Tips to help you get the best deal for your car insurance

Shopping for car insurance can seem like a daunting task at first. But like with most things, being thorough with your research and knowing how rates are determined can be a big help in saving money.

How your rate is determined

When determining your rate, an insurance company will take many things into consideration, including your gender, age, where you park, home-ownership, where you live, your driving record, how far you drive every year, and even what kind of car you’re trying to insure.

Did you know, generally speaking, female drivers aged 25 to 65 pay the least for insurance. Also, of all the car colours, white tends to have the lowest risk weighting when calculating premiums.

But if you aren’t a female driver or do not fall within that age range, there are still some actions you can take to lower your insurance rate. Buying an older and less flashy car will reliably lower insurance premium, as insurance costs tend to drop steadily as a car age.

It’s also worth pointing out that an older car might need more maintenance than a newer one, so factor that into your budget when making a decision.

Another tip, which seems pretty straightforward, is to drive safely. Don’t be reckless and get speeding ticket that may lead to disqualification, because that will affect your rate. Safe drivers tend to get rewarded by insurers.

Check how your home loan compares

Shop around

Nothing beats online comparison shopping for car insurance quotes. The more companies a car owner can compare, the more likely they will be able to find the best coverage for the lowest price.

There are a few ways you can do this. The first is creating a list for yourself, where you get individual quotes from each insurance company and compare them all. Or you can use an insurance comparison tool, which lets you compare personalised insurance quotes.

But regardless of how you shop for your insurance, you should comparing insurance premiums at every renewal to stay up to date on the best new deals.

Mileage-based insurance

It’s not for everyone, but if you’re someone who lives in a city and perhaps doesn’t drive very often, now find yourself working from home, or your employment situation has changed so that you don’t need to drive as often, you might want to check out mileage-based insurance.

The insurer may offer different discount tiers based on the kilometres you intend to drive during the insured period, they may ask you to provide pictures of your speedo when you take out the policy and if you happen to make a claim they will confirm you speedo reading again. In cases where you exceed the agreed distance tier, hefty excess will be applied by your insurer at time of your claim.

Finally, everyone’s situation is different. So, shop around and pick a policy and price that’s good for you and your family.

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This article does not constitute advice; readers should seek independent and personalised counsel from a trusted adviser that specialises in property, a tax accountant and property design specialist.