Drivers must ensure they are not 'underinsured'

Plenty of Aussie motorists are needlessly throwing money away each year by failing to compare the cheapest car insurance deals available to them.

By using a comparison website, drivers can easily see which providers offer the most affordable rates.

However, people sometimes find premiums that seem too good to be true and on occasion, they are.

While it is always vital to search for the best price, it is also crucial to note that some insurers promising bargain rates may not be offering you the same level of cover as more expensive firms.

Before signing up to a policy, check all of the terms and conditions to ensure you are not paying for a package that will leave you underinsured. Those who fail to do this could face huge costs if they have a crash and the insurance company refuses to pay out.

A high proportion of car insurance claims are made following minor bumps on car parks, so those looking to avoid losing their no claims bonus should drive particularly carefully in these places.

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