Save money on insurance

What you do next could save you quite a bit of money. Consumer group Choice suggests that instead of automatically renewing, you should shop around first.

"The main thing people do is when their renewal comes through they just send that off because they think that is the best they can do," says Choice media spokesman Christopher Zinn.

"That may be the case, but they should at least check to see what is out there."

"The car insurance industry is very competitive at the moment and the policy offers are always changing."

He said that just because people had built up loyalty with an insurer did not mean their premium would not increase, nor that another insurer wouldn't offer better.

"Don't assume that if you have a protected no-claims bonus, for example, that they won't increase your premium," he said.

"Some insurers will increase your premium even if you make a no-fault claim."

"And here's a tip: if you talk to your insurer about moving to another insurer, then they can sometimes offer a better deal to keep you."

Choice has provided a range of tips to getting the right car insurance at the right price.

THE RIGHT POLICY

Zinn said consumers should make sure they have the right policy for them.

"Not everyone should get comprehensive insurance," he said.

"Some people might be better off just with third party. It is possible to overinsure your car."

Compulsory third party (CTP or green slip insurance) is the most basic cover and every car must have it. It provides essential cover against claims for compensation if you injure or kill someone in a motor accident. Shop around as the prices vary. If your car is not worth much you may think taking out CTP is enough. However, it doesn't cover you for damage caused to other people's property such as hitting a luxury car.

Third party property is the least expensive option. It covers you for the damage you may cause to another car and may include limited cover for damage caused to your car by an uninsured driver. Third party property, fire and theft also covers you if your car is stolen or burnt.

Comprehensive car insurance is the best cover option but also the most expensive. It includes the cost of crash repairs or replacing your car, even if you're at fault.

OTHER TIPS

Insurance companies ask much the same questions, but you can also volunteer extra information that may have a bearing on your premium, such as your good driving record, any driver training you may have done and extra security you have in your garage or on your car.

You can get a discount by restricting the age of the drivers you nominate to be covered by your policy. Insurance for young male drivers can drive up the excess and premium.

Don't get pushed into a cheaper insurance premium by having a high excess. It then isn't worth your while to make small claims.

It is important to be straight and truthful in the information you provide your insurer as failure to disclose could nullify your policy.

Look for no claims bonus discounts. They can be worth up to 70 per cent savings.

Some insurance companies offer discounts if you have other vehicles insured with them or other insurance policies with them, such as for your home, contents, boat etc. It is worth