There is no other choice than having the basic auto insurance today, since every Australian has to have CTP (Compulsory Third-Party) insurance by law. However you also need to get comprehensive car insurance and/or an extended warranty, e.g. Mitsubishi extended warranty coverage, together with CTP insurance, as a car accident can even put you into severe debt if you are not sufficiently covered. If the additional cost is your concern, you can definitely have the option of choosing only the minimum needed insurance. However, you better understand that comprehensive car insurance is actually affordable or you can make it affordable by following these rules.
1. Make a Comparison of Rates
Rather than choosing the very first option you come across, it’s always wise to find the rates of all insurance companies in your area and compare among them. Make sure that you compare apples to apples, and not go only for the lowest rate. Also, comparing the rates for new as well as used cars is also important. Also, there may be two or more cars you are considering, but one may be much costlier than the other to insure.
2. Find Out if There are Discounts
Special safety features like anti-theft features or anti-lock brakes may be eligible for a discount in insurance. Has the car you are considering these types of features? If it has, mention this in the form you are filling out for an insurance quote and see if you can take the benefit of a rebate. Another thing which can bring you a discount is a defensive driving course.
3. Increase Your Deductible
This is an easy way to bring down your rate provided the higher amount in case of an accident is affordable to you. Because many people prefer to pay for minor accidents on their own, their insurance price doesn’t go up. So, it is sensible to choose a higher deductible; but it also should not be so high that it will put you in debt.
4. Reduce Your Coverage
Certain things that are covered by your insurance are actually not needed by you and you can get without them. For example, if you are insuring an old car, you may wish to cut your collision coverage. Also, additions like car rental or roadside assistance are good options, but are not essential for the insurance.
5. Safe Driving
Those who were guilty in an accident can have their insurance premiums sky-high. In some such cases, premiums even increase by 30% to 40%. Therefore, it’s advisable to focus on the road and drive safely, instead of getting involved in your mobile phone or tablet. Even traffic tickets can increase your premium; so, follow traffic rules and speed limits carefully.
6. Driving Less
Insurance providers also offer low-mileage discounts. If you don’t take many long drives, you can save a considerable amount on your insurance premium.
7. Good Credit
Because good credit typically refers to less risk of having a claim, insurance companies tend to offer discounts on a solid credit history. Be keen in tracking your credit reports and invite insurance quote just when your credit is at its best.
8. Choose to Bundle Insurance
Choosing the same company for your car insurance as well as for other insurance like home, life etc can save you a lot of money too. This is because insurance companies can’t leave the chance of showing their gratitude towards loyal customers. So, the more number of insurance policies you have with a company, the higher will be the discount they offer.
9. Keep Shopping Around
You should keep shopping around and you may find the best deal. For example, take a look at the latest policy for Allianz comprehensive car insurance from Warranty and Insurance, and you may find many good features suitable to you.
Follow these tips and you can save a significant amount while getting the best features for your car insurance.