Reduce your car insurance bill and your stress levels

Reduce your car insurance bill and your stress levels

November 10, 2010

More people are struggling to make ends meet and pay for bills such as car insurance and will likely keep feeling this way for some time, according to a recent survey from Wesley Mission.

The survey showed that more than a third (850,000) of households have been affected by financial stress. More than half the population feels anxious about the future and one in six households feel “very worried” about their financial future, which is double the 2006 figures.

More households struggling to afford bills like car insurance
In addition to struggling to pay for utility bills and reductions in incomes the report showed that in the past 12 months to October, of these households that have experienced financial stress 7 percent had difficulty with paying for car insurance on time.

The survey also showed that those households who where “financially stressed” spend on average $871 on their car insurance and those that were not worried spent slightly more at $965 on their car insurance.

With all of these extra financial struggles, how can households still be able to afford to even pay their comprehensive car insurance bills?

How you can afford your car insurance and still keep your sanity and savings
At the end of the day it’s not worth the risk of driving without the right level of car insurance cover as it could cost you a lot more if you have an accident or your car is stolen.

For instance, what would you do if you hit someone driving the latest Mercedes and you didn’t have the right level of cover? Compulsory third-party property insurance should cover the costs to repair the other car but not your car, so you could be out of pocket thousands of dollars depending on the level of damage. However if you have comprehensive car insurance you would only have to pay the excess and the rest is covered by the insurance provider.

To keep the cost of your car insurance premium down, compare car insurance quotes online to find one that not only costs you less but also offers the right type of cover.

For instance, RateCity compared quotes from 27 car insurers using the same driver profile for a 30-year-old male driving a 2005 Toyota Corolla with a no-claim bonus level one, who resides in a suburb in Parramatta in Sydney’s west. The difference between the highest and the lowest quote was about $1246 with the lowest quote from AAMI at $720.

So if you are struggling to make ends meet, you can reduce the level of stress on your car insurance premium just by visiting car insurance comparison sites such as RateCity.



Related Links

Did you find this helpful? Why not share this article?



Money Health Newsletter

Subscribe for news, tips and expert opinions to help you make smarter financial decisions

By signing up, you agree to the Privacy & Cookies Policy and Terms of Use, Disclaimer & Privacy Policy


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.