Cheap Car Insurance Australia

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How we identified the cheapest car insurance

Every year, our Mozo Experts Choice Car Insurance Awards highlight the best value car insurance policies, in other words, the most affordable options that still provide all the essential features you need.

So, without further delay, let's dive into the winners for the best overall value, best value for seniors, and best value for young drivers.

Best value overall

Budget Direct - Gold Comprehensive Car Insurance**
  • 15% first-year discount when applying online
  • New-for-old replacement
  • Mozo Experts Choice Award^ winner, Best Value Overall

Budget Direct shakes up the game with its build-your-own policy approach, making it a wallet-friendly choice for diverse demographics. Start with the basic package, which includes new-for-old replacement, essential repairs, accidental damage cover and all the other essentials. Want more? Easily add extras like roadside assistance or excess-free windshield cover. Start simple, save big, and customise as you go! Just be aware that the 14-day hire car cover is a little on the short side.

Best value, young drivers

ROLLiN' - Comprehensive Car Insurance**
  • No additional excess for younger drivers
  • Monthly payments you can cancel any time
  • Mozo Experts Choice Award^ winner, Best Value Young Drivers

ROLLIN' stands out for young drivers looking for top value. Say goodbye to the hefty 'young driver excess' other insurers often charge. ROLLIN’ offers flexible monthly payments without the usual extra costs and allows cancellation anytime without fees. Key coverage includes new-for-old car replacement, accidental damage, and excess-free windshield repairs. Just be aware that the $3,000 unlisted drivers is a bit on the high side.

Best value, seniors

Budget Direct - Gold Comprehensive Car Insurance**
  • 15% first-year discount when applying online
  • New-for-old replacement
  • Mozo Experts Choice Award^ winner, Best Value Seniors

Budget Direct shines again, this time for seniors. Thanks to the build-your-own approach, seniors who want to stretch their dollar and still get all the essentials like essential repairs, accident cover and new for old replacement. But if you need a little more security like roadside assistance or the ability to choose your own repairer, all you have to do is add it to your policy as an optional extra. Just be aware that the 14-day hire car cover is a little on the short side.

Best value overall

Virgin Money Comprehensive Car Insurance**
  • 15% online discount for first year of cover
  • 10,000 Velocity points if you purchase by 30 Sep 2024
  • Mozo Experts Choice Award^ winner, Best Value Overall
Find out more

Virgin Money’s Comprehensive Car Insurance is another option offering excellent value, including for drivers under 25. Its affordable base cover offers everything you’d expect like accidental damage, essential repairs, new-for-old car replacement and more. Then you can add on whatever extras you need, like excess–free windshield cover, roadside assistance, and the ability to choose your own repairer. Just be aware that the 14-day hire car cover is a little on the short side.

Other cheap car insurance policies

The providers above weren’t the only exceptional value winners at this year's awards. So if you’re looking for affordable car insurance policies in 2023, these could be worth investigating: 

ANZ Comprehensive Car Insurance
ING Comprehensive Car Insurance
RACV Comprehensive Car Insurance
APIA Comprehensive Car Insurance
NRMA Comprehensive Car Insurance
Real Insurance Comprehensive Car Insurance
Bingle Comprehensive Car Insurance
RAC Comprehensive Car Insurance
Suncorp Insurance Comprehensive Car Insurance & Comprehensive Extras Car Insurance
ING Comprehensive Car Insurance
RACT Comprehensive Car Insurance
TIO Comprehensive Car Insurance

Want something more premium? Read our broader selection of the best car insurance in Australia.

For a full list of winners, head over to the Mozo Experts Choice Car Insurance Awards, then check out the methodology report for all the details on how winners are chosen..

Which is the cheapest car insurance level?

While Compulsory Third Party (CTP) insurance is technically the cheapest, it’s also mandatory and only covers injuries to others. 

For vehicle-related coverage, your choices are third-party property (TPP), third-party fire and theft (TPFT), and comprehensive insurance. In absolute terms, for the same driver driving the same car, TPP is cheapest, followed by TPFT, then comprehensive. Here’s how it breaks down:

Insurance Type
Coverage Details
Cost Level
Most Cost-Effective For
Third-Party Property
Damage to others' property only
$
Owners of older, low-value vehicles; infrequent drivers
Third-Party Fire and Theft
Damage to others' property, and your car for fire and theft
$$
Drivers of moderately valued cars; those in areas with higher theft or fire risk
Comprehensive
Broad coverage, including your car, others' cars, and additional risks
$$$
Owners of high-value vehicles; frequent drivers; those seeking peace of mind with extensive protection

Note: Cost estimates are indicative and can vary based on factors like car make and model, driving history, and location. Just make sure you check the fine print in the product disclosure statement (PDS) before signing up so you know exactly what you’re paying for first.

