1 in 5 drivers might cancel car insurance during COVID-19

Many Australians are struggling to afford their car insurance right now, according to Mozo’s 2020 car insurance report.
Survey data informing the report shows 32% of motorists consider their car insurance a financial strain, with one in five drivers thinking about cancelling their policy.
Another 25% of respondents said they had already cut their cover.
If you drive less, should you pay less?
Many car insurance customers would argue on the affirmative of this statement since travel and social restrictions introduced to curb the spread of COVID-19 have kept cars confined to garages.
Some insurers have responded with premium discounts for set periods, often not even requiring customers to prove they’re driving less often or facing financial hardship as a result of the pandemic.
Existing pay-as-you-drive car insurance policies reward customers who drive fewer kilometers over the course of their policy period with a lower premium. If it’s measured monthly, this can often be adjusted to suit a spike in travel (like if you take a roadtrip), and you can usually top up your kms (for a premium bump) if it looks like you’ll surpass the policy limit.
How to haggle on your car insurance in 2020
If you are using your car less or simply want a better deal on your car insurance, then put on your haggling hat. If your negotiating skills are a little rusty, follow these steps to haggling success:
1. Do thorough research. You can start by scouring Mozo’s car insurance comparison page for a deal you can ask your insurer to match or beat. Then investigate other discounts you could potentially access.
2. Acknowledge COVID-19. It’s been a helluva year and your insurance provider knows it. If you’ve reduced your kms for whatever reason or are struggling financially right now, let your insurer know. You may be able to get additional concessions on top of a temporary COVID-19 discount.
3. Don’t accept the first offer. Insurance customer service providers will often present a discount offer as soon as you ask – don’t necessarily accept this. It’s likely they can do better, so push a little harder to see how far they’ll go.
4. Be prepared to bluff. Even if you’re only vaguely considering alternatives, putting forward the prospect of an insurance break-up could help you get a better deal across the line. Tell your provider you’re willing to walk away so they know you’re serious (have quotes from other providers ready to go just in case).
5. Chat virtually if phones freak you out. In this socially distanced existence, you’ll likely be haggling over the phone or online. If you're more comfortable with an edited manuscript than an impromptu speech, click on the chat bubble or email address instead of the call button.
Ready to start researching comprehensive car insurance policies? Get cracking with the options below.
Compare comprehensive car insurance - rates updated daily
Gold Comprehensive Car Insurance
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- Optional Extra
- Choice of excess
- $500 - $1,850
- Agreed or market value
- Agreed Or Market
Available discounts
- Online Discount Up To 15%
Gold Comprehensive Car Insurance
Get award winning Car Insurance. Save 15% ^ on your first year’s premium when you purchase a new policy online. Budget Direct offers tailor-made cover, new-for-old replacement, 24/7 claims, a highly-rated claims service, and get a hire car following a theft.
- New car if written off
- Yes - within 2 years or 40,000 kilometres of original registration, whichever comes first
- Rental car after theft
- Yes - Up to 14 days, max $1,000 total.
- Rental car after accident
- Not at fault - Yes. At fault - Optional Extra. Up to 14 days for at fault accidents.
- Windscreen cover
- Yes - standard excess. Option to reduce windscreen excess to $40 on every windscreen claim for an additional premium.
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- $600 for drivers under 21, $500 for drivers under 24, $600 for unlisted drivers, $500 for inexperienced drivers over 24.
- Roadside assistance
- Optional Extra
- Other benefits
- -
- Other restrictions
- -
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Budget Direct Gold Comprehensive Car Insurance
Comprehensive Car Insurance
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- No
- Choice of excess
- $800 - $2,000
- Agreed or market value
- Agreed
Available discounts
- No Claim Discount
Comprehensive Car Insurance
Stella have created a more intuitive experience and offer a product that’s been designed with women in mind; offering premium benefits, and optional extras and rewards for being a safe driver. Stella are back by QBE. Get a quick quote online in 40 seconds and insured in 4 minutes. Purchase a new comprehensive car insurance policy from Stella by 30th June 2022 and receive a $100 EGift Card*. T&Cs apply.
- New car if written off
- Yes - within 3 years and 60,000 km of original registration
- Rental car after theft
- Yes - Up to 14 days.
- Rental car after accident
- Not at fault - yes. At fault - Optional Extra. Up to 14 days.
- Windscreen cover
- Yes - standard excess. Option to reduce windscreen excess to $0 on every windscreen claim for an additional premium.
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- $600 for listed drivers under 25. $1,600 for unlisted drivers under 25
- Roadside assistance
- Optional Extra
- Other benefits
- Receive a $100 eGift card for new Comprehensive Car Insurance policies purchased from Stella by 30th June 2022.
- Other restrictions
- -
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Stella Comprehensive Car Insurance
Comprehensive Car Insurance
- Monthly premiums
- Yes
- Choice of repairer
- No
- Choice of excess
- $500 - $5,000
- Agreed or market value
- Agreed Or Market
Available discounts
- Pay As You Drive Cover With Pricing Tiers Available For Limited Kms.
Comprehensive Car Insurance
Huddle Car Insurance, Pay as you drive & save up to 30% (T&Cs apply). 24/7 claims lodgement and new-for-old replacement (under 2 years).
- New car if written off
- Yes - within 2 years of original registration
- Rental car after theft
- Yes - Up to 14 days, max $70 per day.
- Rental car after accident
- Not at fault - Optional Extra. At fault - Optional Extra. Up to 10 days, max $70 per day.
- Windscreen cover
- Yes - standard excess. Option to reduce excess for first windscreen claim each year to $0 for an additional premium.
- Modifications
- Most modifications covered automatically
- Young driver excess imposed
- $1,200 for listed drivers under 21, $800 for listed drivers under 24, $2,000 for unlisted drivers under 21, $1,600 for unlisted drivers under 24, $800 for inexperienced drivers over 24, $800 for learner drivers.
- Roadside assistance
- Optional Service
- Other benefits
- -
- Other restrictions
- -
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Huddle Comprehensive Car Insurance
Comprehensive Car Insurance
- Monthly premiums
- Yes
- Choice of repairer
- No
- Choice of excess
- $500 - $5,000
- Agreed or market value
Available discounts
- Pay As You Drive Cover With Pricing Tiers Available For Limited Kms.
Comprehensive Car Insurance
Enjoy flexible car insurance with ahm. Whether you’re driving thousands of kms, or just a few, ahm has cover that could suit your needs. Set up a policy in just minutes. Enjoy adjustable excess options to suit different budgets. Get 24/7 emergency help when you need it. Sign up by 30 June 2022 and receive free roadside assistance* for 12 months. T&Cs apply.
- New car if written off
- Yes - within 2 years of original registration
- Rental car after theft
- Yes - Up to 14 days, max $70 per day.
- Rental car after accident
- Optional Extra
- Windscreen cover
- Yes - standard excess. Optional extra for excess-free windscreen cover.
- Modifications
- -
- Young driver excess imposed
- $1,200 for listed drivers under 21, $800 for listed drivers under 24, $2,000 for unlisted drivers under 21, $1,600 for unlisted drivers under 24, $800 for inexperienced drivers over 24, $800 for learner drivers.
- Roadside assistance
- Optional Service
- Other benefits
- Get free roadside assistance for 12 months when you sign up by 30 June. T&Cs apply.
- Other restrictions
- -
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about ahm Comprehensive Car Insurance
* Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
^See information about the Mozo Experts Choice Car Insurance Awards