The road to cutting costs on your car.
Sssssh… Oh no! What’s that leaking sound? It’s your car slowly draining your bank balance. Getting your license and buying your first car is a rite of passage that grants you a wealth of freedom and responsibility. It’s also a time in your life when money becomes real as personal loans, fuel, registration and insurance costs mount up.
For drivers under 25 years old, insurance costs in particular can seem like a real thorn in the side; premiums for young drivers are higher due to the fact that they are involved in a higher percentage of serious accidents. But all is not lost – you can save on costs associated with your car when it comes to insurance, and reduce the running costs of your sweet ride.
Looking after your existing car
- Assess your driving habits. Speeding, heavy breaking and heavy acceleration are not the ways to save money. If you’re more Fast & Furious than Mr Bean, consider driving more calmly on the road, sticking to the road rules, and you’ll be amazed just how much further your dollar will travel.
- Service your car regularly. Paying for a service every few months may seem excessive, but having your vehicle running in top condition will do more for your wallet than skipping services and only doing it once in a blue moon.
- Check your tyres are at the correct pressure. If your tyres are 25 per cent too low in pressure, it can increase your fuel consumption by two per cent. It also affects your handling and breaking. To save money, pressure regularly.
- Weigh up the air-con. Are you guilty of air-conditioning the world? It’s time to stop. Studies have shown that driving at speeds of less than 90kmh with two windows open is more fuel-efficient than when you’re using air-con, but for over 90kmh it’s more efficient to wind windows up and use air-con.
- Compare insurance providers. We all need insurance for our vehicle, but the costs associated with this can vary dramatically depending on your age, past history and vehicle type. Comparing will help secure the best value for you.
- Service your car regularly. Paying for a service every few months may seem excessive, but having your vehicle running in top condition will do more for your wallet than skipping services and only doing it once in a blue moon.
- Check your tyres are at the correct pressure. If your tyres are 25 per cent too low in pressure, it can increase your fuel consumption by two per cent. It also affects your handling and breaking. To save money, pressure regularly.
- Weigh up the air-con. Are you guilty of air-conditioning the world? It’s time to stop. Studies have shown that driving at speeds of less than 90kmh with two windows open is more fuel-efficient than when you’re using air-con, but for over 90kmh it’s more efficient to wind windows up and use air-con.
- Compare insurance providers. We all need insurance for our vehicle, but the costs associated with this can vary dramatically depending on your age, past history and vehicle type. Comparing will help secure the best value for you.
Buying another car
If you’re on the hunt for a new car, shop around to save money and don’t buy from the first dealership you enter. Compare prices and extras on the vehicle you want, and find out what the sales person is willing to throw in for free. Be nice to the salesperson and they’ll probably be more willing to help you. Once you narrow down your search and have a few cars on your shortlist, compare their features. Not all cars are created equal, even those within the same make and model. Pay close attention to the fuel economy of automatic and manual variations, the engine size, the number of cylinders etc. Slight variations can lead to bigger costs or savings down the track. If you want to know what a car is like to drive, and how it may handle as it ages, consider renting one. Hiring at the cheap end of the market will let you see how the horrors inflicted by dozens of uncaring drivers have affected the vehicle.
How young drivers can lower their car insurance costs?
- Drive safely, it may take some time but it will happen. The longer you have a clean driving record the lower your premiums will become.
- Buy a cheaper car. The cheaper the car the cheaper it is to insure, within reason. Old bombs are accident-prone so can also attract a high premium. Make sure it is a safe reliable car; have it checked over by a mechanic. But it stands to reason, as a brand new car is a much greater liability to insure than one that is a couple of years out of the showroom.
- Have all the safety gear fitted. Not only will it give you peace of mind but also it will lower your premiums due to decreased risk of theft. Check if your car or the car you are thinking of purchasing is fitted with any of the following: immobilizer, alarm, micro dotting, or a tracking device. Many modern cars are fitting with these safety devices, but if not, get a few quotes on how much it would cost to get them put in, as it could be money well spent.
- Keep it plain and simple. Modified and performance enhanced cars attract a higher premium due to the increased likelihood of theft or speeding. It might seem boring, but buying grandma’s second hand Corolla hatchback might make a lot of sense financially.
- If you do happen to make any modifications to your new ride, you will have to inform your insurance company. Failure to do so could seriously hinder your coverage in a bad way.
- Understand the different forms of insurance. Compulsory third party may seem like a great way to save money on insurance but it does not cover your car for damage or theft. Could you really afford to replace your stolen car? Or would you rather fork out a little extra for the piece of mind that comprehensive cover provides?
- Compare car insurance and shop around. There are so many insurance providers out there and premiums can vary greatly. Understand the market and work out exactly what level of cover you require. Once you understand this, you can find the best price and policy for you.
- It is also worth taking note of who is driving your vehicle, and if they are not covered in your policy and you have a bingle, then you are not covered – a sure fire way to test a friendship.
- Buy a cheaper car. The cheaper the car the cheaper it is to insure, within reason. Old bombs are accident-prone so can also attract a high premium. Make sure it is a safe reliable car; have it checked over by a mechanic. But it stands to reason, as a brand new car is a much greater liability to insure than one that is a couple of years out of the showroom.
- Have all the safety gear fitted. Not only will it give you peace of mind but also it will lower your premiums due to decreased risk of theft. Check if your car or the car you are thinking of purchasing is fitted with any of the following: immobilizer, alarm, micro dotting, or a tracking device. Many modern cars are fitting with these safety devices, but if not, get a few quotes on how much it would cost to get them put in, as it could be money well spent.
- Keep it plain and simple. Modified and performance enhanced cars attract a higher premium due to the increased likelihood of theft or speeding. It might seem boring, but buying grandma’s second hand Corolla hatchback might make a lot of sense financially.
- If you do happen to make any modifications to your new ride, you will have to inform your insurance company. Failure to do so could seriously hinder your coverage in a bad way.
- Understand the different forms of insurance. Compulsory third party may seem like a great way to save money on insurance but it does not cover your car for damage or theft. Could you really afford to replace your stolen car? Or would you rather fork out a little extra for the piece of mind that comprehensive cover provides?
- Compare car insurance and shop around. There are so many insurance providers out there and premiums can vary greatly. Understand the market and work out exactly what level of cover you require. Once you understand this, you can find the best price and policy for you.
- It is also worth taking note of who is driving your vehicle, and if they are not covered in your policy and you have a bingle, then you are not covered – a sure fire way to test a friendship.
Proactively looking for savings is better than putting your head in the sand and hoping things get cheaper on their own. Though savings from each of the above may not sound like a lot individually, when combined you’ll be amazed how much money you’re wasting. Lowering your vehicle insurance costs is achievable if you’re willing to put in the groundwork. Shop around, take time to make an informed decision, drive safely and enjoy your newfound freedom.
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