How to organise Car Insurance

Think insurance before buying a car

Always factor in insurance costs before you buy a car. If you’re under 25 and buy that Turbo SUV before you add the insurance costs, you may be in for a supercharged surprise at the final price tag. Or you might have a tough time finding an insurance company that will cover you against an accident.

On the other hand a newish Lexus sedan may be even more affordable than the sporty turbo, because safe, yuppie drivers drive Lexus cars. Even ordinary cars can vary widely in insurance premiums because of different repair costs and risk profiles.

Shop around and compare prices

Premiums can vary by 300 per cent for the same driver at different insurance providers. Haggle with the best of them. Remember even compulsory insurance (covering damage to third parties you injure) costs can also vary if insurers deem cars or drivers risky. The NSW Motor Accidents Authority provides online quotes.

Get third party cover as a minimum

Third Party Property or TPP is the cheapest way to get insurers to carry risks like banging up a $100,000 Mercedes and it’s commonly used for old or exotic cars which can be expensive to insure.

It covers damage to others of up to $20m. TPP (fire and theft) insurance is the most basic way of covering damage to your vehicle as well. It’s less common in Sydney (Australia’s car theft capital) than in other parts of the country and costs a higher premium.

Be upfront and check the fine print

Traps with insurance companies abound and it pays to be honest – they will throw out phoney claims and cancel a policy, making it hard to find another. They will not pay up for damage if you let someone drive the car who was intoxicated or unlicensed or not authorized.