However, what many car insurance shoppers don’t realise is that one route to lower car insurance rates may be as easy as adjusting their excess.

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Car Insurance Excess Explained

In car insurance terminology, “excess” refers to the amount that the policyholder is willing to pay in the event of claim filed on a non-compulsory policy, such as a comprehensive or fire-and-theft policy.

Here’s how excess works: Imagine that you are at fault in an accident in which your car is damaged, and the damage tallies up to $1500. Your car insurance excess is $500. You pay $500 toward the cost of repairs, and your car insurance company pays $1000.

How Your Excess Amount Affects Your Premium

Car insurers, like any other business, need to make money. The lower excess you choose, the more they will be responsible for paying in the event that you make a claim. That cost is offset in the form of your car insurance premium. The higher excess you choose, the less the car insurance company is responsible for paying when you make a claim. Not surprisingly, the higher excess you choose, the lower your premium tends to be.

How Excess Affects Different Car Insurances

When you choose a higher excess, your premium may be reduced, no matter what type of non-compulsory car insurance you have. Choosing a higher excess can make comprehensive car insurance policies more affordable, and allow you to add theft/fire to a third party liability policy for little additional cost.

Balancing Excesses and Premiums

Agreeing to take on more of the cost of any claims you file will make any non-compulsory car insurance policy more affordable, but that also means that you’ll need to have the cash on hand to cover your excess in the event that you need to file a claim. Consider depositing some of the savings you reap from choosing a higher excess into a savings account for unexpected financial needs such as car insurance claims.

Higher Excess, Lower Rate

By choosing a higher excess, you agree to take on more of the cost of any claims that you file yourself. Car insurance companies like it when you’re willing to pay more for your claims, and may reward you for your increased responsibility. If you need to save some money on your car insurance, compare rates on policies with a higher excess than you currently have. You may be surprised how much you can save.

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Like many drivers, you may keep valuables in your car from time to time. This could include a variety of items, from an upgraded speaker system to valuables that are usually kept at home – you never know what you may have in the trunk, glove box or back seat of your car at the time a thief decides to strike.

Car Crime

Thieves are not necessarily always looking to steal your car. Instead, they may simply want to break in and take whatever portable items you have inside the car. For this reason, you need to know whether your car insurance provides cover for the cost of such property that could be stolen from your car.

When you compare car insurance with an eye on coverage for property kept in your vehicle, you will find that different policies take different approaches. Along with this, you will see that the price may vary according to the extent of your cover.

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Is This Coverage Included?

With some policies, you may receive all the coverage you want for property left in your car. It’s always wise to read your entire policy – including all the details of what is and isn’t covered – before signing on the dotted line.

How Much Coverage am I Getting?

It is one thing to check whether property stolen from your car is covered by a given policy.  But you cannot expect an unlimited amount of coverage. Make sure you know the maximum cover limits, and compare this to the total value of any items you may leave in your car unattended.

Are There any Stipulations?

You may be surprised to find that there are stipulations attached to the type of property that is covered. As noted above, there may be a maximum payout. There may also be specified exclusions regarding the types of property for which you can claim, or there may be a specific definition of what counts as theft.

Home Insurance or Car Insurance?

While this is not always the case, some home insurance policies may cover your valuables even when they are not in your home. If you already have this kind of coverage, or you can get a better deal from your home insurance provider, then that’s another thing to consider during the comparison process.

When you compare car insurance for property stolen from your car, you will find that you have several options. Even if you don’t plan on keeping valuables in your vehicle, you may think it’s better to be safe than sorry. This is an often overlooked detail that is worth a bit of attention.

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Imported cars are manufactured to meet the standards of their country of origin. This may make insurance rates much higher. Imported cars may also need to be modified in order to meet legal requirements in Australia before they can hit the road. This makes it harder for insurers to determine their value because there are fewer other vehicles in Australia to which a given imported car can be directly compared.