Understanding car insurance costs: factors that lead to cheaper rates

Working out how you can land cheaper car insurance starts with understanding what exactly influences premiums. Some factors are within your control, and others are not. 

Let’s first look at those things that are inherent in the pricing, meaning it’s difficult to change them outside of making large lifestyle changes: Then we’ll move onto those levers you can actually pull to get prices down almost immediately.

Inherent Factors Affecting Your Premium:

These aspects typically fall outside your immediate control but play a significant role in determining the cost of your insurance.

  • Driving history. A clean driving record demonstrates a lower risk to insurers and can bring down your premium. A spotty record, conversely, can lead to higher premiums - and it can take a significant period of safe driving to get your premiums back on track.
  • Parking habits. Safe parking, like using a garage, can often lead to cheaper premiums vs. street parking. Again, if you don't have a garage, this isn’t something easily changed.
  • Residential area. Where you live plays a huge role in your premiums. Low crime and/or low traffic areas generally mean lower premiums. Higher crime and/or higher traffic areas generally mean higher premiums.
  • Car’s safety rating. Vehicles with high safety ratings generally attract lower premiums vs. lower rated cars. So try to make your next car a safe one!
  • Age factor. Generally, more mature and experienced drivers benefit from cheaper car insurance rates. With this one, you may just have to bide your time.

Adjustable Factors to lower your premium:

Now what you’ve been waiting for: those factors that act as levers you can pull to bring your premiums down

  • Policy excess. This is what you pay out-of-pocket when you make a claim. If you choose a higher excess, the insurer saves money on claims. And you save on premiums.
  • Driver restrictions. You’re not required to list out on your policy every single person that will be driving your. But if you do, you can save some money if everyone has a good driving record. For any unlisted driver that causes an accident, you’ll usually have to pay an additional ‘unlisted driver’ excess.
  • Vehicle usage. Many insurers will reward you with lower premiums for driving your car less. These 'pay-as-you-drive' policies ask you to estimate your yearly mileage and will charge you according to various distance bands. Just don’t lie about your mileage, because eventually the insurer will see your odometer. 

Ready to actively reduce your car insurance costs? Our next section provides practical tips to help you find cheap car insurance.

How to find cheap car insurance

Keen to cut down your car insurance bill? We've got you covered. Check out these straightforward tips to potentially nab a lower premium:

  • Use your garage. If you've got a garage, use it and tell your insurance company you do. Secured cars are much less likely to get dinged up than those on the streets, especially in congested areas. This can immediately shave some $$ of your premium.
  • Up your excess. The choice of excess is like a lever you can pull to adjust your premium up and down. If you can swing a higher excess, do it. Just make sure it's an amount you can handle if you ever need to claim.
  • Cash in on being loyal. Been with the same insurer for a while? See if they'll sweeten the deal with loyalty discounts or other benefits. Since competitors can offer sign-up deals, telling your current insurer you’re looking around can convince them to offer you something better.
  • Combine and save. Many insurers will offer bundled deals for insuring multiple cars or taking out other policies like home insurance. See if your insurer offers bundled deals, and if not, compare policies that do.
  • Mindful driving pays off. Insurers will reward safer driving either directly (through things like the no claims bonus) or indirectly (though normal risk analysis).
  • Claim less. Every time your insurer pays out a claim, there’s always a chance your premiums will increase, even if the claim isn’t your fault. So next time you get into a minor bingle consider settling privately, handling repairs yourself, or tolerating small damages if the responsible party isn’t identifiable. 
  • Install security devices. As with garage parking, insurers like safe cars. Equipping your car with alarms and immobilisers can reduce theft risk and potentially lower your premiums.
  • Be selective with drivers. Restrict your car's drivers to those over 25 with a clean record, and list these drivers on your policy. You could be rewarded with lower premiums.
  • Pay-as-you-drive. Drive less? Look for pay-as-you-drive policies that let you estimate your yearly mileage. The lower the estimate, the lower your premium. Just don’t lie about how much you drive, as insurance companies have ways to find out.

