As a stay at home mother, the official title of “mum” is an endearment that includes a hefty job description. In these tight economic times, that job description has likely been expanded to include finding new ways to stretch the household budget. One way to find extra room in your budget is by re-examining your car insurance cover.
Most car insurance cover is issued on a standardized basis. Consumers have indicated they want fast, easy car insurance quotations. In their quest to give customers what they want, car insurance companies base their quotes on assumed driving and parking habits that don’t always reflect the true risk As a result, many Australians, and especially stay at home mums, may be paying too much for their car insurance cover.
To be perfectly frank, the driving habits of a corporate warrior are nothing like those of a mother. Office workers are driving in peak traffic hours every day, some long distances, and parking in less than perfectly secure inner-city car parks. Stay at home mums are driving in off peak hours, running short errands, and parking at home or in spacious suburban zones.
The contrast between the two risk profiles is obvious, so it’s a bit of a shame that insurance premiums are charged the same for both. All too often, due to the assumptions made by insurance companies eager to offer a quick quote, the offered rates are not reflective of the real risk levels. This pricing formula is an area of opportunity for stay at home mums looking to save money.
There is new insurance technology out that offers a more in-depth car insurance quotation process. It’s an automated process that includes a few more questions about you, your lifestyle and your driving habits. Thanks to the speed of the technology, you can still get a quote online in practically no time, even though you will be answering a few more questions about yourself.
The result will be a premium that accurately reflects the real risk profile of a stay at home mum. This is usually a noticeably lower car insurance premium than that being paid by a corporate warrior. After all, since most of the driving being done by a stay at home mum consists of short trips to playgroups, the supermarket, or the store, they shouldn’t be paying the same rates as someone commuting long distances to work each day.
The distance driven isn’t the only factor that will lower insurance costs. Mums tend to drive in suburban areas and planned community zones, avoiding risky highway and inner-city driving. The car also spends more of its time parked safely at home, which usually is an area with a reduced risk of hit-and-run accidents or break-ins that corporate types may face in their unmonitored car parks.
So, by looking for a way to provide additional detail about your driving and parking habits, you may lower your insurance premium through more tailor made risk-based premium pricing. It’s something a little different and a bit more inquisitive than the usual process, but the savings are real. This is a painless way to ensure you are only paying for how you use your car, which may give you more money to spend on other, more important items for your family.
