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How to reduce your car insurance costs

Smart ways to save on your insurance premium

Car insurance providers consider a wide range of factors when they give you a quote, including age, gender, address and type of car. While there are certain things you can't change, such as your age, there are some steps you can take to reduce the costs of your car insurance premium.

Park securely

If you park on the street, your car has a higher likelihood of being stolen and will therefore cost more to insure. Secure parking, such as parking in a garage, will reduce the risk of theft and reduce your premium.

Safe driving rewards

Insurers will often reward you for driving experience and good driving records. Australia Post's 'No Claims Discount' (NCD) which is sometimes also known as 'No Claims Bonus' by other insurers is a scale used to reward safe and experienced drivers with a discount on their car insurance premium. For each year that you don't make a claim, you receive an additional discount on your insurance premium, up to a maximum of 5 years NCD (aka 'Rating 1').

Install a security system

Extra security may help reduce your insurance premium substantially. Consider fitting an alarm or immobiliser if your car doesn't already have one.

Online discounts

Quite often car insurance providers will give you a discount for purchasing an insurance policy online. For example, new customers are offered a 15% discount1 if they buy Australia Post's Gold Car Insurance online on or after 30 March 2017.

Avoid car modifications

Changes you make to your car that are not part of the standard vehicle specification including factory fitted optional extras, such as alloy wheels, can increase your premium. Quite often, modifications that enhance the car's performance can increase the likelihood of an accident or theft.

Increase your excess

The higher the excess you're prepared to pay, the lower the premium. If you're not concerned about paying for minor repairs, higher excess is a great way to save on car insurance.

Nominated drivers

Adding other drivers to your policy may be expensive, especially if they are 25 years or younger. If you have young drivers in your family, you may want to consider getting them their own policy.

1 Discounts apply to the premium paid for a new Australia Post Insurance policy initiated online on or after 30 March 2017. The discount applies to Gold Comprehensive, Third Party Property and Third Party Fire & Theft Car Insurance. We reserve the right to change the offer without notice. Base rate premiums subject to change. The discount does not apply to any renewal offer of insurance.

Australian Postal Corporation ABN 28 864 970 579 (AR No. 338646) "APC" is the distributor of Australia Post Comprehensive Car Insurance and acts as an Authorised Representative of Australia Post Services Pty Ltd ABN 67 002 599 340 (AFSL No. 457551) "APS". Because APC or APS don't know your financial needs, we can't advise if this insurance will suit you. You should consider your needs and read the FSG and Product Disclosure Statement (PDS) before making a decision to buy this insurance. Auto and General Services ABN 61 003 617 909 (AFSL 241411) "AGS" arranges the insurance on behalf of Auto & General Insurance Company Ltd ABN 42 111 5 86 353 (AFSL No. 285 571) "AGIC", the issuer of the policy. AGS pays APC a commission which is a percentage of your premium. Neither APC nor APS accept liability or guarantee payment of any claim or benefit in respect of the AGIC's products.