source:SEIACar insurance for many people is a necessary evil. The long road to achieving a Rating 1 insurance rating is fraught with danger. Rating 1 means you are paying the least amount of insurance possible. Before you achieve that rating there are steps you can take to help you reduce your on-road costs. Here are tips to save money on your car insurance.
Be a woman, be older or be both
It’s a fact women are less likely to be in car accidents than men. Young drivers are also more likely to be in car accidents than older drivers. The effect is exaggerated further as young men are penalized much more than older women. If the primary insurance holder is a older woman then the insurance premiums are likely to be lower. If the primary insurance holder is a young man then the insurance premiums are probably at the highest level they can possibly be.
Be a better driver, take advanced driving courses
Take a recognised defensive driving course after getting your licence. This is a good step to getting cheap car insurance. These courses teach advanced driving technique, planning and control. These are characteristics that auto insurance companies see as weaknesses in novice drivers or drivers in certain categories. It is particularly advised for males, under 25 years old, living in urban areas, holding an open licence for less than 2 years. This particular demographic is stung heavily by car insurance companies. This kind of course is highly advantageous to you in reducing your premiums and becoming a better driver
Increase your excess
You can lower your premiums by increasing your excess. The excess is the lump sum you pay in the event of an accident. If you are confident of your driving ability and are sure that you will not need to make an insurance claim then this is a good avenue to explore. Some car insurance companies have flexible excesses. As an example, if you increase you excess from $400 to $800 you premiums can be reduced significantly and by up to 50% in some cases.
Drive a less powerful car
There is no denying that powerful cars demand higher insurance costs. Is that desirable V8 car really necessary? Desirable, powerful cars are always the target of car thieves. Insurance companies factor that risk into your premium. That is why your premium is high. It does not matter if you are over 30 and have a clean record. The insurance company is not focusing on you but on the criminal in this instance.
Take out multiple insurance policies with the same provider
Most insurance companies in Australia run a loyalty scheme of some description. You can reduce significant amounts from your car insurance, if you also have home insurance, life insurance and travel insurance all with the same company. Your premiums for every insurance can be reduced by up to 20% and further if you qualify for no claims bonuses or other concessions. Let’s face it, you are paying less money, ultimately for more piece of mind.
