Crashing in a Corolla 'could save you money'

While many motorists know that driving a bigger car usually means higher insurance premiums, drivers of smaller cars may be in for a shock when they next have an accident.

New research by the National Roads and Motorists Association (NRMA) has found that the poor bumpers on a range of small cars often cause high crash repair bills, hiking up insurance premiums.

In fact, the repair costs on a Honda Civic which crashed at 10 km/h are often seven times that for a crash at the same speed in a Toyota Corolla. The Suzuki Swift cost five times the Corolla price - or approximately a third of its value. Such costs may have an effect on car insurance premiums.

NRMA Insurance head of research Robert McDonald told Australian Associated Press: "We are certainly urging consumers to consider repair costs when looking for a new car, as repair costs can have a significant impact on the insurance premium they'll pay."

Motorists in Australia must, by law, at least have third party personal car insurance. It is, in the majority of cases, included as party of the car registration process. State law governs which provider and what other clauses are required. For example, only New South Wales and Queensland offer consumers a choice of insurer for their third party personal cover.

Car insurance companies will pay out for any unplanned work that the vehicle needs. Premiums will vary, depending on the model and age of the car, along with where it is kept at night.

However, while the old rules of the bigger the car the higher insurance still exist, motorists should check the NRMA research before entering into any agreement.

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