- Posted 09 Mar
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Before you rush out and purchase a new car or upgrade your existing used car, it’s important that you get your car insurance sorted first.
You want to find a car insurance that will suit your needs and also be affordable, particularly if the car you’re looking at is a considerable upgrade on your current vehicle.
Consider the following points before getting your new car:
What type of insurance do you really need?
Before you start the process of buying a new car, it’s important that you also understand the type of car insurance you’ll need.
Often, your driving history and the vehicle type you’re looking to buy will play a significant part in the type of insurance you’ll need, so understand what that is before moving on to the next point.
We say this time and again, if you haven’t done your own due diligence before making a major investment, then how can you be certain you’re getting the best deal?
The same can be said for car insurance, which is why it’s important to look at your options and read reviews on potential insurance companies before you sign on the dotted line.
Just as you should research insurance companies, you should also compare insurance policies and quotes.
Make sure you’re comparing apples with apples and don’t forget to read the fine print on policy documents. Sometimes you’ll find that one insurance company provides more cover on an aspect that another doesn’t. This is why it’s important to know what type of cover you need from the get-go.
Make sure you understand what the monthly commitment is as well, so that you’re not surprised when the first premium comes out. Look at your budget and make sure it fits within your means.
Review the excess
If you really want to reduce your insurance costs, increasing the amount of excess you have on your policy is the fastest way to do this.
Often, the more you pay in excess, the cheaper your monthly premiums will be.
You just have to keep in mind that if you need to make a claim on your insurance policy, that you will be liable for this excess, so you have to balance that out with whether it’s worth it or note.
Car insurance is designed to protect you against the unexpected, so while there are ways to reduce your premium, you shouldn’t be reducing your cover.
If you need help with securing the right car for your needs, contact the team at Australian Credit and Finance today.