premium drops because you are taking on more of the financial responsibility. Be careful though; don’t increase the excess to an amount you can’t afford should an accident happen. If you’re unable to pay it, then you won’t be able to access your insurance either.

 

You’re insuring a brand new ride?

 

The minute you purchase a high-profile car, such as a turbo-charged vehicle or V8, your premiums will be extremely high. Try to buy Australian made vehicles as well, parts are far easier to come by and there are more people qualified to make repairs. If you purchase a European car, you might find it difficult for parts to be found, which can make any repairs quite expensive, which is then factored into your overall car insurance premium. Unless you can afford the expensive premiums, opt for a modest car with good maintenance history and readily available spare parts.

 

You haven’t combined any policies?

 

If you own your own home, or are even renting, it makes sense to combine your home and contents insurance with your car insurance to access discounts on premiums. As a family, if you have multiple cars, make sure you also have combined policies, as this will also reduce your premiums.  Generally, you can save anywhere from 10-20% by doing this.

 

Do you park just about anywhere?

 

Most insurance companies will provide a discount if your car is not parked on the road, but in the garage instead. You’ll also be able to access further discounts if the car is fitted with a professionally installed alarm or engine disabler

 

Have you proved you’re a reliable driver?

 

Some insurance companies will offer further discounts if you can prove you’re a good driver. You can also access more discounts if you only drive the car a certain number of kilometres each year.

The key is to getting as many quotes as possible to compare and also asking questions around what discounts are offered. Each insurance company is different, so it pays to do your research.

At Australian Credit and Finance, we can help you with your vehicle insurance. Simply contact us today to discuss your options.

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