We all know that as a general rule of thumb, the higher your car’s value, the more it will cost to insure. But there are many other factors that play into the insurance premium you’ll pay that you may not realise. Here are some ways you can maximise your savings by carefully selecting your new car and insurance provider.
Colour matters. Surprisingly, the colour of your car directly impacts the cost of insurance and it’s more than just the cost of a respray. White cars are most visible on the road and are involved in far fewer accidents than any other colour car, thus, they are usually cheaper to insure. Black is the hardest to see and is involved in the most accidents, so you’ll pay more to cover it.
Lower your standards. A lower-end model will cost less to purchase and will be less desirable to thieves, which will reduce your insurance. Sport or luxury models will be more expensive to insure versus the standard trim and smaller engine of the lower-spec model. As a bonus, many of the standard features of today’s base model vehicles were the stars of luxury models just a few years ago, so you can lower costs without losing too much of that luxury car feel.
Stay away from rare cars. The fewer there are of your vehicle on the road the more difficult and expensive it will be to find replacement parts, thus, the higher the insurance. This will skyrocket further the more inexperienced you are, so a young driver insuring a rare car – especially if it’s a sport or coupe model – can cost a mint! You’re better off buying a car you see plenty of on the road so that if you do need to replace a part, there’ll be parts available without too much hassle or expense.
Security. Ensure your new car has an alarm and engine immobiliser to deter thieves and reduce insurance. Where you park can also reduce your insurance, such as in a garage or secure underground car park, rather than in the driveway or out on the street. Just parking undercover can help, as your insurer will weigh up the likelihood of your car being damaged in wild weather, where a bad hailstorm can potentially have your car deemed a “write-off”.
Choose extras wisely. Insurance add-ons can quickly raise the amount you have to shell out. If you have a second car you could use if the other was ever out of action, you may not choose the free hire car option.
Weigh up the excess you’ll need. You can pay less on insurance if you increase the “excess” amount that you’ll pay to make a claim. If you don’t drive often, a higher excess for a lower premium may suit. However, a higher excess will mean fewer claims will be worth making, like paying a $1,000 excess for a $700 repair. Whereas, if you pay a higher premium with a lower $500 excess, claiming for a $1,000 repair will be beneficial.
Bundle. Another way to save substantially on insurance is to bundle your car, health, house & contents, business and life insurance policies with one provider, who usually offer a very good discount to customers who do so.
Shop around. Finally, shop around. Pit the companies against each other to ensure they are giving you the best deal possible. You should be conducting an annual insurance “health check” to compare your current deal with what other insurers are offering. If your insurer doesn’t match a better deal, move on!