Discounts are common in the auto insurance world, with many providers choosing to reward drivers with a lower cost on their premiums for a variety of reasons such as: The different types of discounts are explained below.
No claims bonus
A no-claims bonus is a rebate on your car insurance given to drivers who have not made a claim in the past. The discount increases each year if the driver continues not to claim, usually up to a maximum number of years or a maximum percentage discount.
According to the government’s Moneysmart, comprehensive insurance providers who offer a no-claims bonus calculate the discount by looking at: how long you (and any other drivers on your policy) have been driving; Your claims history, including any claims made by other drivers on your policy; and your classification of your previous car insurer.
“Generally, ratings start at 6 and decrease by one for every year you don’t claim. For example, “Rating 1” drivers have not made a claim in the last five years (this is usually the maximum number),” explains Moneysmart.
For those who don’t have auto insurance history, insurers can instead look at your driving records to calculate your bonus – such as: B. Loss of minus points or traffic offences.
How the no claims bonus affects your insurance policy; how the claim affects the bonus; and all other terms of the bonus are then subject to each provider.
Drive less, pay less
Some drivers use their car less than others and only take it out of the garage for special trips or weekend trips. For these, certain comprehensive insurance providers offer a “drive less, pay less” deal by offering discounts on a policy.
Some comprehensive motor vehicle insurance companies grant this discount based on the number of kilometers driven per year, others can let the discount expire after the conclusion of the contract after a certain number of kilometers of the endometrium counter.
Other discounts
As with any insurance, there are other discounts from providers that have nothing to do with your ticket. These include discounts when buying a policy online; Discounts if you already have another policy with the same provider, e.g. B. travel insurance; and other promotional discounts that can happen throughout the year.
Discounts – and all the other benefits and exclusions of comprehensive car insurance – need to be carefully understood to ensure you’re not paying more than you need or that you’re accessing all the benefits. To ensure you know exactly what you are entitled to under your policy, always read the Product Disclosure Statement carefully. And above all: shopping. Many Australians are plagued by the ‘loyalty tax’ for staying with the same insurer year after year when they could get a better deal elsewhere.
Data research by Mia Dunn.
