The premium on your car insurance depends on how risky the insurance company perceives you and the possibility of filing a claim in the future. Insurers adopt different measures to determine the risks and some of the common factors that determine the car insurance premium include your age, gender, frequency of driving, claims history, and driving experience and history.
If you have a history of traffic infringements or suspended license or made several claims, you may be categorised as high-risk, which can substantially increase the cost of car insurance. The type of car and other factors can also increase your riskiness and impact the car insurance premium.
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This article is over two years old, last updated on June 2, 2022. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent car insurance articles.
Even if you’re perceived as a high-risk driver, you can still get car insurance cover albeit at a higher premium. While looking for high-risk car insurance in Australia, it’s important to disclose all relevant information about your driving and claims history. If you withhold this information, it may void your cover later.
Different insurers treat high-risk drivers differently. Some insurers may have stricter restrictions and charge higher premiums when compared to other companies. You can consider smaller coverage like a third-party cover only. Getting multiple high-risk car insurance quotes and comparing what is covered and what isn’t is important to make an informed choice.
Insurers may offer discounts on online policies or if you’ve multiple covers with the same company. If you don’t make a claim, you may receive no claim bonus even if you’re high-risk at the time of buying the policy.
Reducing the risks of damage or theft by parking your car safely, such as within a garage or carport, may help reduce the premium. You may also buy a car fitted with security and safety devices or install these to reduce the risks.
Excess is the amount you’ll pay in case of a claim and the balance is paid by the insurer. Although choosing higher excess can reduce the premium cost, you need to consider if you can afford to pay this amount in case of an accidental claim.
Only third-party coverage is mandatory. If you opt for additional comprehensive coverage, it impacts the premium. Consider other policies like third-party property, fire, and theft coverage, which are more affordable. However, consider what is included and excluded before making your choice.
Some insurers offer discounts if you don’t use your car regularly, or drive under a certain kilometre cap each year, such as less than 10,000km. Some pay-as-you-go policies allow you to set a kilometre limit and offer lower premium when you don’t exceed it. Choose public or other modes of transportation when possible to reduce driving your car.
For example, some companies may be willing to provide you insurance if you only have one DUI offence. Generally, DUI stays on record for 10 years but in some states, it isn’t removed unless you give limited access or have it removed. You may want to consider taking a safe driving course to boost your chances of approval by the insurer.
This article was reviewed by Alex Ritchie before it was published as part of RateCity's Fact Check process.
