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Insurance, whether you love it, hate it we all need it. Insurance for our cars, our pets, our home and lives the list goes on. But you can end up paying more than is necessary. So lets talk about the main insurance which most of us pay for, car insurance. How can you save on car insurance?

If you have recently finished paying off the finance on your car, make sure you inform your insurer that you now own your car out right. Cars subject to finance attract a larger insurance premium than those owned out right. It’s easy to forget to inform your insurer of this little detail and before you know it, you have paid more for your car insurance than you should have.

Shop around – I know an obvious one, but you will be surprised just how many people allow their car insurance policy to roll over, without questioning the renewed premium. Consumer group Choice found motorists, can save up to $1500 a year on their comprehensive car insurance by simply shopping around.

Ask for a higher excess, this can be risky, however if you are an at home mum, and only get out now and then, chances are you are at less risk of an accident anyway. Why pay for a higher premium, when your car remains in the garage for a majority of the week. For example, if your car has an excess of $500 and you increase it to $1300 you could save up to 25% on your premium, potentially saving you hundreds of dollars each year.

Ask questions, what does your insurance policy actually cover? And then consider whether you need this service or not. Extras can cost, i.e. Provision for a replacement vehicle if your car ends up in an accident and in need of repair will increase your insurance premium. In the event this occurs, it could be cheaper to simply hire your own replacement vehicle? Mean while you can pocket the savings by eliminating the extras.

Some insurers are now offering “Pay As You Drive Car Insurance”, this is perfect for us mums who don’t get out as much as we use too. Pay as you drive insurance, as the name suggests means you only pay for the kilometres you use on your car, and generally only applies to comprehensive insurance. The potential savings on this method of payment will be of great benefit to mums who only use their car on the odd occasion.

Leave your tips and tricks for saving on car insurance. Then get on the phone and shop around for a better rate. For 30 minutes work your could save yourself hundreds.

Sonia Williams a mother of two, qualified accountant, author and founder of Show Mummy the Money www.showmummythemoney.com.au, designed to help mums, save, make and protect their money. This information is correct at time of writing. It is general advice only and has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information.