… And Ways You Can Lower It
By Richard Lavcock | Health Insurance Expert at Finder.com.au
Comprehensive car insurance can be a little difficult to work out sometimes – most of us have experienced this, and it’s especially confusing for a first-time car owner. In fact, what a lot of people probably don’t realise as they’re filling out their applications is that there are a lot of factors that can affect their premiums. Here are a few things you should be aware of when taking out a car insurance policy.
What affects your comprehensive car insurance premium?
Where you park it
This one is quite important because it’s a demonstration of how secure and protected your car is, for a number of reasons. In terms of crime, a car that is kept within a locked garage is much less susceptible to theft than one parked on a busy street. But it can also refer to natural disasters or bad weather. If there is a large storm and your car is parked outside, there’s a higher chance it could receive hail damage or have a branch fall on it than if it is locked up. These are the sorts of things insurance brands need to think about because they can affect the likelihood of you making a claim.
Don’t worry, not all insurers will ask you for the colour of your car. But it still stands that white cars are cheaper to insure under many brands. There are a few reasons for this: one is that white cars are far more visible on the road than black cars, especially at night time, which lessens the chance of them being in accidents. Another reason is that they’re the easiest cars to hide body repairs or paint jobs on because most cars already come with a white undercoat.
Unfortunately statistics indicate that males are more likely to be involved in road incidents than females. According to BITRE’s Australian road deaths database, there have been 277 male fatalities compared to 94 female fatalities to date during 2017 in Australia. This sadly demonstrates that men are involved in more road incidents and as a result, they often have to pay more for their comprehensive car insurance.
There can actually be a difference between the amount that two houses next to each other pay for their car insurance and this can be for multiple reasons. Crime rate is a factor on a suburban basis, because obviously in a suburb with a higher crime rate there is more of a chance your car may be broken into. Similarly, those who live closer to public transport can sometimes pay more because there is more foot traffic near your vehicle.
How to lower your premium
Park it undercover
Parking your car anywhere other than on your street should save you money on your premium. Even if it’s just up your driveway or in a carport, this is seen as being safer and more protected than if it was parked on a road. The more secure your car is, the better, so make sure you lock it too! Also, when it comes to making an actual insurance claim for theft or vandalism, you’ll probably have a lot more luck if your car was parked on your private property than on the street.
Simple, but effective. If you are seen as a safe driver and have never made an insurance claim, often you will be rewarded with a no-claim bonus or incentive. In many cases, for each year that you don’t make a claim, you can receive an additional discount on your insurance premium (although this is usually capped at a maximum of five years). This way you save money while being safe at the same time – win win.
Upping the amount of security in your car is a pretty easy way to save some money on your comprehensive insurance premium. By showing that you’ve taken extra preventative measures to stop potential break-ins or theft of your vehicle, you’re demonstrating that your car is harder to steal than others.
Hopefully this has cleared up some of your confusion about comprehensive car insurance and the way the pricing works. If you work proactively to lower your premiums, you may be able to save a fair amount! Good luck.
About the author: Richard Lavcock is the Health Insurance Expert at finder.com.au