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.
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Compare comprehensive car insurance - last updated 8 February 2025
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Comprehensive Car Insurance
Yes costs extra
Agreed or Market
$400 - $2,500
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- Monthly premiums available
- Yes costs extra
- Agreed or market value
- Agreed or Market
- Choice of excess
- $400 - $2,500
- Choice of repairer
- Optional Extra
- Discounts available
- -
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Read reviews and learn more about Youi car insurance
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Comprehensive Car Insurance
Yes costs extra
Agreed or Market
$500 - $2,300
Optional Extra
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- Monthly premiums available
- Yes costs extra
- Agreed or market value
- Agreed or Market
- Choice of excess
- $500 - $2,300
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- Discounts available
- Online discount $75 off new policies
- Quote time
- 6 to 8 minutes
Read reviews and learn more about QBE car insurance
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Mozo experts choice awards won:
- Exceptional Value Car Insurance - 2024
- Exceptional Value Young Driver Insurance - 2024
- Exceptional Value Senior Driver Insurance - 2024
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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.
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Read reviews and learn more about Budget Direct car insurance
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Mozo experts choice awards won:
- Exceptional Value Car Insurance - 2024
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Comprehensive Car Insurance
Yes
Agreed
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No additional excess for young drivers, lodge a claim 24/7 and zero cancellation fees. Hire car is included up to $80 per day for up to 21 days; cover for one tow to our nearest authorised repairer, following a covered incident. No excess on your first covered windscreen, sunroof, and window glass damage once per insurance period. List multiple cars and drivers under the one policy as long as they fit the underwriting criteria (excludes Safe ’n Save policies).
CompareCompareComprehensive Car Insurance
No additional excess for young drivers, lodge a claim 24/7 and zero cancellation fees. Hire car is included up to $80 per day for up to 21 days; cover for one tow to our nearest authorised repairer, following a covered incident. No excess on your first covered windscreen, sunroof, and window glass damage once per insurance period. List multiple cars and drivers under the one policy as long as they fit the underwriting criteria (excludes Safe ’n Save policies).
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- Get 10% off the base premium for the first 2 consecutive monthly policies and up to a 15% potential monthly discount from your 3rd month for being a safer driver. Minimum premiums may apply. T&Cs apply.
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* 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