Finding the right car insurance can be a daunting task, especially for those who don't drive often. In Australia, various insurers offer tailored policies that cater specifically to low-mileage drivers. Here, we outline some of the best options available, highlighting their benefits and key features.
1. Pay-How-You-Drive Policies
One of the best options for infrequent drivers is a Pay-How-You-Drive policy. These insurance plans utilize telematics technology to track your driving habits. If you drive less, or if your driving is less risky, you'll pay lower premiums.
Insurers to Consider:
- NRMA: NRMA offers a Safe Driver Discount program that rewards low-mileage driving with significant savings.
- QBE: QBE's Drive Easy program bases premiums on driving behavior and can be particularly beneficial for occasional drivers.
2. Restricted Use Insurance
Restricted use car insurance is another viable option for those who drive infrequently. This type of coverage typically limits the number of miles you can drive each year, providing lower premiums as a result.
Insurers to Consider:
- Allianz: Allianz offers a flexible comprehensive plan where you can choose your yearly mileage limit, making it suitable for casual drivers.
- AAMI: AAMI also provides specialized coverage, perfect for those who only occasionally take their car out.
3. Comprehensive vs. Third-Party Insurance
When choosing car insurance, it is essential to understand the difference between comprehensive and third-party insurance. Comprehensive insurance provides coverage for your vehicle in case of damage or theft, while third-party insurance covers only the damage you might cause to someone else's vehicle.
Infrequent drivers who might use their vehicle sporadically could consider third-party insurance as a budget-friendly option if they feel less need for comprehensive coverage.
4. Consider the No-Claim Discount
Many insurers offer a no-claim discount for drivers who maintain a clean driving record. This discount can be particularly appealing for infrequent drivers who may go for lengthy periods without filing a claim. Be sure to ask about this potential saving when comparing policies.
5. Usage-Based Insurance (UBI)
Usage-based insurance plans are gaining popularity among Australian insurers. These plans adjust your premiums based on your actual driving behavior. The less you drive, the lower your rates could be.
Insurers to Consider:
- RACV: RACV’s UBI policy is easy to use and helps save on premiums for those who don't drive much.
- Budget Direct: This provider offers competitive UBI options with a straightforward sign-up process.
6. Compare Quotes and Read Reviews
When searching for the best car insurance for occasional drivers, it's wise to compare quotes from multiple providers. Websites such as Canstar and Finder are excellent resources for comparing different policies.
Moreover, reading customer reviews on platforms like ProductReview.com.au can provide insights into the insurer's customer service and claims process, ensuring you make an informed choice.
Conclusion
Choosing the best car insurance for people who don’t drive often in Australia requires a careful evaluation of your personal driving habits and insurance needs. By considering options like Pay-How-You-Drive or restricted use insurance and leveraging discounts, you can find a policy that suits both your lifestyle and budget. Take the time to compare quotes and read reviews for the best possible outcome.
