We all know how important it is to insure our cars, but it can be a significant expense. Here are some things to consider when weighing up what cover to buy, to help you get the best value for money.
Choose your cover
The cheapest cover available is Third Party Property insurance, which protects you from paying for the repair or replacement of another person’s car (or property) if you are at fault in an accident. But it’s important to remember that this type of cover won’t cover you for damage to your own car. It generally also won’t cover you if your car is stolen.
On the other hand, Comprehensive cover also protects your own vehicle against loss or damage — regardless who is at fault. It’s more expensive, but if you can’t afford to replace your vehicle, it’s well worth the money if you’re at fault in an accident.
Choose your provider
Once you’ve selected the cover you want, you’ll probably start shopping around. But with all the different providers offering different features, it can be hard to know what represents the best value.
Consider what’s important to you. Is it price alone, or do you want to be able to choose who repairs your car? Does your cover include Emergency Roadside Assistance and let you claim for emergency costs if you’re stranded far from home? Does it include windscreen replacement as standard? And can you trust them to manage your claim quickly?
If you’re buying or leasing a new car, one convenient option is to arrange your car insurance cover right there at the dealership. An experienced Business Manager can help you choose the cover and features you want to meet your needs.
Five ways to save
How much you’ll pay for your car insurance is based on the value of your car, and factors that affect the risk of theft, damage or accident. There are some strategies for reducing this risk — potentially lowering your premiums.
Find secure parking. Your car is less likely to be stolen, vandalised or damaged if it's parked in a garage, rather than on the street.
Fit Safety features. A car with built-in features such as airbags, anti-lock brakes and an anti-theft and electronic engine immobiliser system are deemed to be less at risk of break-in or accident.
Don't add other drivers. Your premiums may go up if you put other drivers on your policy, especially if they are young or have a poor driving history.
Minimise modifications. If your car is modified from its original specifications, it’s considered higher risk. So consider getting rid of the spoiler to pay less.
Increase your excess. The more you are willing to pay in the event of a claim, the lower your premiums will be. Find out more about car insurance options.
Return to Insurance Tips & Guides