You've successfully subscribed to Car Next Door Blog
Great! Next, complete checkout for full access to Car Next Door Blog
Welcome back! You've successfully signed in.
Success! Your account is fully activated, you now have access to all content.
Success! Your billing info is updated.
Billing info update failed.

How to get cheap comprehensive car insurance

Wanting cheap comprehensive car insurance, read our easy suggestions. Are you a low kilometre driver or a low-risk insurer? You can lower your costs easily.

Shannon Barker

Here's the thing...

...finding cheap car insurance is not always easy, but it's a great feeling to find a way to save moeny on your car insurance.

Do you want to know how your insurance premiums are calculated and our tips for lowering them?

There’s even a way that you can earn money from your car, offsetting the cost of your insurance, rego and running costs!

How is my car insurance calculated?

The amount of insurance you pay is determined by a number of factors, some within your control - such as your choice of car, your driving history, accidents you have been in and some out of your control - such as your age and gender.

Essentially, insurance companies look at you and your vehicle, compare it to historical data they have to calculate the “perceived risk” of insuring you. The riskier they think you will be, the more you pay to be covered by them.

But there are tricks to reducing your costs, even if you are under 25, and whether you are looking for car, SUV, ute or van insurance.

Key factors to reduce your car insurance

  • Do your research
  • Driver restriction - Who can drive your car
  • What kind of vehicle you choose
  • How often you drive
  • Where you park your car
  • Your insurance excess
  • Under 25’s car insurance options
  • Bundle multiple insurance policies

Do your research

It shouldn’t come as a surprise in 2018, but spending some time doing a cost comparison is really important. You can use a number of car insurance comparison sites such as Comparethemarket, Budget Direct, Canstar or iSelect. These are essentially the webjet of car insurance comparisons and will bring up a list of options for you to select from.

Other than that, we would suggest going to the insurance providers sites directly and filling out your details and your cars for a more accurate quote. It is a little more tedious, but it’s worth your time!

Driver restriction - Who can drive your car

If you really want budget car insurance make sure you specify who will be driving your car and who will or won’t be covered. If you don’t know anyone under the age of 25, or know that P-platers won’t ever be driving your car, remove them from your plan. Younger drivers are considered higher risk, and therefore raise your premiums.

Be aware though, doing this means that then if you ever did have someone under 25 drive your car and they crashed it you may not be covered. So choose wisely.

What kind of vehicle you choose

If you already own your car, skip this tip.

But if you are looking for a car still, being conscious of your car choice, as it will have an effect on your insurance cost…

  • Newer and more expensive cars will be more expensive to insure as they are more expensive to replace. They are also more tempting to steal from an insurer's perspective.
  • High power/fast cars. They are associated with more “hoonlike” driving and generally riskier driving behaviour.
  • Modifying your vehicle. Things that affect speed or handling are obvious, but you should also tell your insurance about other modifications such as protective bedliner coatings.

How often you drive

How often do you use your car? If you aren’t driving it regularly, you may eligible for a pay as you drive car insurance, which is aimed at low kilometre drivers. Since you are driving your car less often, there is a lower statistical likelihood you’ll make a claim.

Alternatively, if your car is just sitting around, why not put your car to work and rent it out to your neighbour?

Where you park your car

To get a lower car insurance premium, an insurance company will look at your “home” postcode. This is obviously out of your control, (unless you are moving) and some suburbs will be ranked as safer than others.

However, if you are able to park your car off-street, in a carport or garage instead of the street this may carry a lower risk and reduce your premium.

Remember, if your circumstances change you must let your insurance provider know!

Your insurance excess

Your excess payment is the amount you have to contribute when you make a claim. For example, if your car is written off in an accident, if your excess is $1000, you have to pay this before to “claim” your write off money.

The lower you have this set at, the higher your premium. If your excess is $1800, you are going to be less likely to make a claim and more likely if your excess was $500.

So your insurer may take this into account, and you should too when deciding what excess you want to set. Choose wisely, you don’t want to set your excess so high that you can’t afford it in an event of an accident.

Bundle your policies

If you already have insurance for home and contents, boats or pets, for example, you may be able to take up multiple policies with the same provider for a discount.

Under 25s car insurance options

There is no way to really sugarcoat it, the younger you are, the higher risk you are considered to be..but there is an alternative that may work better for you below!

Bonus idea! Sign up to rent out your car here

Rent Out Your Car With Car Next Door

If you don't use your car every day, renting it out with a peer-to-peer car-sharing service like Car Next Door is a great way to get your car paying for itself. The average car earns around $3,500 a year - that should go a long way towards covering your insurance costs!

Car Next Door's insurance covers your car whenever it's with a Borrower, so you don't need to worry about your preimum going up.

Learn more about renting out your car

You might also like

Please leave a comment below