Purchasing a car is a major investment, and naturally, you’ll want to keep it protected with car insurance. Several factors contribute to the cost of car insurance premiums. Thankfully, you can control many of these factors to pay a lower monthly premium and keep more money in your pocket.

Improve your credit rating.


Your driving record plays a significant role in determining insurance premiums, and surprisingly, so does your credit rating. Most insurance companies will consider a driver’s credit rating as part of the criteria for determining their insurance premium costs. Always know your credit score when shopping for car insurance, and be sure to pay bills in full and on time to maintain a positive credit rating.

Practice mindful driving.

Safe drivers get rewarded for practicing mindful driving. Traffic accidents and moving violations will raise your insurance premiums in no time. The cleaner your driving record, the better your chances of being offered an attractive discount by your insurance provider. Moving violations usually result in points on your driving record, and the more points you have, the higher your insurance premiums will go. Following the speed limit and avoiding accidents can easily save you five percent or more on your monthly premium.

Increase your deductibles.


A deductible is an amount of money you pay out-of-pocket in the event of an accident, theft or damage to your car before insurance kicks in. Deductibles usually range between $250 and $1,000, however, the lower the deductible, the higher the premium. Assuming you’re a careful driver and would rather pay more out-of-pocket in the event that something happens, you can reduce your annual premium by several percent by raising your deductible.

There are several factors that contribute to the cost of your insurance premium including your gender, type of car, location, driving record, whether you park in an overnight garage, and whether you choose any optional extras. Comprehensive car insurance helps cover the cost of damage that results from theft or collision, including the cost of repairs or replacement, and the cost of damages to a third party’s property.

You can quickly and easily compare car insurance quotes with iSelect.com.au to find the right amount of coverage that suits your budget, lifestyle, needs, and the type of car you drive. You can also discover all the ways you can lower the cost of your car insurance premiums, such as parking in a secure garage, driving less often, limiting the number of drivers on your policy, choosing a higher excess, and choosing to insure your vehicle for either market value or a lower agreed value. The experienced agents at iSelect.com.au can help you compare policies, review monthly premiums, inclusions, and exclusions, and purchase the right policy for your needs.

Larger cars cost more.


It costs far more to insure a larger car such as an SUV than a smaller, fuel-efficient commuter car. Some auto insurance companies offer drivers of hybrids or alternative fuel vehicles a discount for protecting the environment. Hybrids and alternative fuel vehicles are known for better gas mileage, fewer trips to the gas station, lower costs, and producing lower carbon dioxide emissions. Ethanol-gasoline blends containing 51 percent to 83 percent ethanol, known as E85, have fewer volatile components than gasoline and create fewer gas emissions from evaporation. Even a mere 10 percent ethanol blend can reduce carbon monoxide emissions and improve fuel octane.

Ethanol is derived from yeast through the process of fermentation. According to a brief overview by In Business Mag, the main purpose of fermentation is to convert a chemical compound known as NADH into the coenzyme NAD+ for reuse. The breakdown of glucose from enzymes releases energy in a process known as glycolysis. There are several types of fermentation including ethanol fermentation, which generates carbon dioxide and ethanol, and lactic acid fermentation, which generates lactate. Fermentation is valuable to the food and beverage industries in the production of alcoholic beverages, the leavening of bread, and the preservation of vegetables and dairy products. It’s also valuable in the production of alternative fuel sources that burn cleaner and last longer.

Discounts for Anti-Theft Devices


Installing an anti-theft device on your vehicle could earn you a discount on your premium. Certain types of security devices can lower premiums, such as car alarms and LoJacks. Before spending the money and time to install an anti-theft device, talk to your car insurance provider to ensure you will qualify for a discount and whether it’s enough to offset the cost of installation.

These are some of the quick and easy ways that you can save on your monthly car insurance premium and keep more money in your pocket.