Trying to save money? Driving down the daily dollar spend is no easy task, and it doesn’t help that car insurance is sometimes an exsy but necessary expense. Rest assured that the budget superhero team at Mozo are here to help!
We’ve scoured through the many car insurance companies in Australia to get a fair dinkum overview of the kinds of car insurance products available and what you need to do to secure the best deal. All you have to do is follow our tips to save save save!
Which car insurance will be better for me?
Although basic third party car insurance compared to comprehensive is the cheaper option, it will not necessarily give you the cover you need to get from A to B and back again without worry or hitch. Reason being, is that comprehensive car insurance will cover you for so much more.
Third party car insurance is just limited to covering you for damage you've caused to another vehicle or actual property, but it won’t cover you for damage you’ve caused to your car as a result of the accident if you were the at-fault driver.
Comprehensive on the other hand will not only cover the cost of damage as a result of you causing a car accident, but cover the cost to repair your car. And depending which policy you choose, it may even be enough to replace your vehicle and the third party vehicle if they’re deemed to be written off. But check the fine print before signing up so you know exactly what you’re paying for first. You don’t want to be caught out!
What car insurance essentials do I need to get me started?
After you’ve done your research and decided on which insurer best suits your personal situation, before giving them a buzz for applying online, you'll need the following information handy:
- Your driver’s license number - This will determine what kind of license you hold which will influence the price you pay for your car insurance. It will also show the insurer your driving history including offences and any demerit points lost which may also affect the amount you pay.
- Your age - Under 25? Expect to pay a higher premium for your comprehensive insurance. But rest assured. You’re still better off paying higher than if you were to simply purchase a basic third party property or no insurance at all.
- The VIN of your car - Displayed on a metal plate under the bonnet of your car or more conveniently on your rego papers, the VIN number of your car will tell the insurer who owns the vehicle and whether or not it’s a stolen vehicle. If you’ve purchased a second hand car, hopefully you’ve already done the checks on your vehicle before handing over the money. For more information on buying a second hand car, visit: [insert Mozo link on purchasing a second hand car guide].
- Your address - Unfortunately there is no one price for car insurance. Not only are the previous factors taken into account but the postcode you love in. Why? If it’s registered with a high crime rate then be prepared to pay more than your neighbouring suburbs.
- Type of car - The price you pay for your car is one thing, but the actual street value is another. The street value, age and any fancy modifications to your vehicle will have an impact on how much you pay.
Car Insurance tip 101
Parking your car in a garage will reduce the premium you pay saving you hundreds in the long run - even if your postcode is deemed to be a ‘high risk’ suburb. This is because if motor vehicle is housed safely in the protection of a lock-up garage,in the eyes of the insurer there is less of a chance for left or vandalism to your car.
How to avoid costly car insurance traps
Trying to secure the ‘cheapest car insurance’ sounds like we’re about to tell you all about a new no-name budget car insurance company. Well, we’re not. To secure the cheapest car insurance for you, is all about being aware of the various and sometimes obvious car insurance traps. Being aware of them will make you a more savvy shopper when it comes to researching and buying car insurance, so take the time to read on. Here’s what you need to know:
- On street parking - versus the garage. Sure we’ve talked about it before, but we’ll mention it again. If you’re lucky enough to have access to one, then you'll want to consider clearing out the things you’ve hoarded all these years, and start using it to protect your car. The result? A more zen environment and big bucks in your pocket from the savings on your insurance you’ll make. If Mozo’s guess is as good as yours, then that’s where the term ‘garage sale’ came from. So if you need to clear out the junk, rest assured you’re not the only one and there were plenty more households before you that had to clear out their trusty garage also.
- Late fees - did you know you can be charged a ridiculous amount for not paying on time? Worse still, your insurance gets cancelled altogether while you're still driving. What if you have an accident, you’re at fault and you’re not covered? Do you have a spare $20k lying around? We didn’t link so. To avoid unnecessary late fees and or the cancellation of your policy, set up a direct debit to pay for your car insurance. At Mozo, we call this ‘set and forget’. You’ll love the peace of mind it buys you!
- Increase your excess - by agreeing to pay up to 20% higher or more on your excess could save hundreds of dollars in the long run on your premium. That’s a great way to save money on your monthly outgoings!
- Shop around - this is probably the most obvious way to save dollars on your car insurance. By doing your research and compare basic comprehensive premiums. May be obvious now, but you’ll be surprised how many car insurance customers purchase the first product they read about. But you’re at a good place. Here at Mozo, we want to demystify the car insurance process so that it’s more straightforward and less confusing. Why not try our car insurance comparison tool for the best wheel forward.
- Apply online - an average of 10% or more saving is usually offered as an incentive to encourage users to purchase car insurance online. It’s to reduce insurers outgoings while simplifying the application process and keeping them more autonomous. Is it good for employment of the future in the insurance industry? We can’t be sure. But what we do know for know is that applying for your car insurance right now is a great way to shave off a few hundred dollars per year. Sounds good to us, try it for yourself!
- Multi-car insurance policies - have more than one car within your household? Doesn’t matter if it’s nan, your partner or your teenage kids, because you can add virtually anyone to your policy. Basically, the more policies connected to yours, the sharper your overall premium will be. Don’t forget to ask your family members to transfer the monthly amount into your account! Otherwise, ask your insurer if they can accept payments from multiple sources. Bear in mind - the family members’ vehicles under your car policy forfeit their opportunity to build their own personal credit rating and future no-claim bonus discounts.