Imported car insurance may also be higher than domestic car insurance because many imported cars may be capable of higher speeds. With accidents deemed more likely to occur in a faster vehicle, this means such cars may present a higher insurance risk. Imported cars are often popular with younger drivers, which can impact premiums. Because younger drivers are statistically more likely to have an accident, their insurance may cost more. Repairs may also cost more if the required parts have to be imported.

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How to Compare Car Insurance for Imported Cars

Imported car insurance may also be harder to find because not all insurance companies insure imported cars. Don’t panic though! Here are 4 tips to use that will help you compare car insurance for imported cars:

1. Choose an imported car with lower performance gains. These are usually cheaper to insure.
2. Reduce the risk of theft by keeping your car in a garage. Installing a quality alarm system in your garage is also a great idea. If you keep your car well secured, your premiums may be lower.
3. Shop around to compare insurance rates, because they can vary greatly. Keep in mind that even if insurance companies cover imported cars, they will have restrictions on the cover provided. Some companies may have age limits for cover for drivers of imported cars. Others may allow only certain slight modifications to be made to the car, and may decline to insure a heavily modified vehicle.
4. Always drive safely, because your driving record will be relevant to your car insurance rates.

Trouble Finding Cover?

After researching insurance companies and their policies, you should have found some that insure imported cars. In addition to ensuring that you meet their eligibility requirements, you’ve checked that the price is right and the cover meets your needs. You’re thinking, “so far, so good,” right? Don’t get excited too quickly because there may be a catch. The catch is that some insurance companies cannot cover certain types of imported cars.

If you are faced with this problem, don’t worry. Keep searching and you will find the perfect company to insure your car soon enough. You could even ask the insurer who declined to cover your imported car whether they can recommend an alternative insurer for your needs.

Here is a useful tip to follow when you speak with insurance companies: Find out at the start of the discussion if they will be able to insure your imported car. If you do this, it will save you and the insurance company lots of time. If they are unable to insure your car, you will find out immediately and can then start looking for another company.

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Buying your car insurance from a local broker may seem hopelessly old-fashioned, but if you’re seeking a policy tailored to your business’ needs, then your neighbourhood insurance broker can help you to shortlist a few that are the most suitable.

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If You’re Unsure What You Need

If this is your first business car insurance comparison, or you’re not sure of the options beyond compulsory third party insurance,  it may be worth spending an hour or so of your time with your local insurance broker. A broker can help you to understand the differences in the various types of insurance cover that are available to you, while also recommending the most appropriate options for your needs.

If You Have Unusual Vehicle Use Needs

Depending upon your business, or what type of vehicle your business needs,  you may have special insurance needs beyond the scope of the standard policies that are available for businesses. You might want to enlist a broker to help with your car insurance comparison if you use your vehicle for:

• transportation of customer goods
• towing other vehicles
• transporting customers or volunteers
• or various other out-of-the-ordinary uses

If Your Employees or Customers Have Special Needs

Businesses who serve or employ those whose circumstances are special often have special insurance needs. If your business requires a vehicle that’s modified to accommodate a disability or other special needs, then you may need insurance that covers the vehicle including these modifications — not all car insurance policies cover modified or adapted vehicles. An insurance broker can help you make sure your car is covered for modifications necessary for your business operations.

If You Want to Save Money

Even if your business’ car insurance needs are perfectly ordinary, you may benefit from the knowledge and experience that an insurance broker offers. Insurance brokers can use the information you give them to find coverage that fits your needs, while pointing out any available discounts that are available or suggesting ways to customise your business car insurance cover and try to save money.

What’s more, an insurance broker may, if you wish, help you to consolidate two or more of your insurances — including car insurance cover — into a multi-policy package that may help you save more money. Depending upon your type of business, a broker may also suggest other types of business insurance that may be helpful to your company.

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If you’re going to drive on public roads, you must at the very least have Compulsory Third Party cover, and you may want the additional peace of mind that other types of car insurance offer. But what if your car has already been accident damaged – how does that affect your insurance?

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When Your Car Has Previously Been Damaged

The car insurance comparison process can be complex, and seeking new insurance for an accident damaged car is no exception. That being said, you may find an insurer that will work with you despite your car’s accident damage history.

