Beginners Guide To Car Insurance

car insurance

Beginners Guide To Car Insurance

choosing an insurer for your vehicle can be a tough process but there definitely are a few things you should consider doing to reduce your premium depending on the type of vehicle you are ensuring welcome back to my channel in today's video i'm going to show you an example and explain what i think you need to consider doing before taking out an 

insurance policy for a vehicle off the bat i want to mention that in australia you are required by law to have compulsory third party insurance but the way that you buy it depends on where you live within australia in victoria western australia tasmania and the act or australian capital territory compulsory third party insurance is included in your registration costs for south australia which is where i live your compulsory third party insurance policy is encapsulated again 

within your car registration fee however you get to decide who the provider of that insurance is in new south wales it is better known as a green slip so new south wales and queensland are in the same category for this type of compulsory third-party insurance and they require you to have ctp before even being able to register your vehicle to drive on their roads compulsory third-party insurance covers the cost of compensation for people injured or killed in a motor 

vehicle accident it does not cover the cost of damage to a vehicle or property and specifically it does not cover the cost of damage to your vehicle or your property so with that out of the way having a cover to protect your property and your vehicle probably is in your best interest so let's go through the process in how you go about finding the best insurer for you figuring out the type 

of insurance that you need depends on a few factors and that is what type of cover do you actually need for the vehicle you're driving and how much are you willing to spend on that cover for example if you're not wanting to spend too much money on covering your vehicle but still want to have a little bit of extra protection against minor damage and things like 

fire and theft then third-party cover is the type of cover you want if you're not too worried about the cost and are happy to spend a little bit extra because you want that extra cover for things like theft and damage of your vehicle on top of third-party cover then full comprehensive or comprehensive insurance is the type of cover you want to look at they're your 

two main options depending on the vehicle that you're driving and in my circumstance and almost all of my own friend circumstances most people generally go with a comprehensive cover because the vehicle you're driving is something that you would need to potentially replace if it were to get written off on the road my recommendation when searching for motor vehicle insurance is to get at least five quotes from different insurers and then to compare them and i'm going to 

take you through an example shortly to show you how i would go about doing this but before i get to the example i have left a list in the description below which will show you all of the companies which provide motor vehicle insurance within australia i'm going to take you through filling out an example quote for one insurer i have specifically chosen the raa as i have my own car insurance with them and i know that their online coding system is pretty good most insurance 

companies have a good online quoting system so to get your five quotes it should be a pretty simple process so let's get into it so i'm gonna simply search them as a company i'm going to look up get a quote online now and it's going to take me to their portal where there are five sections i need to fill out starting with what the vehicle is so i'm going to put my car in which is a 2010 subaru wrx and then i'm going to continue on so the vehicle use will be private i'm going to put in 

my postcode which you aren't going to see because that is personal information and then we get to the customizable questions so these questions here is what's going to determine if you can reduce your premium at all so i have my card garage from time to time at home and at work now you need to understand that what you pick here will adjust the price of your 

premium i would always encourage you to select garage even if it's not in a garage predominantly so i've selected garage for the purpose of this quote same thing goes if you're not an uber driver or you're not doing ubereats and driving a lot i would always select less than 5000 k's because it's going to bring your premium down a little bit more than selecting those other options so now they look for some purchase info so i haven't purchased this car in the last three months 

so i'll select no is the vehicle financed no there's no finance on it if it was you would need to disclose that information and then it brings you to driver details now i'm going to fill it out and you're going to hear my voice as i'm filling it out but you're not going to see what i'm filling out because that would be my personal information being put onto the world wide web which is not something i want to do and finally we move on to the final stages of the quote so 

do you want this person to be named as a policy holder so yep the policies for me am i an raa member i am but i'm going to select no for the purposes of this example how often will the person drive the vehicle so i am the main driver and at what age did i get my license i was 16 years old when i got my license has this driver held comprehensive insurance for the past 12 months yes i have and the previous insurer was i believe it was sgic it was a little while ago they will ask you for a no claim rating so what is the rating every year that you don't make a claim your no 

claim rating goes up with an insurer i had the highest rating and the way it works is by going from lowest to highest number so the lowest number means you are a good customer the higher the number means you may have had to make some claims based on accidents and that will again adjust the price of your premium so be careful with that one my no claim rating was number one so i selected number one so that only took a few minutes to fill out and i'm 

already about to get a quote after i select the date that i want the policy to commence which i'm going to select tomorrow just for the sake of this example so by selecting get quote it should pop out a number and i should be able to adjust a few more things to reduce that premium further so here are my options i have full comprehensive third party property fire and theft or just third party which is what we spoke about at the very beginning which is the compulsory third party insurance so here is my premium it will cost me 79.75 per month or 957 dollars per year now before i go any further again i can take another step and change this premium by changing my excess so 

what's in excess essentially if you have an accident or you need to make a claim you will be required to pay this amount regardless of what the claim is here's the example so if i put four hundred dollars as an excess or i smash into someone and i'd write off my card completely therefore my premium will increase because i'm paying a smaller excess whereas if i select the maximum excess which i personally do do this it will be a cheaper premium 

i've never needed to make a claim i feel like i'm a relatively safe driver and the only time i'm really going to be making a claim is if i ride off my car so i always generally go towards the higher end excesses so if i was to go for the 1300 excess i would be expected to pay 757 dollars per year for my insurance you can change between the different types of cover such as third party and then play with the excesses as well to see how much it will reduce your premium i'm going to stay on comprehensive because that's the one i would go for all you need to do then is either continue to purchase or save the quote where they will email it to a 

personal email do that for five of these insurers and then start the conversation with them to basically figure out if you can reduce that premium anymore now this premium might seem high i drive a performance vehicle and i'm only 25 years old that's my decision and that's why the premium is so high in your instances the premium probably won't be as high as what you're seeing on the screen right now but this is in a nutshell as simple as it is to get a quote from an insurance company and then the negotiation can begin once you have your top three quotes 

i would encourage you to ring each of these companies and negotiate that quote further down the simplest way to do this is to ring each of them and provide them with the quote that you've been provided by other companies and then ask them to beat it if they can something that you absolutely need to be aware of is actually understanding what the cover you're choosing is going to provide this is something you need to do your research into i can't stress it enough each insurer will have a product description of what the cover or the level of cover you're planning to take out offers make sure you read through it extensively and 

understand what you will be covered for in the event of you having damage to your car or you being involved in an accident this video was supposed to provide insight in how to bring down your premium and what information to provide an insurer for a motor vehicle when looking to take out a policy making sure that you get the most out of your cover for a decent price i hope you learned something in today's video i hope that the guide was helpful and i wish you good luck in looking for a cover for your motor vehicle if you enjoyed the video please consider liking and subscribing and as always i will see you in the next one

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