It is a somewhat typical situation for Australian road users to automatically renew their existing auto insurance policy the moment a reminder arrives through the post. In many instances, policyholders rarely examine the auto insurance rates that are being applied for the following year. They naturally assume that they will have received discounts by maintaining a further year of accident-free vehicle use.

Somewhat surprisingly, this is not necessarily the case. Indeed, there are many Australians who continue to drive their vehicles responsibly yet suffer the burden of increased auto insurance rates because of the actions of other drivers. Auto insurance companies tend to increase their rates as a means of recouping their losses from previous years. These losses tend to be spread out throughout the entire customer base rather than through drivers with a series of accident-related claims.

It is essential that all auto insurance quotes, especially renewals, are carefully reviewed. If your auto insurance rates have increased, even though you have had no accidents in the previous 12 month period, it may be advisable to look for new auto insurance quotes elsewhere. This can be done through the use of a price comparison website so that a multiple number of policy offers can be applied for simultaneously and compared to the deal that is currently being offered by your existing carrier. Indeed, there are many motorists in Australia who automatically apply for online auto insurance quotes a regular basis anyway. Many different companies implement promotions and discounts over the course of the year and apply these money-saving offers on every website where their products are sold.

Australia boasts more than 70 different auto insurance companies that can take care of most coverage requirements. Making the correct choice from such a large quantity of carriers can be a time-consuming and confusing affair. Promiga takes a look at the qualities your chosen auto insurance company should be providing:

Coverage Levels

Australia uses a three-tiered auto insurance system. The highest level of coverage is comprehensive auto insurance and this provides blanket protection, including third-party liabilities and the cost of repairs to the vehicle of the policyholder in the event of a road traffic accident. Third party and third party (fire and theft) coverage are also available. A reputable auto insurance company should be able to offer you all of these different policy types without any difficulty.

Cost

Road users should obtain as many auto insurance quotes as possible from a wide range of different carriers. Although coverage terms and conditions will essentially be the same on any equivalent auto insurance policy, costs can vary greatly. Effective price comparison techniques should help motorists to pick out the best financial deal amongst all of the offers available.

Discounts

If you are purchasing online, you should find that an annual policy is approximately 10% cheaper than an equivalent from a land-based outlet or a telephone call center. On price comparison websites, savings can actually extend to 15% because of the competitive nature of the open marketplace. If you are unsure whether a discount has been applied or not, talk to your preferred carrier in person to confirm the full policy details.

Auto insurance is a legal requirement in Australia and the United States of America. However, auto insurance legislation works different in each respective country. It can be particularly useful to know these differences if you are working overseas or planning to relocate.

State Laws

In America, auto insurance legislation varies from state to state. Some areas operate using the Tort system while others implement no-fault insurance laws. This makes the legal requirement for each individual state different. Demographics, vehicle usage and previous accident rates will all affect the legislation that is used.

In Australia, the same auto insurance laws apply throughout the country. However, premiums can fluctuate for the same reasons legislation might change in the United States. These are important difference that should always be kept in mind.

Coverage Differences

In the United States, the State Department of Motor Vehicles will require different levels of coverage that may include liability insurance, personal coverage, uninsured/underinsured motorist insurance and personal injury protection. However, not all of these policy additions will be required in every state.

In Australia, road users will have a choice of three different types of policy and they will be considered to be road legal as long as the minimum requirement of a third party policy has been obtained. Fully comprehensive polices and third party (fire and theft) auto insurance policies are also available.

Purchasing Insurance

Irrespective of whether you live in America or Australia, the best place to purchase auto insurance is through a price comparison website. The best deals can always be assured and multiple policy offers can be compared on a side-by-side basis in order to save money and improve your coverage credentials.