Things to consider when comparing car insurance

So you’ve got a new car (or maybe a second hand car that’s at least new to you!).

But before you take it on the road it’s important to take yourself online, so you understand what exactly you need to know before purchasing car insurance, and compare car insurance policies to see which suits you the best.

Step-by-step guide to finding the best policy for you

Of course, we all know that car insurance is absolutely vital. You need to be covered in case of any accidents. But you also don’t want to be paying for more than you need, which is why taking the time to answer a few questions right away could save you money – and headaches – in the future.

Step 1: Decide how much coverage you need

In Australia, every car on the road must have Greenslip or Compulsory Third Party insurance, which provides cover for death and/or personal injury when you or the person driving your vehicle is the driver at fault in an accident. But beyond that, there are three non-compulsory insurance options:

  • Third party property damage, to cover any damage your vehicle might cause to property,
  • Third party fire and theft, to cover any damages to your car as a result of fire or theft or the cost of damages caused by your car to other people’s property, and
  • Comprehensive Car Insurance, which covers just about any eventuality that could arise out of an accident.

Step 2: Review your driving record

Any outstanding tickets or fines? Any demerit points that is due to be re-established? It’s best to wait until your record is as clean as possible before seeking car insurance quotes, as this may affect the quote.

Step 3: Gather competitive quotes, information and reviews

This can either be a long, arduous few days on the phone, or a few quick and simple mouse clicks. Either way, you’ll want to gather as many insurance quotes, company information and track records, as well as independent reviews of policies and company performances as you can.

Step 4: Look for discounts

When making phone calls or shopping online make sure you explore all your options relating to discounts, including No Claims Discount. Many companies reward good driving records, your car’s safety and security features, and also allow you to protect your no claims bonus by allowing some “free” claims before you lose any of your No Claims Discount.

Step 5: Read and review – carefully

After you’ve carefully researched and found a policy you like, carefully read over the main points of the policy to verify it contains the coverage you've requested. You should also look for how the policy deals with policy excess (the amount of the claim you have to pay) as well as the company’s policy in relation to repairs and warranties.

Finding the right insurance cover needn’t be a daunting proposition. In fact, with the right information and reviews, finding the insurance cover that’s the right fit for the car you drive and the amount you’re willing to pay can be as simple as a Sunday drive!

This is general information and does not take into account your financial situation.

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.