For most of us, cars are a way to get from A to B with no real consideration given to the upkeep of them, besides regular maintenance. However, Compare the Market is urging motorists to consider where they park their cars for the night, as it may affect their comprehensive car insurance premium.
Analysing a number of comprehensive car insurance policies, where the only variable was where the car was parked at night, the car insurance comparison website found that, in one instance, there was a saving of 5.71% off the quoted policy premium by parking the car in a garage, as opposed to parking on the street.*
This one example also found that there was a 3% increase in premium when the car was switched from parking in a garage to parking on the driveway.
Based on these findings, in this scenario, the driver would be able to save $73 a year on the annual premium by parking in their garage rather than on the street.
| Parking option | % change compared to parking in the garage | $ change compared to parking in the garage |
| Driveway | +3.00% | +$36.75 |
| Street | +5.71% | +$73.23 |
Commenting on the research, Compare the Market’s Executive General Manager for General Insurance and car insurance expert, Adrian Taylor, said that where the car is parked at night is a key consideration in how insurers calculate the policy’s risk score.
Considering that previous research from Compare the Market found that one in ten drivers had their car broken into, parking in a locked garage can mitigate break-in threats.
“Generally, insurers will see garaged vehicles in a lower-risk bracket as opposed to those who park in the driveway or street, as there is a lower chance of theft or damage occurring in a locked space,” Mr Taylor said.
“As a result, our research shows that a person could see a reduction in their premiums. In this instance, this was an average of 5.71% if they were previously parked on the street, or a reduction of around 3% if they were only parked in their driveway. Of course, the exact savings will vary depending on the individual’s circumstances.
“Given that our previous research has shown that about one in ten drivers had their car broken into in the past year or so, it’s a compelling case to ensure that your car’s secure during the night. Not to mention less of a risk of it being hit or damaged by a third party.
“So if people do have the choice of parking their cars in a garage or on the driveway or street, I strongly suggest the former.”
Mr Taylor also spoke about the added benefits of keeping the cars locked up at night.
“Not only can locking up your vehicle at night mean lower insurance premiums, but parking in a garage and away from the elements could keep your car in better condition than if you park out in the open,” Mr Taylor said.
“Our summers are hot, and leaving your car standing in the hot morning or evening sun, could mean that your battery life is considerably shortened as your battery fluid evaporates. Your tyres might also wear faster with constant exposure to UV, while general wear and tear might happen quicker to both the internal upholstery and external paint job of the car.
“And as we head into winter, especially in the southern states, cold weather and frost can also make your car battery sluggish, while fuel systems which may be contaminated with water can starve the engine of fuel, if these water particles freeze, rendering your car useless.
“In this current cost of living crisis, every little bit helps the hip pocket. Those extra dollars could be put towards extra groceries or energy bills. However, parking in a garage is not the only way to save on car insurance.
“I would urge people to never auto-renew an insurance policy when it lands in your inbox or post box, and people should shop around and compare the options out there. In the end they may find a better suited policy for their current circumstances.”
*Disclaimer
Quotes done on Compare the Market’s car quote journey based on a 2019 Toyota Corolla ZR Hybrid Auto owned by a 30-year-old female residing in Spring Hill, 4000, Queensland, who owns a home and has had comprehensive car insurance in the past 12 months. The driver has a rating of 1 NCD, with all policies including a 30+ years age restriction on drivers. The car drives up to 15,000km in a year, with finance, but with no damage, no modification and no dealer options. The policy has a $900 excess. Prices are accurate as of 18th April 2024 and are subject to change.
-ENDS-
For interviews and more information, please contact:
Noémi Hadnagy | m: 0433 377 252 | e: [email protected]
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