iSelect is one of the insurance companies in Australia. Certain companies operate in certain states, while other companies have a national presence. In such a scenario, it is not surprising that the car insurance options available to an average individual are affected by the presence of so many service providers.
Some companies may specialize in policies for middle-aged female drivers that are considered the safest. On the other hand, some other companies may be prepared to assume a high risk policy as long as they earn a higher premium than other service providers. In such a scenario, how should one compare the policies offered by Australian insurance companies? Policies may differ, but there are certain points that remain common to all companies.
The situation exists because all companies work in an industry: the insurance industry. Risk assessment, correlation between the premium and the risk, correlation between the premium and the insured’s ability to bear a certain percentage of the risk: these factors remain the same for all insurance companies, regardless of their customer base.
Why is it important to understand these factors? Will it help you find the right insurance policy for one’s car? Well, understanding certain factors and aspects that evoke the same reaction from all insurance companies will facilitate the negotiation process. Offering to pay a higher deductible will always have a positive impact on the premium. The outflow of the premium will remain the same, even if the amount of coverage increases, since the deductible charged in the policy will be greater than before.
Managing car repair from your own pocket instead of filing a claim in the insurance policy will help the individual enjoy an unclaimed bonus. The bonus percentage depends on the number of consecutive years in which no claims have been filed.
It doesn’t matter if you are a high risk customer or if you need insurance for a vehicle that insurers consider high risk. Failure to file a claim on the insurance policy automatically will help you enjoy a higher claim-free bonus the next time you renew the policy.
Understanding and manipulating these points will help reduce premiums to affordable levels. You can also proceed to consider the individual and unique characteristics of the insurance service provider to negotiate a further reduction of premiums charged. Starting with common points will help you get the cheapest option before continuing with the negotiation.