Tips for Comparing Car Insurance Companies

Tips for Comparing Car Insurance Companies

As excited as you are about getting a new car, it is important to also be wary of driving it. Car insurance is a must-have to ensure you are properly protected on the road, as well as those around you. There is a wide choice of policies when it comes to auto insurance, and it’s important to find the one that is best suited to your ride.

Here are a few tips to keep in mind when comparing car insurance companies side-by-side and figuring out what coverage is best for you.

Knowing Your Policy

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It’s important to have an understanding of any insurance policy you are listed on, especially with certain states having deviations in what is required by law. When it comes to car insurance NSW, for example, drivers need Compulsory Third Party (CTP) insurance before they can register their vehicle. CTP, also known as green slip, protects you from being financially liable if you injure yourself or someone else while driving.

In New South Wales, green slip coverage is available through multiple insurers, allowing you to compare insurance premiums and exclusions of these policies. Usually excluded is damage to your or someone else’s vehicle in the event of a car accident, or if your vehicle is stolen. This is why drivers look into what insurance providers have to offer in terms of additional insurance coverage.

There’s third party property damage car insurance, which can cover damage to other people’s vehicle or property caused by you in an accident. Drivers may also opt for comprehensive car insurance, the highest level of coverage in NSW. This can include covering your own vehicle for accident damage, fire and theft, and damage to other people’s cars or property.

Look for Value

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When it comes to choosing any auto policy, the cheapest option isn’t always the best. It’s a good idea to look into online comparison tools to determine the best bang for your buck as a vehicle owner. Whether you are looking for just green slip insurance or comprehensive coverage, check and see the cost of your insurance premiums for how much your auto insurance policy offers.

It is important to also consider adjusting your excess on your coverage, as reducing this could lower your monthly premium. Above all else, look into what is listed under “exclusions” in an auto policy. This can include events like:

  • Mechanical failure and wear and tear
  • Vandalism and other intentional damage
  • Damage caused by an impaired driver
  • Storm damage

It also helps to see what freebies are available for your insurance policy. Some auto insurance companies offer up free roadside assistance for when your car breaks down, as well as free towing in the event you are involved in a car accident.

Consider Premiums and Discounts

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Car insurance companies determine premiums in their own way but take into a variety of factors for calculating your monthly and annual costs. Insurance premiums can be impacted by things like where you park your car at night, the intended use of the vehicle, and even the age of the driver.

Vehicle owners have options at their disposal to reduce their premiums, depending on your insurer. Some auto insurance companies provide savings on your policy if you maintain a good driving record. Choosing to insure market value instead of nominated value can also save policyholders money.

Market value is the amount your car would have sold for at the time of your car accident, whereas the nominated value is a fixed amount that’s decided on by you and your insurance company.

Multi-policy discounts are available through some underwriters, with policyholders also being rewarded for how many years you stay with an insurance provider. Be sure to look at all the options on the table before settling on a policy, making sure you’re safe on the road but also protected financially.

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