Driving a good deal: How I halved my car insurance premiums

SAVING $1000 with an hour or two’s effort is a good return on investment in anyone’s mind. Even when it’s for something boring like car insurance, it’s still worth it. Here’s how.

I’M smiling while driving my car this month, and it’s all thanks to one phone call and an hour spent on my laptop.

The reason for this petrol-powered happiness is simple: much cheaper car insurance than I was paying a few weeks ago.

Most of us find dealing with insurance once of the most boring activities imaginable, and we’d probably rather sort out the odd bits of Tupperware and other plastic piling up in our kitchen cupboard.

But insurance companies profit by relying on customers not bothering to review when renewing, which sends hundreds of bucks their way instead of ours.

Multiple car insurance policies with one company can deliver you handy savings.

In my case one annual car insurance bill of almost $1200 has been cut to just over $600. Another was cut from $950 to $600, and the new excesses are also lower.

That’s almost $1000 freed up each year to spend on more exciting stuff than insurance, and here are some keys if you want to do the same for yourself.

• Use comparison websites as a tool but not your sole solution. I visited several popular comparison sites to get an idea of typical insurance costs for my car, but discovered they offered only a handful of deals. A separate Google search for “car insurance” brought up the home pages of other major insurers that offered lower premiums.

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• Check for every discount possible. Many insurance companies offer discounts for online purchases, but you’re still allowed to chat with them on the phone to clarify and seal the deal. Insurers often deliver extra discounts if you have more than one policy with them. And don’t be afraid to ask if they have any other specials.

• Don’t pay for benefits you don’t want. If free windscreen replacements don’t bother you, take the cost out of your premium. Many policies will be much cheaper if the drivers are limited to the vehicle owners and are not aged under 25.

Unlock some serious car insurance savings by following a few key strategies.

• Excesses can be increased to lower the cost, as long as you can handle paying the higher amount if you have to make a claim.

• Some insurers offer big discounts — more than 10 per cent — if you pay annually upfront rather than monthly. If your budget allows it, consider making this saving.

Try contacting your existing insurer and demanding a cheaper policy. They usually offer the best deals to new customers rather than their loyal older ones. That sounds unfair, and it is, but it’s true.

Thirty years ago, Billy Ocean sung the classic lyrics “get outta my dreams, get into my car”. Less than two hours of effort checking car insurance today can save you several hundred dollars to use for your own dreams.

Meanwhile, I’ll be driving off into the sunset to spend my new $1000 — perhaps on some plastic bowls for an overflowing kitchen cupboard.

@keanemoney