Car insurance guide for women

If you’ve been on the same car insurance policy for the last five years it might be time to switch it up.

1533 0

As women, it’s common for us to stick with what we know, but if you’ve been on the same car insurance policy for the last five years it might be time to switch.

The hardest part about comparing your car insurance is knowing what to look for.

As a starting point, when that annual premium renewal letter arrives, take a good look st it.

It’s vital each year to check the premiums for your car insurance against others in the market to see if you’re still getting a good deal.

Premiums vary between providers and are based on a range of factors that you may never have even considered.

The top factors influencing how much you pay for your insurance include:

  • How insurers classify your home address
  • Your age
  • Whether or not you let young drivers drive your car
  • The age of the car you drive
  • The colour of your car
  • How your car is stored
  • Your marital status

What type of cover do you want?

Do you want to be covered for damage to your own car or just damage you might cause to other people’s property?

You’ll also need to decide whether you want ‘sum insured’ cover up to a certain value, or ‘agreed value’ cover up to the market value of the car.

Get as much cover as you can reasonably afford.

A good quality comprehensive car insurance policy should cover you for damage caused by car crashes, regardless of who was at fault, as well as natural disasters such as flood, cyclone, and hail, and theft.

If the thought of changing a flat tyre yourself on your way to work makes you want to call for help, then roadside assistance is one optional extra that can be worth its weight in gold.

If you have this cover, you don’t need to worry about paying for a tow truck if you should happen to break down, have an accident, get a flat tyre, run out of fuel, or lock your keys inside your car.

While you’re having these conversations, see if you can get a discount.

Most insurers offer a discount for buying a policy online.

Similarly, many car insurance companies offer a multi-policy discount if you buy other policies through them.

Discounts are also often available for drivers considered to be a lower risk, including:

  • Older drivers
  • Married couples
  • People with a long driving record
  • People who have taken a defensive driving course

If you’re driving less because you’ve switched your commute to public transport, you work some days from home, or you’re currently a stay-at-home mum, let your insurer know.

Quite often, if you’re driving less than a certain amount of kilometres per year, you may qualify for a cheaper premium.

Subscribe to Financy®

Get your Financy fortnightly fix with Financy Rewards, content and more. Plus each quarter you'll receive the latest Financy Women's Index, helping you keep pace with women's financial progress.

In this article