Above all else, you need to be open and honest with the insurer that you are interested in doing business with. This means letting them know upfront that your car is currently damaged. Believe it or not, some people have the thought of not telling their new insurer and then making a “hit and run” claim sometime in the future. This would constitute car insurance fraud and could cost the defrauder a large fine, a revoked driving license, or time in jail.

So, explain the accident damage on your car to any insurer you’re interested in dealing with. This is particularly important if you did not make a claim with your past insurance provider. You may be asked many questions about the current damage to your vehicle. Make sure you are as thorough as possible regarding the extent of the damage as well as the exact location on your vehicle. This will be noted by the insurer to ensure that it does not cause you issues in the future should you need to make a claim.

Will Premiums be Higher?

Sometimes yes, sometimes no. This may be based more on your driving history than the current condition of your vehicle. After all, your car may be damaged through no fault of your own. In this case, the insurer may not consider you to carry a high insurance risk.

Take Pictures of the Damage

Before you start looking for a new car insurance policy, it may be wise to take pictures of the existing damage to your vehicle. In some cases, your new insurer may request that you forward the images to them. Whether your insurer keeps a copy of the photos or not, you can save a copy somewhere safe. Those images may help you to show new damage versus old if you need to make a claim.

If you are in the process of shopping for car insurance and your vehicle is damaged in any way, you must make sure that the insurers from whom you obtain quotes are aware of the current condition of your car.

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This is especially so amongst women drivers, who are deemed as less reckless on the road than their male counterparts. For women above 30 years of age, the challenge is to find a car insurance policy that offers as many ways as possible to maximise savings and minimise costs.

Here are some money saving tips for women drivers aged 30 years or older. Eligibility for these discounts is not necessarily based on age or gender, but they may be an excellent way for women aged 30 and over to pay a little less for their car insurance.

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Safe driving and no claims discounts

Any driver may qualify for a no claims discount when he or she has no at-fault accident over a specific period of time. Another type of discount that you may be eligible for is the accident-free discount (even if you have had an accident but were not at fault). If drivers happen to get involved in an accident later, the insurance company may remove the discount and the premium may increase.

Driving less

Driving your car only rarely may make you eligible for a special deal to help keep your premiums low. Opting to car pool or take public transport on more occasions may help you to keep your annual kilometres low and hence save on premiums.

Driving skills courses

If you do not already know, car insurance premiums may be reduced for women over 30 years of age upon completion of an insurer-approved Defensive Driving Course. The money spent on the course is well worth it in the long run, as you become a better driver and are able to handle the challenges on the road when the need arises. Not only this, but you may be eligible for discounts on car insurance long-term after just one driving course.

Multi-car insurance discounts

Women who are in their thirties are prime candidates for multiple vehicle policy discounts, especially if they are married as they and their spouses are likely to have cars of their own that need to be insured, as well as the vehicles of any adult children. Getting all the cars insured with the same insurer may mean that your premiums amount to a lower total than if you’d purchased several different car insurance policies.

Eco-friendly cars

Another way to save on premiums, for women above 30 years old or any other driver, may be to drive an eco-friendly vehicle such as hybrid, bio-diesel or ethanol cars. Studies have shown that drivers of eco-friendly cars tend to be above forty years of age and at a higher than average level of income. You may reap a reward for your eco-friendly car in the form of reduced premiums; check with your insurer for more information.

Safety devices

Installing anti-theft devices such as mechanical immobilisers and car alarms may make you eligible for lower premiums. On top of this, you may also find that you save even more if you drive a less expensive model of car. A point worth noting is that sports cars and SUVs are considered to be high-risk to insure, statistically speaking, so the premiums on such vehicles tend to be higher.

Being over 30 years of age has its benefits. You are deemed to be a better driver than a youth, considered more responsible on the road, and may be able to reduce your premium by paying a higher voluntary excess in case of filing a claim. Take advantage of your age and gender when choosing an insurance policy and follow a combination of the above tips to maximise your savings on premiums.

