Where to get car insurance

There are basically three options for getting your insurance cover: through an underwriter directly or their agent, an insurance broker, or one of the growing number of branded insurance policies being sold under the auspices of the car manufacturers.

Dealing direct with an underwriter is generally the cheapest option but once again, cost shouldn't be the only consideration.

Most of the big underwriters such as NRMA, FAI, and GIO all have direct dial lines where you can organise cover and pay for it over the phone. But with the large number of players, shopping around for the right policy at the right price can be a laborious and time consuming task.

If you would rather a more personal approach, then an insurance agent might be a better choice. Agents generally sell insurance for just one or two underwriters, so your choice of policies will be limited.

In these days of longer working hours and less time for leisure, one of the last things you want to be doing is spending days on the phone comparing quotes and conditions or wondering whether you have got the right policy so that is where a broker comes in.

Brokers work for you and not the insurance underwriters so they are not tied to selling you a policy from any particular one company.

John McMurrick, a partner in Freeman McMurrick Insurance Brokers said going through a broker may in some instances cost you a little bit more but you were paying for a complete service.

"We might find that one company might do a good rate on Holdens and Falcons but they are not so good on other types of cars so that's when you have a look around to see who has got the best attitude, the best premium, the best policy wording and the best response when there is a claim," Mr McMurrick said.

"The type of client that we have doesn't want to have to shop around, they say you go to the different companies and you work out the best deal."

He said using a broker was particularly appropriate for prestige cars or exotic cars as the broker often had more leverage to get a better premium or solve any problems.

"When we develop the scheme we sit down with an underwriter and say this is what we are looking for, and we go through things by negotiation," he said.

Another option for insuring your car is through the growing number of manufacturer branded products. In the prestige arena, BMW and Volvo have been operating the longest and offer specific insurance packages tailored to the needs of their customers.

But other car makers are slowly getting into the insurance game as a means of making the car purchase easier and less stressful.

Holden's manager finance and support products, Jane Morison, said the availability of Holden branded insurance meant customers had a one-stop shop at the dealer.

"We are not in the business of flogging insurance but it is to provide our customers when they have decided what car they want with the products that may assist them into getting into that more easily whether it be a finance products or insurance products and tailoring them specifically to Holden drivers," Ms Morison said.

Finally, if your car is part of a salary package, you may be able to insure it through your employer. Many large companies are self insured or because of the value they insure for, have significant buying power with the underwriters and are able to offer very good rates.