1. Compare quotes
It’s easy to rush into an insurance agreement when you get car insurance for the first time, and even easier if signed insurance papers are the only thing holding you back from getting your hands on your first car.
However, one of the easiest ways to find cheap car insurance for 25 and over drivers is to run through some insurance comparisons to find the cheapest available rates.
2. Reduce your level of cover
This is one of the simplest ways to reduce your overall insurance costs. Taking one of the more basic insurance options we have discussed will save you money every month.
However, while you will make monthly savings, you could suffer a massive financial setback if you are involved in an accident and have to foot the bill for damage to your or someone else’s property or car.
This should therefore be the last resort for lowering your insurance costs.
3. Think before you buy a car
The type of car you drive is going to be the single largest factor in determining what you pay for insurance as a new driver over the age of 25.
While insurers don’t know how well you drive, they have very detailed statistical information on different car models, including accident rates, how likely they are to be stolen and how expensive they are to repair or replace.
To avoid paying more than you have to on a car, consider:
- driving an affordable, mainstream entry level car while you are still new to driving
- avoiding any after-service modifications to your car. It’s also a good idea not to make your car too customized even when choosing between pre-purchase add-ons
- avoiding high performance cars or cars with large engine capacity.
3. Reduce the distances you drive
It’s a statistical fact that the more time you spend at the wheel, the more likely you are to have a car accident at some point.
This basic fact is recognized by most insurers, and as a result you can get cheaper car insurance by limiting how far you drive every month.
4. Increase your insurance excess
When you sign up for comprehensive car insurance you’ll typically have the option of choosing how much excess you will pay in the event of an accident.
If you choose a higher excess payment you will be rewarded with cheaper insurance rates.
While this is a very tempting way of reducing payments if you’re a careful driver, it’s a bad idea to raise your excess to the point where you’d struggle to pay it if you were in an accident, even if you will save money in the short term.
5. Use a telematics insurer
As we have mentioned, lack of a driving or claims track record is a major challenge faced by new drivers.
Fortunately, this has changed with the introduction of telematics insurance into Australia.
Telematics insurers are able to very rapidly build up a highly detailed picture of how well drivers at any level of experience drive.
This is done using cutting-edge telematics technology which is able to accurately track driving behaviour in real time.
Whereas a no-claim history takes years to build up, telematics insurers can get an extremely accurate idea of how well you drive by tracking your driving for a few weeks.
They can then use this to ensure you pay fair rates on your car insurance policy.
In Australia, UbiCar offers telematics insurance via its mobile app.