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Understanding what Compulsory Third Party cover, or CTP, offers you is an important part of purchasing car insurance. CTP cover is required throughout every state and territory of Australia, although the way that you purchase your cover — and who you purchase it from — varies. Knowing how CTP cover protects you can help you to make decisions about what additional car insurance cover you may or may not need.

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CTP Cover By Other Names

If the term “Compulsory Third Party” cover is unfamiliar to you, it could be that you know it by one of the many other names it goes by in Australia. In some areas, Compulsory Third Party insurance is known simply by it’s acronym, CTP, with many residents unsure what those letters stand for. In other territories, it is known as Green Slip cover, for the green registration slip you receive when you purchase this cover along with your car registration. Some insurance agents will refer to Compulsory Third Party insurance as third party personal liability. No matter what it’s called, however, Compulsory Third Party insurance is required in order to drive a car on public roads in Australia.

CTP Cover is Limited

Once you know it by all its names, it’s important to familiarise yourself with what Compulsory Third Party insurance covers. In every territory and state, regardless of its name, CTP covers injuries and/or death to people who are injured in an accident in which you are at fault. It’s as simple as that. In most cases, the driver’s injuries are not covered, and in no case is damage to property covered. This is why many drivers opt to buy additional car insurance.

Injury Cover Explained

Many consumers fail to realise that Compulsory Third Party cover typically pays only for costs associated with injuries that result from an accident deemed to be the fault of the driver who has this cover. This means that, in an accident involving the driver’s car and another car, CTP cover will only pay hospital and other associated costs for the injuries other drivers or passengers sustain.

CTP does not cover the costs of damages to others’ cars or property. To make matters even more confusing, some policies may also come with added provisions that cover you as a driver. While this cover is obviously valuable, saving you an enormous amount of worry and money should you be injured in an accident that is your fault, assuming that your policy includes this cover may be a mistake — you should always check to be sure, and if it does not, consider whether you want to arrange this type of insurance cover separately.

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Compulsory Third Party Insurance

When it comes to car insurance in Australia, there’s one commonality — no matter which state you live in, you are required to carry Compulsory Third Party insurance.  Compulsory Third Party insurance, or CTP, covers the cost of care for injuries sustained by other persons such as motorists, passengers, motorcyclists, pedestrians and others in the event that you are in an accident that is deemed to be your fault.

It’s important to note that in most States, your injuries are not covered, nor are any damages to cars or other property as a result of the accident. CTP also covers you if an accident results in personal injury legal claims.  The way you purchase this cover will depend upon the state you live in.

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Australian Capital Territory: In the Australian Capital Territory, CTP is referred to as TPI. The cost of Third Party Insurance (TPI), is included in the annual registration costs you pay to register your car. NRMA is the insurer used, and handles all claims.

Northern Territory: In the Northern Territory, CTP insurance is provided by the Territory Insurance Office, and is included as part of registration costs.

South Australia: CTP insurance is included in registration fees in South Australia. The Motor Accidents Commission provides motorists with CTP insurance. Allianz processes all claims.

Tasmania: In Tasmania, the Motor Accident Insurance Board (MAIB) provides motorists with CTP insurance, which is included in registration fees.

Victoria: The Transport Accident Commission provides CTP insurance to motorists in Victoria. CTP is included in registration charges.

Western Australia: The Insurance Commission of Western Australia is the provider of  CTP insurance, which is part of registration fees.

In New South Wales and Queensland, motorists have some choice in how they purchase CTP insurance.

New South Wales: Motorists in NSW can choose between seven insurance providers for their CTP cover. Prices can vary greatly among these insurers, so motorists should shop around to find the best deal. The providers of CTP cover in NSW are:

• AAMI
• Allianz
• CIC Allianz
• GIO
• NRMA
• QBE
• Zurich

Queensland: Like NSW, Queensland allows motorists to choose between six approved CTP insurance providers. The competitive nature of CTP insurance cover in Queensland means motorists may want to shop around to find the best quote for their car insurance policy, which is affected by several factors, including driving history and geographic location within Queensland. The six CTP insurance providers in Queensland are:

• AAMI
• Allianz Australia
• IAG trading as NRMA
• QBE
• RACQ
• Suncorp Metway

Car Insurance Options

Regardless of which state you live in, as a motorist in Australia, you do have car insurance options if you want to buy cover in addition to your CTP insurance. Policies are available to protect your car or others’ cars or property in the event of an accident, and that provide theft and fire protection, or all of the above.

