In today’s challenging economic climate, managing your finances effectively is crucial. One area where you can make a notable difference is savings from your motor insurance. At Delmont Insurance Group, we understand the pressures of the cost-of-living crisis and are here to offer guidance on how to optimise your motor insurance management. Here are some key tips to help you through this period:
- Know When Your Policy Expires
It’s essential to be proactive about your insurance policy. Mark your policy’s expiry date on your calendar and set aside dedicated time to review your options well before it lapses. The process can be overwhelming amidst a busy schedule, but timely reviews ensure you’re not just renewing the same policy out of convenience.
Tip: Research specialty insurers that may not be heavily advertised. For instance, insurers like Australian Seniors cater to specific demographics and might offer competitive rates. Don’t wait until your current policy expires; start reviewing your options now to ensure you have adequate coverage.
- Review and Understand Coverage Options
Understanding the nuances of your coverage can lead to substantial savings. Here’s a few to consider:
- Market Value vs. Agreed Value: Many assume agreed value cover is necessary for adequate protection, but it’s often more expensive without providing additional benefits.
- Additional Costs: Features like hire car coverage and windscreen excess waivers can increase your premium. Assess whether these are necessary for your situation.
- Limited Km Cover: If you drive infrequently, look for policies that offer lower rates based on mileage.
- Age Limits: Some insurers offer discounts based on the age of drivers. If applicable, this could reduce your premium.
Every element of your policy can impact pricing, so tailor your coverage to your needs.
- Consider Insurance & Service Costs When Buying a Car
The cost of owning a vehicle extends beyond the initial purchase. High-end or European cars often come with higher insurance and maintenance costs. Before buying, research the average service and insurance costs associated with the vehicle. Sometimes, a more affordable car might offer substantial savings in the long run.
- Monthly Payments vs. Annual Payments
Paying your premium monthly can lead to higher overall costs compared to paying in full. While you might need to opt for monthly payments during a cost-of-living crisis, be aware that this could add an extra 10% to your annual cost. Evaluate your financial position and consider paying annually if feasible to save money.
- Can You Afford to Be Uninsured?
Choosing to forego insurance to save money can be a risky decision. Without coverage, you face the full financial burden of any potential damage or loss. Even if comprehensive insurance feels out of reach, consider maintaining at least third-party insurance. This minimal coverage can protect you from significant liabilities if you’re involved in an accident that damages another vehicle.
- Ask for Help
Insurance brokers, like those at Delmont Insurance Group, are valuable resources. They can provide expert advice and help you navigate your options to find the best policy for your needs. A short consultation could save you money and give you peace of mind.
For personalised advice and assistance with your motor insurance, contact us at (08) 6184 8724 or visit Delmont Insurance Group. We’re here to help you manage your insurance effectively, even in challenging times.