3 tips to lower your car insurance premium

Want to save on car insurance costs? Use these 3 tips from RACQ and save on your car insurance premiums the next time you renew or add a policy.
family inside car

Paying less for car insurance that still covers what you need can be a great savings. When shopping around for a new policy or renewing your existing one, know that you've got choices.

Here are three things you can do to potentially lower your car insurance premium and keep more money in your pocket:

1. Increase your excess

Increasing your excess is the most obvious way to lower your car insurance cost. Choosing a higher excess means you will pay more out of pocket if you make a claim. Increasing your excess may lower your premium as you are agreeing to take on a higher portion of the financial risk in the event of a claim.  

2. Limit the number of drivers

Insurers base your car insurance premium on risk. Having multiple drivers or young, inexperienced drivers on your policy increases that risk. They're not as familiar with your car and haven't spent as much time on the road.

Of course, you'll want to insure based on your needs. If there are others who need to drive your car, they should be appropriately nominated on the policy. However, where possible, limiting the number of drivers on your policy may help lower your car insurance price.

3. Pay your premium annually instead of monthly

While the other two tips have to do with adjusting your policy, this last one relates to how you pay.

We know not everyone has the cash on hand to pay their car insurance for the entire year in one go. However, if you can plan for it, you could enjoy a lower premium by paying upfront compared to paying monthly instalments. 

Making sure you've got the right cover also means ensuring that you're not paying for more than you need.

When you're ready to renew, make changes, or taking our a new policy, RACQ is here to help.

RACQ helps you save on auto expenses

After saving on your car insurance premiums, why not save on the rest of your auto expenses?

With your RACQ membership you have access to great benefits and discounts on:

Get your car insurance quote
Drive with the confidence of knowing you’re with RACQ. Get your RACQ Car Insurance quote in minutes.

Related topics

Things to note

The information in this article has been prepared for general information purposes only and is not intended as legal advice or specific advice to any particular person. Any advice contained in the document is general advice, not intended as legal advice or professional advice and does not take into account any person’s particular circumstances. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives and needs.

Insurance products (excluding Travel Insurance) are issued by RACQ Insurance Limited ABN 50 009 704 152 (RACQ). Conditions, limits and exclusions apply. This is general advice only and may not be right for you. This information does not take your personal objectives, circumstances or needs into account. Read the PDS and any applicable Supplementary PDS before making a purchase decision on this product. You can also access our Target Market Determinations on this website.