How To Choose Car Insurers

Which Car Insurer is right for you?

There are an increasing number of car insurers in the market which is great because that means there is more competition but choosing one can be confusing.

Here are four tips to help you choose:

  1. For most people price is by far the most important factor when it comes to choosing Car Insurance. Premium costs vary significantly between insurer and it's not unusual for premiums to range between $500 and $1,000 per year for exactly the same car, driver and similar cover level. Although all policies have differences in coverage, with some having additional benefits, most insurers target certain customers and are less and are less competitive on others. Although some insurers are consistently very competitive (like Budget Direct, Virgin Money, Real Insurance) the price will depend on the car, address, driver and other factors so you really need to compare quotes based on your situation.

  2. Some people end up choosing insurance from well-known insurers because they feel they can trust them ahead of a less known insurer. These brands also emphasise how trustworthy they are in the expensive advertising campaigns. The reality is that all insurers are heavily regulated by APRA. Big doesn't always mean better when it comes to insurance.

  3. Cover level and features should also be considered. It is worth considering what cover and features are important to you because they do affect the cost of the premium so it's often a trade-off. Consider how much you are prepared to pay in additional premium for features like rental car or windscreen cover. In most cases you can also choose the level of excess for your policy with the insurer you select.  Generally the higher excess the lower your premium will be.

  4. Customer service is another factor people consider when choosing insurers. You will get a feel for the insurer when you go through the application process. Choosi makes this even easier for you by guiding you through the application process.

Newer and competitive insurers are growing fast in Australia, and it's really worth considering them as they may save you several hundred dollars each year and as they are smaller they often work harder to keep their customers happy.

These articles are provided as reference material to allow more informed decision making, but are not intended as being a complete source of information on any topic. All readers should make their own independent analysis on the topic to make sure they have considered the aspects that are important to them.