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

By Olivia Gee ·
Woman calling her car insurer after an accident

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.

Car insurance loyalty costs

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.

Comprehensive car insurance options - page last updated October 17, 2020

Search promoted car insurance below. Advertiser disclosure.

  • Comprehensive Car Insurance

    Monthly premiums
    Calendar icon
    Yes Costs Extra
    Choice of repairer
    tools icon
    Optional Extra
    Choice of excess
    coins icon
    $500 - $1,850
    Agreed or market value
    Car coin icon
    Agreed Or Market

    Available discounts

    • Online Discount Up To 15%
      Compare
    Details
  • Comprehensive Car Insurance

    Monthly premiums
    Calendar icon
    Yes Costs Extra
    Choice of repairer
    tools icon
    No
    Choice of excess
    coins icon
    $800 - $2,000
    Agreed or market value
    Car coin icon
    Agreed

    Available discounts

    • No Claim Discount
      Compare
    Details
  • Comprehensive Car Insurance

    Monthly premiums
    Calendar icon
    Yes Costs Extra
    Choice of repairer
    tools icon
    Optional Extra
    Choice of excess
    coins icon
    $400 - $1,850 (varies By State)
    Agreed or market value
    Car coin icon
    Agreed Or Market

    Available discounts

    • No Claim Discount
      Compare
    Details

*Any information provided on this page should be considered a summary and general advice only. All information should be verified before purchase via the relevant Product Disclosure Statement (PDS).

^See information about the Mozo Experts Choice Car Insurance Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

Olivia Gee
Olivia Gee
Money writer

As one of Mozo’s money writers, Olivia Gee shares her research and insights across banking, insurance and property to help readers save. She loves getting stuck into a story, unveiling all the facts, breaking down stats and drawing on personal experiences - this is what drives her as a journalist. She has a double degree from the University of Wollongong, with a BA in Journalism as well as Media and Communications.