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.
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.
Quite often car insurance providers will give you a discount for purchasing an insurance policy online. For example, new customers are offered a 25% discount* if they buy Australia Post's Gold Comprehensive Car Insurance online on or after 26 March 2015.
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.
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.
- * This online discount offer only applies to the premium paid for a new Gold Comprehensive car insurance policy initiated on or after 26 March 2015, and purchased online. The discount is taken from the premium that you would pay for a Gold Comprehensive motor vehicle insurance policy when a quote is obtained over the phone. Base rate premiums are subject to change. It does not apply to any renewal offer of insurance or fees (as outlined in the Financial Services Guide (FSG) (316kb)). You will be responsible for all applicable GST and other statutory charges. We reserve the right to shorten or extend the period the discount is offered and vary the amount of the discount.
- 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.