The one thing you can do to save $400 on car insurance

Keeping your car safe and sound doesn't have to cost you a bomb. See expert tips to get the best price possible on car insurance.

Not all insurance policies are created equal but the premiums can all be substantial.

Here’s the expert guide to saving – and how readers saved $400 to $1200 a year.

SHOP AROUND

Customer loyalty is supposed to bring rewards, but when it comes to car insurance the opposite can be true.

Taylor Blackburn, personal finance and insurance specialist at Finder, says you could find yourself paying a loyalty penalty unless you review your policy every renewal period. “If you can find a better policy somewhere else, don’t hesitate to take your business there,” he says.

He suggests setting aside time to get as many online quotes as possible.

If you really want to stay with your insurer but have found a cheaper alternative, don’t be afraid to ask them to match the quote because most will fight to keep your business.

Robby Khera from Melbourne recently used Finder to research switching car insurance and ended up saving a packet. The 42-year-old managed to save $100 a month on his comprehensive car insurance policies for his and his wife’s cars.

“I spoke to the people at AAMI after I got the quote and I showed them my current policy and they’d said they would match it and gave me an even better price than the original quote,” Khera says.

The total saving of $1200 over a year for his Toyota Corolla and Camry is a substantial amount for a mainstream vehicle.

The Lawrence family saved $400 on their car insurance by shopping around.

Mother of three Flora Lawrence and husband Rob from Sydney saved $400 a year on car insurance after finding a better rate when they shopped around online and bundled her new second car with the family SUV. Flora says it wasn’t even the cheapest policy, but they wanted a higher level of coverage and were willing to pay more.

WHICH ONE SUITS BEST

How you use and treat your car can have a big impact on your comprehensive vehicle insurance premiums. Some insurers will tailor policies to how you use your vehicle. If you don’t drive a lot of kilometres in a year you could be paying too much if your insurer has a one-policy-fits-all approach. Look around for policies that allow you to choose an annual kilometre limit. Insurers will also charge extra if your car isn’t garaged regularly and some will charge more than others based on the suburb you live in.

Make sure you pay for only the things you need.

DON’T SWEAT THE SMALL STUFF

Small scratches, dents and carpark bingles don’t always warrant putting in a claim. Get a quote on the damage first, then ask your insurer how much a claim will affect your no-claim bonus and your future premiums.

There are repairers who specialise in smaller dents and scratches and they can sometimes fix them for less than your excess payment. Some will even come to you to pop out dents and buff out scratches that aren’t too deep.

Most accidents require you to go through insurance companies for repairs, but it can be better financially to not go through them for smaller jobs.

DON’T TICK ALL THE BOXES

Most insurance policies come with all the bells and whistles, but do you really need them? “Don’t just check the cost of your policy, but also see whether you still need the same level of cover that you have now,” Blackburn says. He suggests you don’t just review your policy but research whether you need the same level of cover. You could be paying for things you don’t need such as 24/7 roadside assistance for a brand-new car that is unlikely to break down. Having a loan car while your vehicle is getting repaired sounds like a nice idea, but ask yourself if you can do without it because it’ll save you a chunk of coin off your premium. You should pay for what is important to you and not the insurer. Read the fine print and see what exactly comes with each policy. Not all policies allow you to choose your own repairer, which can mean inferior repairs on the one hand or a bigger than expected bill on the other.

PAY UPFRONT

It is easier to budget for monthly payments, but if you can pay the year upfront most insurers will give you a discount. If you consider yourself a safe driver and are comfortable with a higher excess, it can reduce your premiums significantly. Finally, if you have more than one car, and your kids drive them, insure them to only drive one of the vehicles as under 25-year-olds and inexperienced drivers can push up premiums and excesses.

Originally published as The one thing you can do to save $400 on car insurance