How to save a truckload on car insurance

How to save a truckload on car insurance

It’s one of those things you can’t live without, yet you begrudge paying for it. Car insurance, or lack of it, can make your life a misery if you are involved in a crash. In the past, it has not been easy to compare car insurance policies, leaving you secretly resigned to the fact that you are probably paying more than you need to.

There’s no doubt most people could potentially save money by switching insurers, but do you realise just how much money that could be?

RateCity has now launched its Car Insurance comparison engine, a first in Australia, to take the hard work out of comparing and purchasing an insurance policy. Using live prices from participating insurers, you can not only compare prices but also the features of each policy as well as seeing what star rating each product achieved.

The savings you can make on your car insurance are staggering; young drivers under 25 of both genders stand to save the most as their insurance policies vary the most, depending on which insurer they choose. In New South Wales a young driver could find themselves saving almost $2000 dollars and the average young driver around the country could potentially save over $900. That’s big dollars, especially when you’re young and on a tight budget.

If you’re over that magical insurance age of 25, don’t think you can’t save money. There are still hundreds of dollars of savings available for every driver type in every state. Families with young drivers should definitely be shopping around to see how much they can save because nationally there is the potential for them to cut their insurance bill by over $750.

On a state by state basis, motorists of New South Wales have the greatest range in their premiums and therefore the greatest potential to save by shopping around but with the national average of the potential savings being almost $600, there is certainly reason for everyone to jump on and compare premium prices.

How do I compare car insurance policies?

RateCity is the best website to shop around on for car insurance and most other financial products. 

As well as comparing car insurance policies at RateCity, you can also get instant quotes from leading Australian car insurance brands.

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Learn more about car insurance

Does insurance cover a stolen car if keys were in the car?

A car insurance policy that covers the theft of your car, such as third party fire and theft insurance, usually covers a stolen car, even if the keys were in the car’s ignition.

However, your insurer may deny the claim if you live in an area where there have been several car robberies reported recently. They will see you leaving the keys in the car as a case of negligence. In such cases, your insurance provider may even expect you to have installed anti-theft security measures in your car. 

You may need to confirm whether or not you left your keys in your car, and if they had been stolen or misplaced, before filing your car insurance claim. The loss or theft of your car keys may be covered by a comprehensive car insurance policy, but usually as an optional item.

If you can confirm that your car keys were stolen, mention this in your claim as this will help establish that your car was not stolen as a result of your negligence.

Can you insure your car for 6 months?

Most Australian insurers won’t offer you a 6-month car insurance policy, so you may need to buy a policy that covers your car for damages and cancel it after six months. You will need to purchase comprehensive car insurance to protect your car from accidental damage, theft, vandalism, or natural disasters.. 

Consider checking whether your 6-month comprehensive car insurance will cost more if you pay monthly or six-monthly premiums instead of a one-time annual premium. Another question to ask the insurer is whether you’ll need to pay administration or cancellation fees when you cancel the policy.

Alternatively, you can look for a suitable ‘pay as you drive’ car insurance policy, which usually offers you the coverage of a comprehensive car insurance policy but only requires you to pay for the distance driven. Such a policy may not be the ideal 6-month car insurance plan as it is based on how much you drive rather than for how long. If you need to drive a lot, you may end up paying more than you’d pay for regular car insurance. 

Can I drive a new car without insurance?

It is illegal to drive a car in Australia without insurance. Most states require that you get your insurance in place before you drive the car off the dealership’s plot. So, the answer to whether driving a new car without insurance is no, it is not allowed.

The only time you can possibly legally drive an uninsured car is when you have to get the vehicle registered. You should drive straight to an inspection station or your state's vehicle registry. You must also make sure that you take the most direct or convenient route possible.

It is important to note that your compulsory third party insurance (CTP or green slip) isn’t valid until your car is registered.

Driving an unregistered or uninsured vehicle can have severe legal repercussions. If you are involved in an accident, and are driving an unregistered and uninsured vehicle, you will be personally liable to pay compensation to anyone hurt, as well as for damages. If you are caught driving a vehicle without insurance, you may be fined or even have your vehicle seized.