Cheap Car Insurance
Find affordable car insurance options online to protect your car.
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Car insurance is a must-have for all drivers, with a few different types and a bevy of insurers and policies to choose from. Ensuring that your car insurance policy is cheap and affordable can save you a lot of money in the long run, so it’s one of the areas you should always keep an eye out for. In this comprehensive guide, we look at how you can find and compare the cheapest and best car insurance to suit your needs. Read on to find out more.
How can I gain access to a cheap car insurance policy?
There are a few ways in which you can minimise the amount you’ll have to pay in premiums on your car insurance. The main aspects of this to bear in mind are knowing where to look and knowing methods for making yourself an attractive customer to insurers. Being able to search in the right places for car insurance and increasing your suitability for a great car insurance policy will help you gain access to the best car insurance deals on the market.
Look in the right places
Trying to find a singular cheap car insurance policy in Australia that suits your needs can seem like a daunting task with the wealth of insurance providers flooding the market. That’s why it’s always important to research as much as you can on different insurers to get a gauge on what sort of pricing you might be looking at.
If you’re overwhelmed by the sheer weight of insurers and policies on offer, online comparison tools can help you find the cheapest and best car insurance quotes for your needs, allowing you to filter your results based on the factors important to you.
Buy a car that’ll be cheap to insure
There are cars on the road now that are much easier to insure than others, which, if you’re in the market to buy a car, should certainly be a consideration for you. When it comes to safety ratings, the safer the car, the cheaper the car insurance. Each new car will come with an ANCAP or UCSR safety rating of between 0 and 5 stars, with those ranking the highest generally contributing to a lower insurance premium.
Additionally, the make and model of the car will play a large part in determining how expensive it’ll be to insure. Manufacturers based in or closer to Australia will generally be more accessible for repairs and cost less for replacement parts than imported cars from Europe, for example.
More luxury cars or sports models, by the same measure, will be more expensive to source replacement parts for given their increased cost. In terms of models, family-sized sedans or station wagons which are less focused on speed and performance and are generally designed with safety in mind will almost always be amongst the cheapest cars to insure.
Park your car in a safe spot
It may not always be possible, but where you park your car will have quite a significant impact on the amount you’ll have to pay for your premiums. Having your car on the road overnight leaves it at greater risk of theft or damage than if you have access to a carport or garage to lock it in. Insurers will take that into account when calculating the premiums on your insurance policy, so taking advantage of safer carparking facilities where you can will make a difference.
Also, insurers will have a list of suburbs or areas that are more prone to crime than others, so parking your car on the road in one of these will hike up your premiums further. Even parking your car in a garage in these areas will be likely to result in a greater outlay on premiums, so try to be wary of insurer’s policies when it comes to insuring around where you live if possible.
Limit the number of drivers listed on your car insurance policy
If you’re entering your car insurance application with a host of different drivers to be covered, your insurer will almost certainly raise the price of premiums beyond what it would’ve been if you were the sole driver. Also, drivers under 25 years of age typically attract a much more expensive car insurance policy than more experienced drivers, as they are considered at greater risk of being involved in accidents or making a claim than most other drivers.
Preventing your child from being listed on your car insurance policy will save you considerably over the course of a year. Take a look at the table below to see how much of a difference age can make in the car insurance process with some estimates for different age ranges for drivers.
| Type of cover | Yearly premium |
|---|---|
|
Driver age 20 |
$2,000 |
|
Driver age 40 |
$1,000 |
|
Family plan with 20-year-old drivers |
$2,200 |
Cut down on your driving as much as possible
Another simple calculation that insurers make is that the more you drive, the more chances you have to be involved in an accident or sustain or cause damage that leads to a claim. Because insurers encourage their customers not to make claims through schemes such as no claim discounts (NCD), they’ll be more incentivised to offer you a cheap deal if you’re able to minimise your risk on the road by reducing the kilometres you drive on an annual basis. It may not be possible for you to do this if you face a long commute to and from work, but if you are, it can make a big difference. Even catching public transport one or two days a week will slash your time on the road by up to 40% over a year, not to mention save you a lot on fuel.
