Compare Car Insurance Australia: Save up to 15% online

From assessing policy features and levels of cover to ensuring premiums won’t blow out your budget when renewal time rolls around, there’s a lot to consider with car insurance.

Mozo’s car insurance policy table featured above provides an easy way to compare car insurance online. At a glance, you’ll be able to see important features like which discounts are on offer, whether you have the flexibility to choose your repairer, the excess levels, and if you can pick between agreed or market value when covering your wheels.

So you can investigate these options armed with the most up-to-date knowledge, we’ve summarised all the car insurance must-knows below.

How does car insurance work?

Depending on the level of car insurance you purchase, this type of insurance policy covers you financially if you cause damage to your own and other people’s vehicles and property. It also relates to costs associated with physical injuries.

When you take out a car insurance policy, you’ll pay an agreed-upon premium (generally annually or monthly). This will need to be renewed at the end of each policy period.

The amount you pay corresponds with specified circumstances, and will help determine what your insurance company will pay out if you make a car insurance claim. 

To make a claim, the accident or event needs to be within the agreed parameters of your policy. When you make a claim, contact your provider and they’ll lead the process from there. Remember: there are some things that are not covered by car insurance. Make sure you know what isn't covered by your policy before beginning a claim.

If your claim is successful, you’ll often be required to pay an excess before the agreed-upon costs are covered. Then, voilà! You’ve taken out a car insurance policy and made a car insurance claim.

What levels of car insurance cover are there?

Car insurance might seem confusing, especially if you’re a first time insurance customer. The first thing to understand is the three tiers of car insurance policies: CTP insurance, third party insurance, and comprehensive car insurance.

Compulsory third party (CTP)

Compulsory third party insurance (CTP) is also known as a greenslip and is required in Australia by law when you register your vehicle. 

It provides the driver legal liability cover for injuries or death for which they’re responsible. How you go about procuring your CTP insurance differs slightly based on the state or territory you live in, as does the cost of compulsory third party insurance. 

Third party property car insurance

Third party property car insurance is optional and covers damage to another person’s vehicle or property but not to your own car. Third party is generally cheaper than a comprehensive policy and may be right for you if your wheels aren’t worth much. 

Fire and theft car insurance is a popular additional option to this level of cover for people who park their cars in the street or live in an area with a high crime rate. It protects your car against damage caused by fire or theft, but not in the event of an on-the-road accident.

Comprehensive car insurance

These are the types of policies you’ll find compared by Mozo and are the highest level of car insurance. When a claim is accepted, comprehensive car insurance will cover you against accidental damage to other people’s property but also for damage to your own vehicle, even if the accident is your fault. 

Depending on the individual policy, comprehensive car insurance policies can also cover you for things like damage to personal property within your car, the use of a rental car and a host of other features.

While a comprehensive policy is usually the most expensive policy option, it can be made more affordable through a range of discounts, sign-on offers and clever car insurance comparison.

What will affect the cost of my car insurance?  

The cost of a comprehensive car insurance policy can change significantly depending on who is asking for the quote. Every car insurance company uses a different formulae to calculate premiums, so you never can tell exactly what determines the cost on an individual level. 

The 2021 Mozo Car Insurance Report helps provide a ballpark figure for the cost of car insurance costs with these factors in mind. Some of the common demographic and behavioural factors that can alter the cost of car insurance include:

Your age

Young drivers are considered higher insurance risks than their more mature counterparts as they’ve spent less time behind the wheel and are statistically more likely to be involved in road accidents (the same goes for older inexperienced drivers). So, drivers under 25 are usually charged a higher premium and excess.

Mozo’s 2021 report found a significant difference between premiums for young and senior drivers. Our data found those under 25 pay an average price of $1,449 for their insurance, while those aged between 55 to 64 pay $791 on average.

Your gender

Similarly, male drivers are considered more of a risk to insure than women, so women can often get cheaper car insurance. Again, this is because men are statistically more likely to be involved in incidents on the road which cause more extreme and costly damage to vehicles and property. 

In 2021, Mozo research found men pay an average of $83 more than women each year on comprehensive car insurance.

Where you live and where your car is kept

If you keep your car on your property away from potential harm, you’ll likely see a reduction in your car insurance costs. But your postcode can also impact your premium. 

You may be offered differently priced policies depending on the state or territory you live in, but the regions within those borders can also impact price. This is largely linked to levels of vehicle theft, road accidents and other statistics connected to the area. 

