Paying car insurance premiums every year can be a painful experience particularly for many people who have never claimed or who have not claimed  in years. However, as well as being compulsory, car insurance is vitally important for those unexpected events and to know that we can ‘sleep easy’.  

There are however, a number of ways you can ease the burden.  These might require 30 minutes of work each year but can result in saving you many hundreds of dollars in premium or thousands over the life of your car.

The following top 10 tips to save money on your premium are provided by a 20 year industry ‘insider’

1. Don’t just go back to your trusted agent each year.  For every year of your policy you are paying on average 15% of the premium in commission or $185 for the average car insurance policy.  If you have a policy for say 5 years that is $925 !  
2. Try the direct insurers such as DirectAsia.com who promise to save you the agent commission keeping your premiums down. 
3. Get a new quote across a minimum of 3 insurers every year.  Most insurers recalculate their premium each year independently using what they call ‘rating factors’.  This means premiums can vary hugely from one insurer to the next for your particular circumstances.  Some will be more competitive for different driver ages, vehicle types and usage and this often can change hugely from one year to the next.
4. Look at how your insurer manages your claim.  If you feel there is not a lot of control then there is a likelihood you will end up paying more premium to cover the increased cost of claims.
5. Look at your policy features – do you really need them all?  If you go through an agent you might end up paying for all the ‘bells and whistles’ that are not really appropriate for you.  The direct insurers like DirectAsia.com and Aviva provide you with the option to select your own policy features.
6. If you have more than one car do you really need cover for younger drivers on both or could one be used for young drivers and the other kept only for your use?  The age of the drivers can significantly impact your premium.
7. Look at the payment terms.  DirectAsia.com is one insurer that offers monthly instalments at no extra cost – this means that you can keep the cash in your pocket and only ‘pay as you go’.
8. Drive safely! An accident that is your fault can cost you both an excess and a loss of No Claim Discount increasing your premium next year.
9. Decide do you really need your choice of repairer?  Some insurers will provide a discount if you choose their repairer as they can reduce costs through ‘bulk purchasing’.
10. When buying a new car always, always get a premium comparison before you buy.  There are very big differences in repair costs across different brands and types of cars (even those of similar value).  Insurers know this and this can mean you will be paying more in premium for the life of the car.  The dealer is not a good place to get this quote as they may discount the initial premium to sell you the car but you end up paying thereafter.