A third of drivers are losing money on car insurance by being loyal

While 1 in 4 Australian drivers think their car insurance is too expensive, a third aren’t looking for better value policies, according to Mozo’s 2020 Car Insurance Report.

Data from the report shows this is having a significant impact on motorists’ budgets. Around 32% of survey respondents cited car insurance as a major financial strain, and another 8% said they could no longer afford their policy.

So, why aren’t Aussies shopping around for the cheapest comprehensive car insurance quote? 

The report highlights friend and family recommendations as a key choice-driver, swaying the views of a third of respondents. Recognising an insurance brand and staying loyal to the same provider was another major factor, influencing a quarter of drivers.

Mozo’s data team calculated that drivers could be overpaying on their annual premium by approximately $902 by not comparing comprehensive quotes and finding the best value offer.

Can you compare third party car insurance?

If third party car insurance is the most suitable option for you and your wheels right now, you should still be looking out for the best value cover.

While this is a lower-level policy which only insures you for damage you might cause to other vehicles or property, different providers can and certainly will put their own price tag on it. 

The cost of your premium will be determined by each insurer based on a range of factors like your age, gender, driving experience, insurance history and where you park your car. Each provider has the freedom to charge what they see fit considering all of this.

As always, the most frugal path to follow starts with researching and comparing car insurance options. If you are keen to cover your own ride as well as others’, start with the comprehensive policies below.