Car insurance can be a complicated product for some of us to understand. How do insurers come up with the price you pay each month? Should you switch, or stick to one insurer?

In an effort to demystify the world of insurance, we’ve answered some of those questions for you.

What’s involved with switching insurers?

You may think that switching insurers is a complicated, mess of an experience. However, we sum it all up in two steps: cancelling the policy, and finding your new one. There’s a little bit more to it than that, but switching car insurance isn’t as hard as you think!

How is my insurance calculated?

Your car insurance is calculated based on a number of factors, including:

  • Age of the driver
  • Your vehicle
  • Where you park your car
  • Your insurance excess
  • The type of driver you are (e.g. you only drive 10,000 km per year)
  • The type of insurance you hold (e.g. comprehensive, third party fire and theft)
  • Whether there’s finance on the vehicle.

Does my insurance premium increase as my car depreciates?

This is an interesting question, because on one hand, a car that’s worth less costs less to replace. However, newer cars typically have newer, and potentially safer technology fitted as standard (e.g. antilock brakes, traction control, immobilisers). You also have to consider a number of other factors related to whatever car insurance policy you hold. Learn more about vehicle depreciation and insurance to see how it’ll affect you.

What’s the benefit of comparing different providers?

There are countless reasons why looking for new car insurance is a good idea. For one, you could be missing out on great extras, like free roadside assistance membership. Or perhaps you are missing out on a better value policy. Here are four big reasons to compare.

If I stay with one insurer for a few years, will I save?

Australians are a loyal bunch. We like to stick with people who ‘do us right’, and look after our best interests. In some cases, loyalty can save you money on your car insurance premium. But in others, it can be a costly exercise to not shop around.

So, is it worth remaining loyal to one insurer? You be the judge.

How else can I save money off my car insurance?

We’ve spoken lot about saving money in this article, but there’s still more ways you can be shaving dollars of your bills. Here are just five ways to save: ranging from stripping off extras, to boosting your excess. Take a look to see what’s right for you.

Do I pay more for insurance through your site than if I purchased directly with an insurer?

Absolutely not. The premiums we offer here are the same as you’ll find on the insurer’s website..

We want everyone who visits our site to be comfortable with this proposition, so we developed a Price Promise. If you find a better price on the same policy from the same insurer within 30 days of purchase, we’ll give you a $50 Eftpos Gift Card. Click through the link above to learn more about this.

This is a lot of information to take in! Shopping for new car insurance can be a trial, but we’re here to help you every step of the way. If you’re ready to take the next step, try comparing comprehensive car insurance with our comparison service – to see if you can track down a better deal for yourself.