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

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Last updated 19 July 2024Advertiser disclosure
Important information on terms, conditions and sub-limits.
  • Comprehensive Car Insurance

    Monthly premiums
    Calendar icon
    Yes Costs Extra
    Choice of repairer
    tools icon
    Optional Extra
    Choice of excess
    coins icon
    $400 - $2,500
    Agreed or market value
    Car coin icon
    Agreed Or Market

    Available discounts

    • 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 Or Market

      Available discounts

        Details
      • Gold Comprehensive Car Insurance

        Monthly premiums
        Calendar icon
        Yes Costs Extra
        Choice of repairer
        tools icon
        Optional Extra
        Choice of excess
        coins icon
        $550 - $1,900 (varies By State)
        Agreed or market value
        Car coin icon
        Agreed Or Market

        Available discounts

        • No Claim Discount
        • Online Discount Up To 15%
        Details
      • Comprehensive Car Insurance

        Monthly premiums
        Calendar icon
        Yes Costs Extra
        Choice of repairer
        tools icon
        Optional Extra
        Choice of excess
        coins icon
        $500 - $2,200
        Agreed or market value
        Car coin icon
        Agreed Or Market

        Available discounts

        • Online Discount $75
        Details
      • Seniors Car Insurance

        Monthly premiums
        Calendar icon
        No
        Choice of repairer
        tools icon
        No
        Choice of excess
        coins icon
        $500 - $2,500 (varies By State)
        Agreed or market value
        Car coin icon
        Agreed

        Available discounts

        • Price Beat Offer Available For Eligible Drivers Over 50 Years Old Switching From A Comparable Policy With The Code ‘SENIORS’. T&Cs Apply.

      * 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 and the Target Market Determination 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