Compare car insurance each year to keep costs low

Aussies coming to the end of the term of their vehicle cover may want to consider going online to compare car insurance, as this is an effective way of reducing premiums over time.

Many might be tempted to opt for the simplest solution, which is to renew a policy with an existing provider, but those that do so may be missing out on significant savings.

Before taking out a policy, it is important to see the various deals available, but this principle should be applied before an old policy is renewed.

Those intent on remaining with their current provider may be able to leverage a better deal if they can identify better offers from competitors.

Also those that compare car insurance may find that alternative policies have other provisions and terms that fit more closely with their needs.

For example, some might cover replacement vehicles while the insured one is being repaired, while others may feature breakdown cover.

Chief executive of the Motor Traders' Association of New South Wales James McCall told the Sydney Morning Herald that drivers are increasingly keen to test out new machines when considering a purchase.

Motorists may benefit from applying this care and attention to detail when they are selecting their insurance, as it could end up saving them money.

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