What is the best car insurance?

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Car Insurance

There is no single best car insurance policy. It all depends on your wants and needs.

If you’re driving a flashy new Mercedes, it’d be a smart idea to take out comprehensive cover as you’ve got a lot more to lose. Imagine writing your car off and being $100k out of pocket. Doesn’t sound ideal, does it?

But if you’re driving a piece of junk, third party property damage could have the cover you need as you’re not paying to replace a car you (probably) wouldn’t miss.

The most important thing when shopping for car insurance is to not be fooled simply by price. Sure, price is definitely a factor as you don’t want to pay an arm and a leg for cover. But if you’re opting for a cheaper policy, ensure it’s actually got the cover you need. It’ll save you more dosh in the long run.

What is the best car insurance for those who don’t drive much?

If you’re a pensioner who doesn’t drive much anymore, or anyone else who only uses their car occasionally, Pay As You Drive is an option offered by some car insurers that rewards drivers with lower premiums if they travel less than the average 15,000 kilometres a year. If you think you qualify for this cover, it can be a good way to reduce your premiums. If you aren’t sure or you think you might be on the cusp, here are some ways to cut down on your driving time:

  • Carpool several times a week
  • Catch the train or bus to work
  • Plan your errands for one trip per day instead of taking lots of little trips
  • Take the most direct route, by distance, to your destination

What is the best car insurance for younger drivers under 25?

If you’re a young driver (under 25), or a P-plater, it can be hard to find the best* value car insurance. Due to inexperience, these groups are at higher risk of having accidents. If you’re in this demographic you will be hit with higher costs, but there are still some things you can do to reduce your premiums. These include:

  • Choosing a car that’s cheaper to insure. Remember that a more expensive car not only costs more straight off the bat, but will also cost more for as long as you use it.
  • Taking a defensive driving course, such as the free one offered by AAMI
  • Having a consistently safe driving record, which will gradually decrease your premiums over time
  • Being a nominated driver on your parents’ insurance (although this will likely increase their premium)
  • Increasing your excess to an amount that’s high but affordable
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