If your premium goes up, it's probably because your insurer has had more claims from people in your age group, or in your suburb, or who drive the same type of car compared to the previous year - and because this experience is the best indicator of what's likely to happen in the future, it is used to set prices. For the same reason premiums for good drivers can also go down from one year to the next.

This is why it is important to reassess your insurance every year by getting quotes from a range of insurance providers.

If insurance companies measure similar risks then why are there differences in price between different insurance providers?

Just like any consumer good or service, insurance companies differ in what they offer and their customer service.  Many companies provide benefits to a particular demographic such as pensioners, woman, and safe drivers.  There are also now insurance companies that offer a unique service such as offsetting your car’s carbon credits or paying you for not making claim.

After you have filled in your information into QuoteMyWheels and got a list of quotes you can make further changes to your policy by clicking on the quote and following the appropriate steps.  By making further changes you may be able to reduce your premium further.

QuoteMyWheels recommends that you read the policy ‘fine print’ which is called a Product Disclosure Statement (PDS) before you commit to your car insurance.

Once you have your quotes, compare the premiums, but don't make your decision solely on price. A car insurance policy may cost less because it offers less cover or has more restrictions. It is important to weigh up all options and consider what you need when purchasing car insurance.  A great way to save is to not to include things in your policy that you don’t need.