Annual car costs exceed $5,000 in 2021

People pulled over on the side of the road on the phone to car insurance company, checking the engine.

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 - rates updated daily

Search promoted car insurance below. Advertiser disclosure. Important information on terms, conditions and sub-limits.
  • Gold 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%
    Go to site
    Details
  • Comprehensive Car Insurance

    Monthly premiums
    Calendar icon
    Yes Costs Extra
    Choice of repairer
    tools icon
    Optional Extra
    Choice of excess
    coins icon
    $300 - $2,550
    Agreed or market value
    Car coin icon
    Agreed Or Market

    Available discounts

    • Online Discount $75
    Go to site
    Details
  • Comprehensive Car Insurance

    Monthly premiums
    Calendar icon
    Yes
    Choice of repairer
    tools icon
    No
    Choice of excess
    coins icon
    $500 - $5,000
    Agreed or market value
    Car coin icon
    Agreed Or Market

    Available discounts

    • Pay As You Drive Cover With Pricing Tiers Available For Limited Kms.
    Go to site
    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
    Go to site
    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
    Go to site
    Details

*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.

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.

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