Over the years, the technology used to calculate car insurance premiums has changed dramatically. Actuaries used to figure out premium levels by hand using books of statistical data. Later, adding machines and early computers ground through the numbers. More recently, online forms were invented which allowed you to get a quote online.

After all that time grinding things out, what most insurers and consumers wanted was speed. As a result, the current model for most traditional or mainline insurance companies in Australia consists of just a few questions. With these tiny points of data, a quote is generated based on aggregated consumer averages.

The result is a fast quote, but not a very accurate one. Most people don't notice that they are being treated as averages. They simply pay the quoted amount and pay rate increases even if they are accident free. However, you don't have to settle for this outdated and inaccurate system any more.

While most insurers haven't gotten there yet, there are a few car insurance companies that have been pioneering a new way of calculating premiums. This new pricing methodology is based around creating highly detailed risk profiles of potential customers. This allows a calculation of premium that can truly separate high-risk from low risk customers.

There are several winning elements to this methodology. However, for consumers like you, the main benefit is often lower prices. If you are a good driver with a limited number of claims, you can really make home some substantial savings by switching to a company using this in-depth modeling framework to calculate rates for insurance cover.

It can feel a bit strange, especially after years of living with the old speed-is-everything system. That's not to imply that this method isn't fast, mind you. It simply asks several additional questions about parking locations, length of commute to work, and so on.

As one of the early adopters, you stand to benefit the most. While your friends potter along with outdated insurance policies with off-the-rack premiums, you can have a custom tailored premium that only charges for the real risk you face as a driver and customer. You'll be able to quit subsidizing the behaviours of others through blanket premiums, and get to enjoy the fruits of your own careful behaviour on the road.

This is especially true if you really aren't an "average" driver. If you only drive a few days a week, work from home and don't use your car regularly, or are retired and don't drive long distances, you have a dramatically different risk profile than most Australians. Yet you have been paying "average" rates for years, since the old method never inquired about your true habits.

Even if you're not a fan of the new and different, this is a new technology you'll want to embrace. The new technology behind this quoting system isn't all flash and sparkle. It truly represents a way to make insurance premiums cheaper for you through more accurate pricing of your insurance cover based on your real risk profile.