If you compare car insurance quotes, you’ll notice a few things. Firstly, the level of cover you choose affects what you pay per month. Secondly, different car insurance providers will quote you differently for the equivalent level of cover. So how to compare and come away with the best car insurance for your driving lifestyle and pocket?
In this article, PD Insurance has outlined some straightforward steps. Have a look and decide for yourself, because ultimately, choosing the best car insurance is a personal choice.
In this article
Factors to consider when comparing car insurance
When you’re comparing car insurance quotes, there are a few factors you should keep in mind.
1. Compare car insurance quotes by provider
Even before you settle in to comparing car insurance quotes it’s worth doing a bit of a window shop on different provider options. Different insurance companies have different underwriting criteria and pricing models, so it pays to do a bit of homework.
Use comparison websites, read customer reviews, check ratings and maybe get in touch with insurance brokers for your initial foray. Then compare car insurance quotes from your shortlist to see which one matches you best.
Once that’s done, stay on the websites of your top three or five insurers (or whatever number you’re comfortable researching) and get a car insurance quote from each. You’ll want to check out the below points too before you take that step.
2. Compare car insurance quotes by policy type
When comparing car insurance quotes, don’t just look at the price tag. Look at what each different type of car insurance policy offers. Are there any additional benefits like roadside assistance or a hire car if your vehicle is stolen? These perks can make a big difference when it comes to peace of mind.
After all, having car insurance is about having a soft landing for unexpected costs. If you’re paying a little more but can claim a lot more if needed, then consider whether that’s what you need.
Here’s a snapshot of how each level of cover contrasts:
- Comprehensive
This is the most popular of the three main types and is more or less the best car insurance. It has the most features and benefits for you to take advantage of throughout the life of your policy.
At its essence, it covers you for damage to your car and other people’s cars and property. Plus it has a whole bunch of extras, which vary between insurers. Which means the pricing can vary widely.
- Third party property
Like comprehensive car insurance, third party property car insurance covers you for any damage you cause to other people’s cars and property. What it won’t cover you for is damage to your own car.
Some people with less valuable cars (we’re looking at you, rust bucket) choose this as a cheaper car insurance option.
- Third party fire and theft
Third party fire and theft car insurance is more comprehensive than third party property car insurance (and hence costs more) but less feature-rich than comprehensive car insurance. Consider it your middle man.
With this, you’re covered if you cause damage to other people’s cars and property (though not your own) plus you’re covered for theft or fire damage to your car. Given one car is stolen every 12 minutes in Australia… well, enough said really.
3. Compare policy disclosure statements too
Every policy has a product disclosure statement (PDS) and it should be easy to find on an insurance provider’s website – here’s ours. It’s important you’re familiar with it and that it’s easy to understand. Not understanding your PDS is often the reason we get disappointed, thinking we’re covered for something when we’re not.
When reading through the PDS while you compare car insurance, consider:
- What features does the product have that you’ll never need? Are you paying a premium for these different bits and pieces of cover?
- What sort of windscreen damage is covered?
- Are you covered for flood? Fire? Hail? Covered for other natural disasters?
- What excess options do you have?
- What discounts are available (eg. no claim bonus, you’re the only driver, etc)
- Where can you get your car repaired? Are the repairs guaranteed? Do you have to organise your own repairer or will they take care of it?
- Can you pay monthly and annually, or is only one option available?
- Is your policy flexible in terms of coverage adjustments and add-ons.
If you can’t answer those questions, it’s time to do some digging. Call each insurer to talk it through. If they can’t discuss the most minute detail of their policy, it might mean their customer service will also be lacking.
4. Compare inclusions in car insurance quotes
Insurers typically offer inclusions with their comprehensive plans. When looking at those, ask yourself which ones you’d actually ever use. A wide range of inclusions usually means a higher premium, so find the features vs pricing balance that works for you.
Our theory is to keep it simple (aka affordable), then give you the option to ‘pick and mix’ the additional extras that are important to you. No point in paying for automatic inclusions you don’t need. For example, when you compare car insurance quotes and find PD Insurance you’ll see our low-cost comprehensive car insurance offers these inclusions*:
- Excess-free repair of your windscreen chips
- A new car or payment up to the insured value if your car is stolen or written-off (for cars less than 12 months old)
- Emergency repairs worth up to $500 (if the damage occurred due to an incident that we cover)
- Towing of your car to the nearest repairer or place of safety
- A hire car if your car is stolen
*accurate at time of writing
And only if you need it, you can pay extra for other benefits. We offer add-ons like roadside assistance, contents cover and an excess buster where we pay your excess once a year if you have to claim on your insurance.