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Read on for more information about how safe drivers may qualify for certain car insurance privileges such as lower premiums or smaller excesses. Below are 6 tips that may help you to drive safer on the road:

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Tip #1: Stay focused

Accidents can be avoided if you stay focused on the road. Paying attention may help you to notice a car that is tailgating you, or one that is turning towards you, and hence react accordingly to avoid a collision.

Tip #2: Avoid speeding

By slowing down, you are more likely to have time to react to avoid an accident, and there is less likelihood of losing control behind the wheel. Driving at the recommended speed will allow you to safely slow down or stop if there is an obstruction ahead. Slowing down is especially important if the road is wet and slippery, or when driving in weather conditions in which your vision is obscured.

Tip #3: Stay off the phone

Drivers who speak on their mobile phones, even using a hands-free device, may be more prone to losing concentration on the road, hence becoming more likely to cause an accident. Drivers who use mobile phones are also statistically more likely to lose their grip on the steering wheel.

Texting may also cause an accident, no matter how briefly the text is written and sent. Losing concentration for just a moment may be deemed negligence on your part as a driver. Therefore if someone crosses the road in front of you or if your car veers slightly off track, any resulting accident may be found to be your fault. If you are expecting an important call, it is wise to pull your car to the side of the road in a safe area to answer or return the missed call.

Tip #4: Never drink and drive

Be a responsible driver by not drinking when driving and not driving when drinking. Drinking affects concentration and impairs judgement, reaction speed and co-ordination. That is why it is best to stay away from driving when you drink. Taking a taxi home or getting a lift from a non-drinking friend will save you from trouble.

Tip #5: Use your signals

Using your signals allows other drivers to slow down or move aside, knowing that you’re about to turn to your left or right. Not using your signals may result in a collision if another driver is unaware of your change of direction until it is too late.

Tip #6: Try a safe driver course

Take a look at safer driving courses in your state to fine-tune your safe driving skills. Designed to allow participants to experience practical emergency driving simulations in a controlled environment, these courses provide you with insight on how to be a more aware driver. Such courses may make you eligible for a lower premium with some insurers – check with your car insurer to find out more details.

Safer Driving Overview

Being a safe driver may lead to benefits such as No Claim discounts or lower premiums. You tend to save more over time the longer you hold a clean driving record. Follow the above tips which may help you stay safe and save in the long run.

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2. Cut your Insurance Premiums with a Defensive Driving Course
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Conditional Estimates

The car insurance quotes you get online take a certain amount on faith. They rely upon you to be honest about everything from the condition of your car to your driving record. If you read the fine print that is part of almost any online car insurance quote, you’ll usually see a statement somewhere warning you that the quote you receive online is subject to verification, and is binding only if all the information you provided is correct.

How You Pay

The way you intend to pay for your car insurance cover may affect the cost. If you pay your car insurance premium yearly, or with some insurers twice yearly, you will typically be charged the cheapest premium. But if you choose to pay on a monthly or quarterly basis, you may find that your total insurance costs are higher due to fees for paying in instalments.

Details Matter

Even if you try to be completely honest when it comes to reporting your driving history as part of getting an online insurance quote, you would be wise to double-check that there is nothing important you forgot to mention.  If you have to change your driving history details after your initial car insurance quote, this may cause delays and may also mean that your final premium is higher than the quote you got before giving full details. If your driving history includes traffic offences, or accidents that cost your then-insurer anything to settle, you may have a higher premium than someone with a clean driving record.

Time is Of the Essence

Most online car insurance quotes are good only for a set number of days — typically thirty — and do not have to be honoured by the insurer after that time has expired. So, if you dally in your car insurance comparison, your quote may be out of date by the time you go to buy your policy.

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