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

Mozo

26 Oct 2020

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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. 

Why do premium prices vary so much from insurer to insurer?

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. The Mozo Experts recently assessed 66 different policies available to Australian car owners to uncover the best value policies on the market.

Take a look at two of 2020's top Mozo Experts Choice Car Insurance Winners below and click through for an online quote to see how much you could be saving.

Best Value Insurer of the Year - Mozo Experts Choice Awards 2020

Budget Direct Comprehensive Car Insurance*
Budget Direct
  • 15% buy online discount

  • Your choice of repairer

For the second year in a row, Budget Direct has taken out top honours as Insurer of the Year, this time in the value category. The consistently affordable insurer provides flexible comprehensive car insurance, with up to $500 of personal property covered, another $1,000 to replace car keys and locks, and the option to choose your own repairer after an insurable event. 

If you get into a scrape and your wheels are written off, Budget Direct will replace your car with a new comparable ride (as long as it was less than two years old and had driven under 40,000km). And don’t forget the feelgood bonus of a 15% discount if you buy the policy online.

Exceptional Value Car Insurance - Mozo Experts Choice Awards 2020

Woolworths Comprehensive Car Insurance*
Woolworths
  • Pay Less, Drive Less policy option

  • New-for-old car replacement

You’ll find all kinds of cost-effective inclusions in this comprehensive policy, and can feel secure knowing you're covered in the case of emergencies. Woolworths offers $500 in emergency repairs without assessment, reasonable towing costs after a breakdown, and up to $500 for accommodation or travel if you’re stuck 200km or more from home. You’ll also get new-for-old replacement if your car is under two years old and deemed a write-off. 

Simply by applying online, you can score up to 15% off your first year’s premium, plus you can opt for the pay-as-you-drive cover. This means those who don’t drive often can elect a low kilometre limit and be rewarded with a premium reduction.

* 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 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

^ Find out more about the Mozo Experts Choice Car Insurance Awards for 2020.