3 tips to lower your car insurance premium
Paying less for car insurance that still covers what you need can be a great savings. When shopping around for a new policy or renewing your existing one, know that you've got choices.
Here are three things you can do to potentially lower your car insurance premium and keep more money in your pocket:
1. Increase your excess
Increasing your excess is the most obvious way to lower your car insurance cost. Choosing a higher excess means you will pay more out of pocket if you make a claim. Increasing your excess may lower your premium as you are agreeing to take on a higher portion of the financial risk in the event of a claim.
2. Limit the number of drivers
Insurers base your car insurance premium on risk. Having multiple drivers or young, inexperienced drivers on your policy increases that risk. They're not as familiar with your car and haven't spent as much time on the road.
Of course, you'll want to insure based on your needs. If there are others who need to drive your car, they should be appropriately nominated on the policy. However, where possible, limiting the number of drivers on your policy may help lower your car insurance price.
3. Pay your premium annually instead of monthly
While the other two tips have to do with adjusting your policy, this last one relates to how you pay.
We know not everyone has the cash on hand to pay their car insurance for the entire year in one go. However, if you can plan for it, you could enjoy a lower premium by paying upfront compared to paying monthly instalments.
Making sure you've got the right cover also means ensuring that you're not paying for more than you need.
When you're ready to renew, make changes, or taking our a new policy, RACQ is here to help.
RACQ helps you save on auto expenses
After saving on your car insurance premiums, why not save on the rest of your auto expenses?
With your RACQ membership you have access to great benefits and discounts on:
- Fuel and EV charging
- Vehicle inspections
- Battery replacements
- Windscreen repairs and replacements
- Car accessories
- Car hire
- Car wash
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The information in this article has been prepared for general information purposes only and is not intended as legal advice or specific advice to any particular person. Any advice contained in the document is general advice, not intended as legal advice or professional advice and does not take into account any person’s particular circumstances. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives and needs.
Insurance products (excluding Travel Insurance) are issued by RACQ Insurance Limited ABN 50 009 704 152 (RACQ). Conditions, limits and exclusions apply. This is general advice only and may not be right for you. This information does not take your personal objectives, circumstances or needs into account. Read the Product Disclosure Statement (PDS) and any applicable Supplementary PDS before making a purchase decision on this product. You can also access our Target Market Determinations on this website.
Banking and loan products issued by Members Banking Group Limited ABN 83 087 651 054 AFSL/Australian credit licence 241195 trading as RACQ Bank. Terms, conditions, fees, charges and lending policies apply. This is general advice only and may not be right for you. This information does not take your personal objectives, circumstances or needs into account. Read the disclosure documents for your selected product or service, including the Financial Services Guide and the Terms and Conditions, and consider if appropriate for you before deciding.
Except for RACQ Bank, any RACQ entity referred to on this page is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Cth). That entity’s obligations do not represent deposits or other liabilities of RACQ Bank. RACQ Bank does not guarantee or otherwise provide assurance in respect of the obligations of that entity, unless noted otherwise.
RACQ Operations Pty Ltd (ABN 80 009 663 414 AR 000234978) and Members Travel Group Pty Ltd (ABN 45 144 538 803 AR 000432492) are acting as an Authorised Representative of the issuer of the insurance, Tokio Marine & Nichido Fire Insurance Co., Ltd. (ABN 80 000 438 291 AFSL 246 548). Any advice set out above is general in nature only, and does not take into account your objectives, financial situation or needs. Before purchasing any travel products, please consider the RACQ Travel Insurance Product Disclosure Statement (PDS) and the Target Market Determinations (TMDs) that apply to these products. Whilst the PDS outlines the Terms and Conditions of these products, the TMDs outline the intended class of customers that comprise the target market for these travel products. This will allow you to consider which products best suit your objectives, financial situation and needs and consider the products appropriateness to your personal circumstances. TMDs also outline matters involving the distribution and the review of these products. The PDS, Supplementary PDS and TMDs for each travel product can be found here.
Insurance products (excluding Travel Insurance) are issued by RACQ Insurance Limited ABN 50 009 704 152 (RACQ). Conditions, limits and exclusions apply. This is general advice only and may not be right for you. This information does not take your personal objectives, circumstances or needs into account. Read the Product Disclosure Statement (PDS) and any applicable Supplementary PDS before making a purchase decision on this product. You can also access our Target Market Determinations on this website.