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.
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 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.
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.