How to Get the Cheapest Auto Insurance

1 in 4 of Australians overpay for their auto insurance, according to the Automobile Association of Australia. The reason for such error is that most policy holders failed to shop around for the best deals, or that they have a bad history when they get behind wheels. Wrong combination of driver characteristics and the cars they drive are also seen as the reason these drivers’ insurance premium spiked.

Heres a few tips from a popular insurance company Youi to help you get lower auto insurance quotes, regardless of age and gender:


#1 Shop around – Take your time and shop around for the best deals when you are insuring your automobile. Go online, visit insurers’ office, or talk to an agent. When you do the comparison, remember to compare policies that are alike. Some cheaper policies might have important coverage such as windscreen damage or no-claims-bonus removed. So do be careful.

Some insurance companies also tend to add on extra on the insurance deals that you sometimes don’t really need, such as dent coverage. These could be eliminated to lower the premium.

#2 Drive a cheaper car – Young drivers especially, will be slapped with very expensive insurance plan if they try to insure an expensive, sport car under their name. Insurance companies know the lethal combination of a fast car and a young heart. Sometimes, even people at older age have to pay significantly more as well if they try to insure an expensive or sports car.

The best solution? Drive something cheaper. Get cars within the first 1 – 5 groups, as these cars are the cheapest to insure.

#3 Protect your No-Claims-Bonus (NCB) – A long no-claims bonus is the best way to reduce your insurance premium. So unless its necessary, do not lodge claim with your insurance company. If your car only has a dent from a piece of rock falling from the overhead bridge, pay for the repair from your pocket, and spare the insurance company. Stay away from accidents and claiming for damages – You will be happy to see your insurance premiums slashed well by 70% after 5 years from your first premium.

transportation and ownership concept - man with car documents

#4 Take higher excess – By voluntarily offering to pay more excess in your insurance plan, your premium will go down. Paying more excess means paying more from your own pocket if your car got into an accident. However, do beware not to let the excess go too high, especially if you are driving a car that has a low market value.

#5 Keep your insurer updated – Had a recent address change? got a new job? Let your insurer know. Sometimes these changes of information will affect your insurance status as well. Jobless people tend to pay more premium on their auto insurance, and that a change of address from somewhere with bad road condition into urban area with good highway connection could lower your insurance premium (since you now pose less accident risk by driving on good roads).