5 ways you can lower your car insurance like a pro

Published on December 1st, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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Car insurance is a must to protect your wheels from any mishaps that can occur on the roads. If you want the best cover, which is comprehensive car insurance, it can come at a hefty price. Aussies are always looking for ways to save, and putting back that extra money into use elsewhere. Here are six useful ways you can lower your car insurance by thinking like an insurance agent.

Drive less

Insurers are concerned in terms of how likely are you to cause an accident on the road that will cost them a lot of money in pay-outs. There are many times where you drive your car to a place that is a walkable distance. If you work close by, or even live close by to a shopping centre then there will be no need to use your car. You could lower your mileage and exposure to crashing your car when walking and therefore lowering your premiums. It will also help you in terms of health benefits.

Shop for a better rate

If walking won’t cut it for you, then comparing rates can be your next bet. Car insurance premiums change every year. Compare your current premiums with other car premiums that are available for the type of car you have. Sometimes staying with one insurer can cost you as they increase their premiums every year. This also means that you could be missing out on some good deals that come around from other competitors that will help you save.

Choose your location wisely

Insurers look at where you stay to determine how much they would be charging you. If you live in busy cities like Melbourne where there are a lot of drivers that can possibly damage your car, it will cost more. However, if you live in the dingy parts of town that have poor road servicing or obstructions that can cause damage to your vehicle you must be ready to cough out more.

Insurers like safe

You might trust your own archaic car that gets you from A to B with a few tugs, pulls and desperate prayers behind the wheel. Insurers wont, even more so when if your car lacks safety rating features such as; airbags, automatic seat belts, and traction control to list a few. Owning a car with a high safety rating from the Australian New Car Assessment Programme (ANCAP) means that there are lower chances for your insurer to pay for yours or your passengers medical bills. This means lower rates.

Park it in a garage

This is an automatic display of, ‘come steal my car’ to thieves. This is a risk factor which can cause insurers to increase the cost of your car insurance premiums. Even if you do reside in a safe neighbourhood. You need to take other factors such as the possible damage that natural elements, or a hit and run on your car into consideration.

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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

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