Comparing car insurance in Australia – 5 things to consider

Choosing car insurance can be a stressful process for many people, and with so much variety it is sometimes hard to know which option is the right one for you.

If unsure, it is helpful to be able to compare car insurance to see where you are likely to get the best quote, and a policy that is suited to your individual needs. This can be done simply online, with comparison websites such as iSelect.

To properly compare car insurance, it is important to understand exactly what is taken into account by insurers determine the cost of your premium. Below are some examples of things that could typically influence your car insurance quote.

Various kinds of car insurance

There are a number of different types of insurance. Compulsory Third Party Insurance (or CTP Insurance) is required by those registering a car for Australian roads. It covers personal injury for crash victims, but not damage to the policy holder’s car or property, nor anyone else’s. Third Party Property Insurance covers damage to another person’s car or property, but not your own.

Comprehensive car insurance covers both personal injury and third party damage, and is the highest level of insurance. However it is also the most difficult insurance to compare because of all the various contributory factors, which are measured differently by all insurers.

 
Choose exactly which items you wish to insure

If you know exactly what kind of cover you are looking for, it is easier to compare car insurance quotes accurately.

Some insurers may appear to be cheaper than others based on the quote, but that may be because they offer less comprehensive coverage, with extra items then bumping up the quote considerably. On the other hand, generally speaking, a quote that seems more expensive will most likely provide more comprehensive cover.

Knowing what the extra items included in a quote are, will help you establish which policy is genuinely more suitable for you.

Premium and Excess

These are the two main costs to focus on when looking to compare car insurance. The premium is what is paid for the insurance, and can sometimes be reduced if you agree to pay higher excess, which is the amount you pay at the time of making a claim. This is usually deducted from any pay out by the insurer.

Ask for a discount

When comparing car insurance, if you find suitable cover that is cheaper than your current policy, it can pay to go to your current insurer and ask for a discount to keep your business, the difference may be incentive enough to stay with them, however- if not, whilst it may seem easier just to stay with your current insurer, the ease with which you are able to compare policies online makes it a worthwhile exercise to ensure you are getting the best deal for your needs.

 
Different insurers rate factors differently

The cost of car insurance premiums is geographically hugely variable. People in some areas may find that they pay more with the same insurer than in others, for example someone living in a neighbourhood with a high crime rate will be considered higher risk than a similar person in a neighbourhood with a lower crime rate.

Other factors such as age come into play. People under the age of 25 are considered higher risk- due largely to inexperience, while women are statistically safer drivers and are consequently considered to be a lower risk in the eyes of an insurer.

All car insurers will look at details such as these, but each have different means by which to compile a final quote, so, in order to compare car insurance, it is helpful to know how different factors contribute to the end cost, but ultimately- every insurer is different, so using a comparison website like iSelect may help you simplify what is otherwise a complicated process.