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How to save money on car insurance – 5 useful tips


Aussies sure love their cars, and we rely on them a lot to get us where we need to go. With all that time out on the road, though, it’s important to make sure you’re covered if something goes wrong.

With all of the other expenses associated with cars, it might not be super appealing to drop more cash on car insurance. However, there are ways that you can make sure you’re covered and save some money in the process.

Compulsory Third Party (CTP, or Green Slip in NSW) only cover injuries, so it can pay to invest a little bit more in your car insurance. But that doesn’t mean your cover should completely blow your budget. Check out our top 5 ways to save on car insurance to make sure it doesn’t.

1. Buy your car insurance online

Some insurance providers offer benefits for buying your car insurance online. That means it’s not only an often more convenient way to go, but it can also leave a bit more spending money in your bank. 

For example, when you buy AAMI Comprehensive Car Insurance online, you can get a $50 discount on your policy. You can still choose what features suit you best and enjoy the flexibility of setting the amount that you’re covered for.

There’s also a $20 discount on AAMI’s Third Party Car Insurance when you buy it online – if that’s the policy that suits you best.

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2. Choose a higher excess

Okay, hear us out. We know this might sound a little counterintuitive, but making your excess higher can actually reduce the amount you have to pay for your policy. It’s definitely a personal decision, and one you should make after considering all the facts, but if it can be a viable way to save on the upfront costs of your car insurance.

AAMI Flexi-Premiums allow you to change your excess level, making it higher or lower depending on your circumstances and how much you want to pay for your premium.

3. Pay annually instead of monthly

Did you know that if you pay out your AAMI car insurance premium in one, annual lump sum, it works out to be cheaper than the total amount you’d pay across a year if you did so in monthly instalments? It’s not necessarily the most viable option for everyone, but if you can afford to pay a larger sum once per year, it could be worth looking into.

4. Drive safely 

Drive safely seems to be sage advice in general, but it can also potentially save you some money on your car insurance premium. AAMI’s Safe Driver Rewards program means that for every consecutive year you choose AAMI’s Comprehensive Car Insurance, and you don’t have to make a claim for an accident that’s your fault, you can earn discounts on your policy. 

So, aside from the obvious, it can really pay to keep safe on the road.

5. Look after your vehicle 

Again, looking after your vehicle may sound like a no-brainer and something you should do anyway, but the benefits of doing so are not to be underestimated. By keeping your vehicle in good nick and maintaining a record of your trips to the mechanic, you significantly lessen the risk of losing your cover (check your policy documents to see what you are and aren’t covered for) if it isn’t considered to be roadworthy.

It’s advisable to make sure you’re always on top of replacing worn out tyres, brakes and defective lights; fixing any paint problems; and repairing any areas of major rust, worn upholstery or scratches and dents.

When it comes to budgeting and saving, we know that every dollar counts. By following these tips for saving on car insurance, hopefully you can set aside money for those slightly-more-exciting things in life!

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AAMI Car Insurance, NSW and ACT CTP Insurance, and Caravan Insurance are issued by AAI Limited ABN 48 005 297 807 AFSL 230859 (AAI) trading as AAMI. Any advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it. Please read the relevant Product Disclosure Statement before you make any decision regarding this product. The Target Market Determination is also available.