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De-mystify the cost of car insurance and you could save money

Ever been at a BBQ enjoying yourself only to find the conversation heading a little south? So far south you start discussing car insurance? If so, then you either need to get new friends or read on, so you can be in-the-know when it comes to the cost of car insurance.

It is not unusual for people to shop around and compare insurance policies against each other to ensure they know what they are getting. However, when it comes to how an insurer reaches a quoting price many of us are none the wiser of what that price takes into account.

Car insurance pricing of course varies between insurers and the quote you are offered will come down to two main factors – your risk indicators and the level of cover you are purchasing. Customers who purchase their car insurance through Heritage Bank will find fair and competitive pricing based on these two main factors.

So, what risk indicators are taken into account when I am given a car insurance quote?

  • Where your car is garaged
  • the age of all drivers on the policy
  • the type of car you are insuring, its value and type of security device installed
  • your driving history, including recent insurance claims, license suspensions or driving offences
  • whether you use your car for work
  • the amount of excess stipulated on the policy.

Does this mean I can take active steps to save money on my car insurance?

Yes! There are a number of ways car owners can save money on their car insurance by improving their risk indicators prior to applying for a quote. We’ve included some top tips to saving money on your car insurance provided by Canstar Research:

  • You can reduce your car insurance premium by choosing the Restricted Driver option if you do not have any under 30 drivers driving your vehicle.
  • Refrain from adding accessories to your car. Modifying your vehicle to improve performance, increase power or change the handling can make the vehicle become an unacceptable risk.
  • Drive a six cylinder instead of an eight cylinder vehicle. It may not have quite as much power, but it will cost you less to insure.
  • Fit an alarm, immobiliser or both. All improvements to security should help to lower your car insurance costs.
  • Move to a country area. OK, this one may not seem practical, but regional areas generally tend to have cheaper car insurance premiums as the traffic density is lower.

While not all of these tips suit all drivers there is one thing we can all do and that is to drive sensibly. Not only will it put yourself, your family and others at less risk of an accident, you also may find your insurance premiums increase if you’ve lodged an at fault claim.

Heritage Bank offers its customers great value when it comes to car insurance. With a safe driver discount, tailored excess options and the provision of a hire car after theft, Heritage car insurance is designed to give you more, for less.

* Based on a $150,000 loan over 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

The information provided is intended as general information only. Blogs have been prepared without taking into account your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness having regard to your objectives, financial situation or needs. You should consider obtaining personal investment, taxation and/or legal advice before making any decision.  Please consider the Guide to Heritage Deposit Products and Guide to Heritage Credit Card Products (available in-branch, or at before you decide whether a product is right for you. All loans and credit cards are subject to application and approval. Conditions, criteria and fees apply and are subject to change without notice.