

Your motor vehicle is hugely important in your day-to-day life. Without it, you might struggle to get to work or school, and simple tasks such as buying groceries can become much more time consuming. This is why lots of Papua New Guineans buy insurance – to protect their finances if their motor vehicle is stolen or damaged.
However, some people do not buy insurance because they worry it is too expensive. This is not true. In this article, we will show you some great ways to save money on your motor vehicle insurance, so that you too can benefit from its advantages.

Tip 1: Maintain a good driving record
When you talk to an insurer about buying motor vehicle insurance, they will want to know if you have been in accidents before, or if someone has stolen your car in the past. This is because the insurer needs understand how much of a risk they are taking by offering to help you pay for repairs or a replacement, should something happen to your car.
To an insurer, someone who has been in five car crashes is probably not as careful a driver as someone who has been in none. So, the insurer would likely ask the first person to pay more on their premiums than the second person because they (the insurer) would think there is more chance that they have to pay out.
Maintaining a good driving record is, therefore, a good way to help keep the costs of your premiums lower. However, if you have had car accidents in the past, this does not mean you cannot buy car insurance. It is just important that you are honest about your driving history when you talk to the insurance company – if you try and hide information, and the insurer finds out, your policy may become invalid.
Tip 2: Shop around
Especially if this is your first time buying motor vehicle insurance, you should not buy from the first company you come across without first checking what other options there are. Some businesses may offer special deals or discounts, and the only way to find out is to look!

Tip 3: Pay your premium in one go
Once you have done your research and found an insurer you trust, there are more choices you can make that might reduce the reduce the cost of your motor vehicle insurance.
Among the easiest is paying your premium in one go. Your premiums are the upfront payments you make to secure the policy, and most insurers will give you the option of either paying in installments (usually monthly) or as a lump sum that lasts for a year. Generally speaking, this second option will be less than the total of the monthly payments – another easy way to get cost effective motor vehicle insurance in PNG!
Tip 4: Look into multi-vehicle insurance
This is particularly useful for families that wish to insure more than one motor vehicle. Rather than each person searching for a separate policy, find the insurer you think offers the best value and ask them about a multi-vehicle plan.
Often, insurers will offer discounts to families who wish to insure more than one with car with them, and it does not matter if each car has a separate renewal date. However, you still need to do your research to ensure this really is the best option for you. For example, if one person in your group has a much worse driving history than everyone else, this could increase the premiums for the rest of the family.

Tip 5: Consider increasing your excess
Every motor vehicle insurance policy will include an excess. This is the amount that you still have to pay if something happens to your motor vehicle. For example, if you are in an accident that causes PGK 1,200 damage to your vehicle, and you have an excess of PGK 500, you will pay that amount, and the insurer will pay the remaining PGK 700.
If you are confident that you will not have an accident, and that your car will not be stolen, you can usually choose to increase the excess amount when you buy the policy. Of course, there is a risk involved with this, but the advantage is the cost of your premiums will go down.
With these tips in mind, you are in a great position to go out and find the best value motor vehicle insurance in PNG. For more advice, or to ask about policies that are tailored to your unique needs, get in touch with the team at Trans Pacific Assurance Ltd. today!