With these pointers in your pocket, you're all set to chase down those savings on your car insurance. Looking for more ways to save on car insurance? Read our detailed car insurance discounts guide.

Cheap car insurance frequently asked questions

What companies have the cheapest car insurance?

There are plenty of cheap car insurance companies to choose from. Based on Mozo research, RoLLiN’, Budget Direct, Virgin Money and Bingle offer some of the cheapest and best car insurance policies in Australia, on average. In addition to having some of the most affordable policies around, these cheap car insurers consistently score well in the Mozo Car Insurance Experts Choice Awards.

How does your age affect the cost of car insurance?

If you’re under 25, you might notice your car insurance premiums are a bit higher. It's pretty standard, as insurance companies often view younger drivers as having less experience. The good news is, once you hit the 25-year-old mark, you might start seeing those rates drop, all thanks to a bit more experience under your belt.

What is the cheapest car insurance for younger drivers?

Our research shows that RoLLiN’ is a particularly budget-friendly option for younger drivers, in part because it does not include a young driver excess. Virgin Money, Budget Direct and ING’s policies also earn special mention.

Does owning your car outright result in cheaper car insurance?

Owning your car can trim your insurance costs since insurers often see car owners as lower-risk. You also have the freedom to choose less expensive coverage when there's no lender involved. Just remember, your final premium also factors in your car type, driving history, parking habits and more.

What is the cheapest car insurance for seniors?

According to our research, when hunting for cost-effective comprehensive car insurance for those over 55, AAMI, Apia, Budget Direct, and GIO emerged as frontrunners. They've been applauded for their ability to provide quality coverage without the hefty price tag.

How much should I pay for car insurance in Australia?

It's pretty common for insurance premiums to vary from driver to driver, but you can still get a sense of whether you're paying too much simply by comparing quotes from different insurance providers. This way, you can check out the average cost and see where your policy stands.

Keep in mind, the cost of your insurance premium can change based on a few factors. For instance, living in bustling cities like Sydney or Melbourne, as opposed to a quiet town in rural NSW, can significantly influence your rates. Where you park your car at night and your driving history are also factors.

So, when you're looking at those quotes, remember they're shaped by these specifics. The full 2023 Mozo Car Insurance report goes in depth on how these factors can affect the cost of your car insurance.

How can I compare cheap car insurance in Australia?

One way to compare cheap car insurance in Australia is to check out the winners of the 2023 Mozo Experts Choice Awards for Car Insurance. For the 2023 awards, our research team reviewed comprehensive car insurance policies for value by reviewing 58 policies from 51 insurance providers. Our awards included Exceptional Value Car Insurance, Exceptional Value Young Driver Insurance and Exceptional Value Senior Driver Insurance.

The Mozo Experts Choice Awards have been going strong since 2014, so our research team has plenty of experience when it comes to analysing PDS documents and crunching numbers. Head to the 2023 Mozo Experts Choice Car Insurance Awards^ page for a full list of the winners and a link to the methodology report.

What if I can't afford car insurance?

Concerned about affording car insurance? Here’s what you need to know: Every driver needs Compulsory Third Party (CTP) insurance as it’s legally required. But if comprehensive car insurance is out of your budget, consider third-party insurance. It's less expensive and covers damage you might cause to other vehicles.

If you're already on a comprehensive plan and the excess for a claim is a stretch, talk to your insurer. Many offer the option to pay the excess in instalments, making it more manageable.

Finding the right balance between cost and coverage is key. Don't hesitate to explore different options or discuss payment plans with your insurer to find a solution that suits your budget.

Will demerit points make my car insurance more expensive?

If you have a lot of demerit points to your name, your insurance premium may end up being more costly. This is because you’re viewed as higher-risk to an insurance provider, and therefore more likely to make a claim. The bread and butter of the insurance biz is NOT paying out claims, so they reward safer drivers because of that.

Will an accident increase my car insurance costs?

In the event of an accident, whether your car insurance premium increases can depend on who's at fault. A one-off accident, particularly if it's not your fault, might not bump up your premium. However, if you're frequently involved in accidents, especially if you're at fault, this could lead to higher premiums over time.

On the flip side, many insurers offer no-claims discounts. If you maintain a safe driving record without any claims for a certain period, you could be rewarded with lower insurance costs. The specifics vary by provider, so it's worth checking their terms and conditions.

* 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