Recent surveys conducted in 2004 across Australia indicated that doing your homework when it comes to choosing an insurance company can actually save you hundreds of dollars, even thousands if you are a family of drivers. However, one must consider the hazards and pitfalls associated with less expensive car insurance policies. In order to make an informed decision there are several factors that one must figure into the equation.

First, you must decide which type of insurance you will need. Many drivers elect to carry only third party compulsory insurance coverage, which is that insurance that is paid with vehicle registration. However, there are basically three types of insurance that is optional for Australian drivers, the least expensive being third-party property, which covers you for damage you may cause to another car and limited coverage on your own vehicle when in an accident with an uninsured driver. Third-party property, fire and theft is the second most expensive coverage and basically includes everything the later did, however, it also includes coverage of fire or theft of your vehicle. The most expensive type of insurance is comprehensive; it's the best option as far as coverage. Furthermore, you may choose between an agreed price or a market value price when buying comprehensive, as well. If you elect to buy a policy with an agreed price; you will most likely pay higher premiums; however, that agreed price is set in stone until your renewal.

Some plans promise consumers comprehensive policies at cheap and inexpensive prices, however, you need to always read the fine print. You may find out what you are buying is not insurance, but lies. In order to find the best and least expensive plan, a buyer has to be on their toes and be aware of scams. Furthermore, there are several tips and secrets that may help lower your current policy.

One must always be careful when dealing with insurance companies that sell policies over the phone or on the Internet. Although, many people feel it is easier and save time, when in an accident, you may find it's harder and more time consuming. Often times, dealing with a familiar agent and company is best and easier for all involved. Telephone and Internet insurance companies do offer cheaper policies, usually based upon their wide range of customers. So if saving money is the name of the game, then here are a few suggestions on making your policy worthwhile. First, tell them the facts, never leave out any information, otherwise if you are involved in an accident they have the right to withdraw from the claim and leave you standing alone and uninsured. Always give the insurer relevant information, for example, if you have modified the vehicle at all from it's original form or if your vehicle has ever been involved in any type of wreck, even fender-benders, never leave out any of the finer details, often times, this is the catch that can hang you out to dry. Another important point when working with an insurance company over the phone be sure to write down the conversation high points. For example, write down the name of the person you spoke with, the time and date of the phone call, as well as details regarding the discussion; what was said and any promises that were made.

Many times, people are so happy about the low cost of their policy, they fail to read the small print. This can also cause you various problems in the future, especially if you ever file a claim. Many buyers know what they are covered for; however, they never bother reading the fine print that lists the exclusions. Just as important as what you are covered for is what you are not covered for. Policies may sound the same to you, but often time's one policy may offer you a free rental car if involved in an accident, while another may not. Other exclusions that you may want to look for are those that do not cover certain repairs, whether or not replacement parts have to be new or reconditioned the option of retaining the wrecked vehicle or parting with it after your claim has been filed. You may want to check and see if certain weather conditions are covered, as well, for example, wind or storm damage.

One of the best ways to save money on insurance policies is knowing the great discounts that are out there for the taking. For example, most insurance companies give drivers discounts based upon no claims. If you have driven your vehicle one year without submitting a claim, most insurance companies will reduce the premium by at least 30 percent. If you're current provider has not yet done this, you may need to contact them or break out your contract agreement. Some companies will offer even larger discounts based upon several years of no claims. However, you might want to be aware that if you switch types of insurance, for example, going from a third party property damage policy to a comprehensive plan, your good driving record may mean something or nothing. Again, ask the insurer or read the small print.

Another question that arises when buying or renewing insurance policies; where do I go to get the policy I need? There are several options that people have; first, you could visit an underwriter. Dealing with an underwriter is usually the cheapest of the options. Of course as mentioned above you can use the telephone or Internet; however, most towns have agents that work or sell insurance for one or two different underwriters. Although, your choices will be limited, you will most likely find they are more honest and straight forward about policy limits. Brokers are another option, although sometimes expensive. Brokers work for you, not the insurance companies; they basically do the work for you. You are paying for a service which saves you time and perhaps money in the long run. Most people that use a broker are those with very expensive cars, though. A third option is car manufacturers, although just entering the insurance arena; this allows buyers a one-stop option. Now, when purchasing a vehicle, you can also insure the vehicle at the dealership. Currently, both BMW and Volvo offer this option to their clients.

In order to purchase the best insurance available for your personal needs, you must first weigh your options, and then read the small print. Most experts recommend receiving at least three quotes from various car insurance companies prior to deciding upon one. If your policy is due a renewal or if you are new to the car insurance market, keep in mind cheaper is not always better.