With rising interest rates adding to financial pressure, Australian motorists need to get savvy when it comes to purchasing necessities like insurance. Low cost insurance provider Budget Direct shares some inside information on how to save money – without compromising quality.
Spokesperson for Budget Direct, Richelle Ward, said restricting drivers in order to reduce premiums was one of the most common practises used by motorists.
“For all new comprehensive car insurance policies sold in 2007, a whopping 87 percent of Budget Direct customers restricted drivers under a particular age in order to lower their premiums,” Ms Ward said.
Other big money savers include utilising a no claim bonus and installing a car alarm and/or a car immobiliser for your vehicle. Safety devices not only help deter car thieves, but can help lower your premium.
“Security conscious motorists are making significant savings, with 70 per cent of new polices receiving a discount for having an engine immobiliser fitted. And 82 per cent of motorists received a 50 per cent no claim discount, which can amount to saving hundreds of dollars,” Ms Ward said.
Another option is for motorists to increase their excess fee allowing you to reduce your insurance premium. While this may be suitable for some, if the only way you can reduce your premium is by heavily increasing your excess we strongly advise you to shop around.
“Motorists no longer have to pay exorbitant premiums to receive quality car insurance and I would encourage all motorists to gather some quotes when it is time for renewal,” she said.
Budget Direct Tips for Big Savings:
- Shop around! You can save hundreds of dollars with a little research. Different insurance companies use varying criteria to assess annual premiums and this can change from year to year
- Use the Internet, it’s a fast and simple way to research insurance premiums. Lots of companies provide fast quotes online
- Look for companies that have policies specifically designed for your needs. Be careful not to pay for extras that you don’t need, or will not use
- Combining your car with home and contents insurance may entitle you to a discount
- Install anti-theft devices – cars installed with immobilisers and/or car alarms usually receive discounted rates
- Drive safely to protect your no claim bonus. Some insurance companies have a Rating 1 for Life option
- Assume more risk – in many cases you can lower your premium by increasing your excess
For more information about cheap car insurance go to www.budgetdirect.com.au.