5 ways to reduce your car insurance premium

Not all drivers, and not all car insurance premiums, are created equal. Driving is a learned skill and some drivers are naturally more skillful, or safer, than others.

Car insurance companies like Progressive Direct focus on facts and statistics to identify safe drivers who earn the right to a lower premium. We assess how likely you are to make an insurance claim during your time with us to determine the appropriate price.
Car insurance premium assessments consider some basic factors:

  • Do you live in a congested area?
  • Do you drive a powerful, highly modified car? Is it a car that will potentially cause more damage in a car accident?
  • Do you drive often? Does your car have a high mileage?
  • When do you drive most often? Night time? Peak hour?
  • How much driving experience do you have?

Essentially, if you’re in a densely populated area or driving when there are more cars on the road, you’re more likely to have an accident. If you’re younger, or have less driving experience, we know there is higher risk of scrapes and bumps.

The other factor that significantly influences driver safety is your personality type. This is much harder to measure. Do you tend to be a risk taker? If you live an adventurous life, quite often that can make you more likely to take risks while driving. Are you more likely to be early to a meeting or happy to risk being a bit late? Do you fill the petrol tank when it’s a quarter full or more, or do you run it down to the last few drops before conceding to a stop at the petrol station?

Drivers are also driven to distraction by the smartphone; a significant threat to driver and road safety. Texting while driving is incredibly dangerous. The National Safety Council in the US estimates that when you text and drive, you are six times more at risk of being in an accident than being drunk. Furthermore, almost 25% of accidents in the US relate to using a mobile phone while driving. We don’t have equivalent statistics in Australia, but police are actively targeting mobile phone usage in cars due to the rising usage and threat to safety.

So, what can you do about it? Here are five things you can do to be a safer driver and potentially reduce your insurance premium:

  1. Plan ahead and allow time to get to your destination. This will encourage safer driving, as you won’t be in a rush.
  2. Be considerate of other drivers and other people on the road. Stay calm, check your mirrors often and treat other drivers as you wish to be treated.
  3. Remove distractions when driving (such as your mobile phone) and stay focused on the road.
  4. Park your car in a concealed garage. You may also consider moving to a safer, quieter area.
  5. Consider your travel options and possibly use public transport to get to work during peak hour periods.

If you can be safer when you drive, you’ll save money on your car insurance premium, and most importantly you could prevent serious injury or save lives.

Want more tips? Speak to a Progressive Direct consultant today for further advice on how to improve your car insurance premium.

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