You can see how easy it is for one comprehensive car insurance policy to be much simpler or way more comprehensive than the next! Ask yourself “what do I need to get the best car insurance for me?”.
5. Compare the excess and premium
Pay attention to the excess amount. This is the contribution you need to make when making a claim. Some policies offer flexible excess options allowing you to adjust the cost of your premium. Choosing the best car insurance can amount to finding the right balance between your excess and premium.
A higher excess equals a lower premium and a higher premium means a lower excess. It’s all about what you can pay now vs later if you have a car incident. And if the costs to repair your car are lower than your excess you also won’t be able to make a claim. It’s worth considering whether choosing a high vs low excess is better.
What you choose will can change your car insurance quote – so tweak it according to your current and possible future budget. Keeping in mind that the future you won’t necessarily want to fork it out just because the present you wants to pay less per month!
Factors that impact your car insurance quotes
You and your best bud may get a quote for the same car insurance and provider but be quoted differently. When you compare car insurance quotes in Australia, know that they’re priced according to your personal details and driving habits.
There are several aspects of your lifestyle that may contribute to the premium on your car insurance quote.
Your driving habits and history
- Your driving and claims history: Demerit points from speeding can impact on your car insurance premium as can your claims history. If your speeding reputation precedes you this and you’ve racked up lots of car insurance claims in the past, you present a higher risk. Insurance is all about a balance of risk.
- Your age and experience: Practice makes perfect, so naturally the more often you drive the better your skills become. As a result, insurance companies tend to view younger or inexperienced drivers as higher risks, resulting in higher premiums. Don’t worry, though – the rates tend to come down over time as you prove your driving prowess.
- Vehicle type and value: Ever wondered why insuring a luxury European sedan costs more than a trusty old hatchback? Well, the type and value of your vehicle can impact your insurance quotes. More expensive cars generally mean higher repair costs, thus resulting in higher premiums. The bonus is having your car insurance pay towards these costs when you need your car fixed or even replaced.
- Location, location, location: Where you park your car at night matters too. If you live in a rural area with lower crime rates, you might enjoy lower insurance quotes compared to those of city dwellers. It’s all about the statistical likelihood of theft or vandalism.
Remember to update existing policies when your details change
Even after you’ve found the best car insurance policy and are happy with your monthly premium, remember to check in that your details are up to date from time to time. While you might be well past comparing car insurance quotes, changes to your details can change your premium.
As your individual circumstances are always evolving and changes could increase OR decrease your premium. Something as simple as changing your address situation could mean significant savings. It
Or, for example, your teen may have just bought their own car and now needs to be removed from your comprehensive policy. Anyone who’s separated from their partner and becomes the exclusive driver of their car could also benefit. If you’ve changed your garaging address, you’ll also want to let your local transport authority know.
It’s worth comparing coverage in a changing market
Many of us get our car insurance and more or less forget about it … until we need it. Unless our premiums skyrocket out of the blue, we’re unlikely to compare car insurance quotes to check if we’ve got the best deal and the best car insurance.
With the insurance industry changing all the time, it’s useful to keep your knowledge current. Taking a few minutes to compare quotes might mean you don’t cough up hundreds of dollars extra each month. Or have a wonderful experience at claims time. Or an accident or breakdown that doesn’t causes a heap of stress.
We get it. Life admin is a pain. But when it comes to your car – the wheels to your freedom – no one likes nasty surprises. Here are some added resources to ramp up your choosing power (because knowledge is power):
- Is PD Insurance is any good for car insurance?
- 7 Ways to Slash What You Pay for Car Insurance
- 5 car insurance myths you should stop believing
- Make a Comprehensive Car Insurance Claim in 6 Steps
Hopefully together with this article, these help you choose the best car insurance for your budget and your car.
Choosing the best car insurance for you
At the end of the day, the best car insurance policy is the one that meets your specific needs. Who you are, where you live, where you drive, how you drive, who drives the car, how much you value your car… and many other factors come into play.
In Australia, we’re lucky to have so many insurance options to choose from. Why not check out PD Insurance while you’re at it? We offer award-winning, affordable comprehensive car insurance, a bunch of great add-ons and other benefits.
Want to compare our car insurance quotes with other providers? Just click below to start your quote.