A whopping 90% of motorists are taking advantage of policy discounts by restricting the age of drivers, 71% are cashing in on discounts for car alarms and immobilisers, while 80% are reaping the rewards for having a good driving history says low cost car insurance provider Budget Direct.
An internal review of purchasing habits over the last five years has uncovered that restricting drivers and having few or no claims are still the top ways customers are saving money on premiums.
Spokesperson for Budget Direct Richelle Ward said while these results relate to our customers only, in this economic climate many are forced to do what they can to reduce costs but warns that stating incorrect information could back fire in the event of an accident. Answering questions incorrectly that relate to your driving history or number of accidents could risk a claim not being paid.
“Restricting who drives your car is a popular choice because younger drivers are a higher risk for having an accident so they do cost more to insure. In fact, our statistics show that a provisional driver is twice as likely to claim as a driver who has held their full licence for more than 2 years, while a driver aged less than 20 years is twice as likely to claim then a 35 year old.
“Even at the age of 24 a driver is still approximately 30% more likely to claim than a 35 year old. Marketing gimmicks may promote letting anyone behind the wheel but there are no free lunches – a claim could result in a much higher excess fee so be sure to read the fine print.
“It’s now common for vehicles to be manufactured with car alarms and immobiliser as factory standard, making recent models more difficult to steal, which in turn could reduce your premium”, Ms Ward said.
The other dollar saving avenue that is gaining popularity is the option to increase the excess fee to reduce the premium. In 2005, on average only 10% of consumers took advantage of this option, which has risen to 18% of total policies purchased in the last five years.
“While we’ve seen this option advertised more heavily in recent years it really depends on your financial situation as to whether this is a good idea.
“Increasing your excess to $1000 might reduce your premium at the time of signing on but not all consumers may have that amount of cash on hand in the event of an accident. Without a vehicle to get to work a consumer could land themselves in further financial difficulty, highlighting how important it is to find the right policy for you.
About Budget Direct
A&G’s signature brand Budget Direct is fast approaching 11 years in operation as one of Australia’s leading insurance providers.
Car Insurance - Cut the cost not the cover