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7 Ways to Slash What You Pay for Car Insurance


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Want to know how to reduce car insurance costs? Then you’ve come to the right place. Your car insurance premium should always fit your wallet – we totally get that.

In this article, PD Insurance lists 7 tips for keeping your car insurance costs down and your peace of mind behind the wheel up. Because that’s how it should be.

A woman researches different car insurance providers to compare cost

#1 Shop to chop your car insurance costs

Step #1 is to research the market. Shop around to bring down the costs of your car insurance premium.

Picture two peacocks competing for the same peahen. They’re both going to try and outdo the other with that competitive vibe, maybe even take things up a notch. Same goes for service providers and car insurance is no exception – everyone hopes to have you as their customer. (Unless you’re a shoddy driver but that’s another story)

Take hold of that peacock analogy and take advantage of it by checking out different car insurance providers. One of them is bound to be doing something better than the others and that difference might be just what you’re after.

As the customer, it’s you who gets to pick and choose, and that’s your power.

A woman with a whiteboard that says 'insurance' is explaining how to reduce the cost of car insurance to her clients

#2 Get the best car insurance premium from day dot

By starting with the right insurance provider from day one, you’ll save the costs and hassle of potentially paying fees for switching insurers down the line. Urrgggh, no one wants to pay switching fees and if you start out informed you won’t need to bunny hop to another insurance provider later…

Until it’s time to take step one above again, that is, which you should do at least every few years.

Let’s face it, doing your homework well pays (or at the very least, helps keep your premium low).

a woman stands in front of a safety tested car with high safety ratings that can count in favour of reducing the cost of car insurance

#3 Drive a safer car for a better premium

Driving a vehicle that’s recognised for having great car safety features can also help slash your car insurance costs because you’re less likely to have serious driving incidents. Know that it’s really quite easy to check on car safety ratings with the new ANCAP safety ratings.

Not only that but driving a safe car is probably going to give you a greater sense of protection and peace of mind. No one’s measuring here, but peace of mind is a good thing to have for making good driving choices. It means you won’t feel nervous and distracted and can react quickly if needs be.

Keen to know more about making safe car choices? Read about on the safest car colours and what you should know about car safety recalls.

Save on car insurance premium by recouping on your tax return

#4 Drive down car insurance costs with tax returns

The phrase “tax returns” may incite your finger to want to keep on scrolling but wait!

If you use your car for work purposes, you may be able to score by claiming car expenses on your tax return and maybe even recouping the cost of your car insurance. It’s your money after all, so you may as well get it back in your bank account.

Plus, it’s not so much about keeping dog eared books and crunching numbers anymore. With helpful apps it’s getting easier by the year – we’ve roundup favourites in our article on claiming car expenses for business.

A phone with an app that helps calculate car tax returns

#5 Hike your excess up and your premium down

Let’s talk about a necessary part of insurance – your excess (i.e., your contribution towards a claim – your insurance provider pays the rest).

Depending on your driving experience, circumstances and claims history, it might benefit you having a lower excess and a higher premium or it might not. It just depends on what you’re after short and long term. Some people prefer to go the other way and have a higher excess because it means having a lower car insurance premium.

It’s a bit of a balance – and not a decision to rush into without weighing up the pros and cons of each being higher or lower. Want to understand more about how to choose your excess? Then check out the ins and outs of your car insurance excess payment.

A car is garaged in a safe neighbourhood and therefore the cost of the car insurance to cover it for accidents is relatively nominal

#6 Remember car insurance endorsements

The cost of your car insurance premium is based on you, your car and your driving habits (like where you park and usually drive, for example). Essentially, your car insurance costs are related to your driving lifestyle. Change that and it can change what you’re paying for car insurance.

A car insurance endorsement is just a fancy name for any personal changes to your driving lifestyle. You should always let your insurance provider know about these right away. If you’ve moved house for example, you’ll be parking somewhere new and that’s relevant to your policy.

Keeping your insurer updated with changes like this means keeping your cover in place. It can also alter what you pay on your car insurance premium – and maybe save you money.

A woman holds a trophy to represent her choice in getting a award winning car insurance from PD Insurance

#7 Choose award winning, low cost car insurance

Win on your car insurance cost to value ratio by choosing an award winning insurance provider – like PD Insurance. Our award winning car insurance is tailored to give you great cover at a price that fits your pocket.

Click below to get a quote on high quality, low cost protection for effective cover in times of need.

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