Look for car insurance discounts
While opening offer discounts on car insurance can actually cost you money in the long term if you’re not careful, some introductory prices can save you quite a lot on your car insurance. The key is to be careful with these, and if these introductory rates turn into more expensive policies, you can always switch before experiencing the price hike. However, the one to keep your eye out for is the NCD, as mentioned above. This rewards drivers for not making any claims on their policy for periods typically up to 5 years, offering anywhere between a 20% and 70% discount on your premiums if you max out this time period. Driving responsibly pays and doing so with a NCD in your policy can save you hundreds in just 12 months.
Is the cheapest car insurance policy always the best?
No – while the price of premiums will obviously play a major role in your decision, you should hand equal, if not greater, weighting to the coverage you’ll receive on your policy. This refers to the types of damage that you can be reimbursed for in the event of a claim. This will, in large part, depend upon the type of car insurance you choose to go with between Third Party Property Damage insurance, Third Party Fire and Theft insurance and comprehensive car insurance.
| Type of car insurance | Price range | This type of car insurance covers… | This might help people who… |
|---|---|---|---|
|
TPPD |
Low |
Damage sustained by another vehicle or property which you’re liable for –
Legal liability for damage sustained by another vehicle or property.
|
Own a low-value car and want to pay cheap premiums but would like coverage for any accident damage caused to someone else. |
|
TPFT |
Medium |
Damage sustained by another vehicle or property which you’re liable for.
Damage sustained by your car caused by a fire.
Damage sustained by your car caused by attempted theft.
Loss of your car due to theft.
Legal liability for damage sustained by another vehicle or property.
|
Own a low-value car and want to pay cheaper premiums but want greater coverage for potential damage to their car. |
|
CCI |
High |
Damage sustained by another vehicle or property which you’re liable for.
Damage sustained by your car which you’re liable for.
Damage sustained by your car caused by a fire.
Damage sustained by your car caused by attempted theft.
Loss of your car due to theft.
Legal liability for damage sustained by another vehicle or property.
|
Are looking for the most far-reaching coverage of any insurance plan, particularly those who own mid-range to expensive cars, and are willing to pay more in premiums to do so. |
Which insurance provider should I choose for cheap car insurance?
You’ll probably find that there are two main types of insurance provider that you’ll encounter when searching for cheap car insurance: budget online insurers and more traditional, premium insurers.
Budget insurers are simple and effective; they’re no frills and can often offer you great deals on your car insurance. These are generally more suited to people with simple car insurance needs, particularly those who own a less valuable or more standard car brand or model. Budget Direct, Coles and Youi are all examples of prominent budget insurance providers.
Premium insurers are generally more suited to those whose needs are more complex when it comes to car insurance. If you own a particularly valuable car, for example, you’re probably better off buying a policy from this type of insurer. CGU, SGIC and QBE all fit the mould of a premium insurer.
Types of car insurance you can choose from
The most basic type of optional cover available, TPPD insurance can offer protection for damage caused by your vehicle to other people's property. However, no damage to your vehicle will be covered.
A step up from TPPD, TPFT insurance can also cover damage to your vehicle sustained due to a fire or theft (or attempted theft) in addition to third-party property damage if you're in an at-fault accident.
The most extensive (and expensive) form of cover, comprehensive car insurance can also offer cover for damage to your vehicle in an accident, collision and certain weather events on top of the areas TPFT covers.
Any other questions about the cheapest car insurance?
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Disclaimer:
Savvy (ABN 78 660 493 194, ACR 541 339) provides readers with a variety of car insurance policies to compare. Savvy earns a commission from our partnered insurers each time a customer buys a car insurance policy via our website. All purchases are conducted via our partners’ websites. The integrity of our comparison service is unaffected by our partnerships with those businesses and our effort remains to bring further brands that do not already use our comparison service onboard.
Savvy’s comparison service includes selected products from a panel of trusted insurers and does not compare all products in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy. We always recommend readers to consult the Product Disclosure Statement (PDS) of different policies before purchasing your car insurance.
