Annual car costs exceed $5,000 in 2021

Australian drivers are spending upwards of $5,100 a year on car-related costs, according to a joint study by car subscription service Carbar and market research company YouGov.

Those participants in the study repaying car loans saw closer to a $9,000 annual car bill, while 41% of all respondents felt like they didn’t have a handle on their car expenses.

Car insurance is a significant slice of this expense pie. Mozo’s 2020 car insurance report found comprehensive car insurance alone is costing Aussies more than $950 a year on average – and prices are on the rise.

While petrol prices and car rego costs may be out of your control, there are a few ways to score a more affordable car insurance quote.

How to cut car insurance costs

  • Pay-as-you-drive: After a year of lockdowns, more providers are jumping on the pay-as-you-drive car insurance bandwagon. This usually involves setting a kilometre limit that you drive under within a policy period and receiving a discounted premium for spending less time on the road (thus posing less of an insurance risk) than the average driver.
  • Seek out discounts: From online application discounts to loyalty rewards and safe-driver bonuses, there’s a huge list of potential discounts that could shave down your insurance bill. Some providers will apply these automatically when you meet the conditions, but with others you may need to make an enquiry to start receiving the new rate.
  • Move to third party: A comprehensive car insurance policy will cover your own wheels as well as repair bills in case you damage other cars or property while driving. But if a comprehensive premium doesn't fit your budget or your car’s value, then third party property damage car insurance is a cheaper option to consider. Just remember: this only covers damage you might cause to other vehicles and property (up to a certain amount), not your own car.
  • Compare and haggle: If you’re still not satisfied with your premium, take a look at competitor insurance providers and negotiate a better deal. If your current insurance company isn’t willing to budge, consider switching to a provider offering cheaper car insurance that meets your needs as a driver. You can start your research today using Mozo’s car insurance comparison table.

Compare comprehensive car insurance policies - last updated February 27, 2021

Search promoted car insurance below. Advertiser disclosure.
  • Comprehensive Car Insurance

    Monthly premiums
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    Yes Costs Extra
    Choice of repairer
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    Optional Extra
    Choice of excess
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    $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
    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
  • 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
    Choice of repairer
    tools icon
    No
    Choice of excess
    coins icon
    $800 Flat Excess Fee
    Agreed or market value
    Car coin icon
    Agreed

    Available discounts

      Compare
      Details
    • Comprehensive Car Insurance Policy

      Monthly premiums
      Calendar icon
      Yes Costs Extra
      Choice of repairer
      tools icon
      No
      Choice of excess
      coins icon
      $650 - $795 As A Fixed Excess; Varying Between States
      Agreed or market value
      Car coin icon
      Market

      Available discounts

        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).

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      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.

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