In 2021, drivers living in certain areas of New South Wales and Victoria – notably the metro parts of Sydney and Melbourne – as well as the Northern Territory have been paying higher average premiums than people in other states and territories.

The age, make and colour of your vehicle

It seems logical that newer, more expensive car models cost more to insure, as they are likely going to be more costly to replace or repair. But interestingly, Mozo’s 2021 report found your car’s colour can also impact your insurance premium.

Again, this may be related to statistics around the cars that are most likely to be stolen or involved in car accidents. Mozo identified blue cars as the cheapest on the colour spectrum to insure ($994), while black cars ($1,073) were the most expensive.

See how the reset of the colour wheel stacks up:

How often you drive

Some insurance companies offer cheaper premiums for Aussies who don’t use their cars very often. This is often known as pay-as-you-drive insurance or a drive less, pay less policy option.

It usually involves setting and sticking to a kilometre limit for your policy period and being rewarded with a discounted premium. Usually, if you go over this projected mileage you can top it up with extra kms, but this may impact the cost of your insurance.

How heavily some of these factors weigh in the insurance company’s calculations differs. With each provider putting a different price tag on your policy, it's super important to shop around and not just go with the first quote you get.

How else can I save on my car insurance?

There are a range of car insurance discounts that can help reduce your premium. Each provider and car insurance policy is different, but across the market you could see the following discounts being offered.

• Multi-policy discount

Some providers don’t just cover your vehicle needs but also operate in home insurance or life insurance. They can reward you with discounts depending on the amount of policies you take out with them.

• Online discount

Some policies will be slashed (often for the first year) if you take them out online rather than in person at a branch. This is because it's essentially a more efficient, cost-effective way for the provider to sign-on new customers.

• Restricted driver discount

If you can guarantee there won’t be many drivers or restrict the age of the drivers listed on your policy, you could also be up for a discount on your premium.

• Family discount

If your parents have a car insurance policy with the same provider, you may be able to nab a discount on your own policy which is handy if you’re a first time car insurance customer. You might even be able to get a no-claims discount if you have been listed on your parents' insurance policy and not made a claim. 

• Loyalty discount

If you’ve held the same policy for a number of years, some car insurance providers will offer you a discount when it comes to renewal time. If they don’t, you should ask for one!

• Fuel efficient discount

An increasingly popular discount in the car insurance market is to reward customers who choose an eco-friendly vehicle. If your car is fuel efficient or a green electric car, look out for policies that will slash your premium thanks to your environmentally-conscious ways.

You can find more options that may help re

What are some of the extras to compare and consider with comprehensive cover?

Car insurance policies are a little like snowflakes, no one policy is the same as the next. Some may come with features as standard, while others will require you to opt-in. Generally speaking, the more feature-rich your policy is the more expensive it will be. Some features to consider include:

• Windscreen cover: Windscreen cover is sometimes an additional extra you’re required to ask for when taking out your policy. This will cover any damage to your windscreen or any glass on your vehicle. Remember,  you might have to pay an excess to use this feature of your policy.
• Choice of repairer: Being able to choose your own repairer is available on some high-end comprehensive car insurance policies. This is a great option if you have a trusted mechanic or panel beater in mind and want them to see to all repairs.
• Hire car cover: If your vehicle is facing a stint on the sidelines, how will you get about? This is where hire car cover kicks in. Some providers won’t include it as standard at all, while others might only cover the costs of your rental if your car is stolen and not damaged or vice versa.
• Personal property cover: This kicks in if your car is raided or you’re in an accident and your fancy sunnies are damaged. Each policy will have a different cap, so keep that in mind if you often leave valuables in your car.
• Roadside assistance: Roadside assistance is the helping hand that comes to the rescue when you’re broken down. Most insurance companies won’t offer this as standard, but some do. If you like the added security of knowing your immediate mechanical solutions will be met, keep an eye out for this additional extra.

What’s the best car insurance?

The best car insurance policy is one that complements your personal needs and budget. The best way to uncover this policy is to do your research, consider your options thoroughly and compare car insurance quotes.

That’s where the Mozo Experts Choice Car Insurance Awards come in handy. Each year Mozo’s Expert Judges analyse thousands of comprehensive car insurance quotes to find some of Australia’s best quality and best value policies. See the winning providers below, then investigate policy details of the best car insurance in Australia.

Other key FAQs about car insurance