Australia's cheapest car insurance? That’s tricky, but start with these award winners

Cheapest car insurance meca content

Given everything that cars enable us to do – from our daily commute to connecting with family and friends (when social restrictions allow) – it makes sense that many Aussies opt for a comprehensive car insurance policy as a safeguard against unexpected events. But let’s face it, comparing car insurance policies isn’t the most entertaining activity. 

Luckily, Mozo has a solution. 

Every year Mozo’s data experts sit down and review car insurance policies across Australia to identify the top contenders in the Mozo Experts Choice Car Insurance Awards. In late 2021, our expert judges gave out awards to car insurance policies in two different areas: Exceptional Value and Exceptional Quality. 

Here, we're digging into the policy details of a few of the Exceptional Value winners. These are policies that took out awards for Exceptional Value Car Insurance, Exceptional Value Young Driver Insurance or Exceptional Value Senior Driver Insurance

While there is no one cheapest insurance provider or policy to suit everyone, our judges went through a rigorous research process to identify car insurance policies that are among the cheapest for the kind of cover they provide across a range of different consumer needs.

“Let’s face it, finding a great car insurance policy isn’t an easy or necessarily fun process for many Australians, which is why our awards are designed to highlight some of the leading policies that provide either exceptional value or exceptional quality,” said Mozo Expert Judge, Peter Marshall. 

“For the Exceptional Value Awards, we assessed more than 10,000 unique quotes and matched cost against minimum cover levels in order to find the insurance providers that consistently offered premiums lower than the competition for similar types of products.

“While these policies may not be the absolute cheapest around, we do believe that the combination of price and features they have on offer make them the best value for many Australians.” 

To understand what these policies offer, let’s shine a spotlight on a few of the standout car insurance policies named in the 2021 Mozo Experts Choice Awards:

Standout car insurance winners in 2021

Huddle Comprehensive Car Insurance*
Huddle
  • Pay-as-you-drive option

  • New-for-old replacement

  • Up to $500 personal property cover

One of the newer, tech-driven players on the scene, Huddle is all about providing innovation, flexibility and - as its award wins suggest - value. After all, Huddle’s Comprehensive Car Insurance Policy picked up two 2021 Mozo Experts Choice Awards in the Exceptional Value Car Insurance and Exceptional Value Senior Driver Insurance categories. 

Among its features, the Comprehensive Car Insurance policy offers new-for-old replacement (if your car’s under 2 years old), up to $500 personal property cover in the event of theft or damage, and up to $500 cover for travel and accommodations costs after an accident if you are more than 200km from home. There’s even a pay-as-you-drive option for drivers who drive under 15,000km a year, which Huddle says can work out to be up to 30% cheaper than regular comprehensive cover.

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

  • Up to a 15% discount for applying online

  • Rideshare cover included

Named a 2021 Mozo Experts Choice Award winner for Exceptional Value Car Insurance category, Woolworths’ Comprehensive Car Insurance offers plenty of options to suit the needs of different customers. 

Don’t drive very often? The Drive Less, Pay Less option lets you set an annual kilometre range which, if you stay under it, will score you a discount on your premium. Want to drive for Uber or Ola? If you’re looking for car insurance for ridesharing you’ll be pleased to know that Woolies’ Comprehensive Car Insurance policy covers cars for private and public use. 

Other flexible features include a broad choice of excess ($500 - $5,000), a choice between agreed or market value, and new-for-old car replacement if your wheels are less than two years old. There’s also up to a 15% discount on your first year of cover with this policy if you apply online.

Budget Direct Gold Comprehensive Car Insurance*
Budget Direct
  • 15% first-year discount when applying online

  • New-for-old replacement

  • $500 of personal property cover + another $500 for baby seats

Budget Direct has developed a reputation for providing Australians with great value insurance policies, and that’s been enhanced further with its latest Mozo Experts Choice Awards. The budget-friendly provider took out wins across car, home and landlord insurance categories, which helped it secure the crown of 2021 Value Insurer of the Year.

With the policy, you’ll get $500 of personal property cover (and an additional $500 to cover baby capsules or seats), up to $1,000 to replace car keys and locks, and you can opt-in to choose your own repairer after an insurable incident as an optional extra. Plus, if your car is less than two years old or has driven under 40,000km you’ll also get new-for-old replacement if it’s written-off. Add the 15% discount on your first year’s premium for signing up online and you’ve got yourself a deal that won’t dig too deep into your savings.

Poncho Comprehensive Car Insurance*
Poncho
  • New-for-old replacement

  • No additional excess for younger drivers

  • Pay monthly premiums at no extra cost

Poncho does car insurance differently. Its Comprehensive Car Insurance policy is like a subscription which, unlike many insurance policies, means that customers can pay monthly premiums and opt out at any time. The policy includes new-for-old car replacement (if it’s done less than 15,000km), no excess for windscreen cover and Poncho will provide a hire car after theft and not-at-fault accidents (up to $80/day). Plus there’s no additional excess for younger drivers, although there’s a $3,000 excess for unlisted drivers!

Better still, Poncho’s Comprehensive Car Insurance was judged to be among the best policies in Australia when it comes to providing value, as it took out not one, but two 2021 Mozo Experts Choice Awards for Exceptional Value Car Insurance and Exceptional Value Young Driver Insurance.

Virgin Money Price Saver Comprehensive*
Virgin Money
  • 15% online discount for first year of cover

  • New car replacement

  • $500 personal effects cover

As a 2021 Mozo Experts Choice Award winner in the Exceptional Value Young Driver Insurance category, you can be sure that Virgin Money’s Comprehensive Car Insurance is one of the most competitively-priced policies in Australia for drivers under 25. But what are some of the features that stand out?  

Well, the policy provides up to $500 cover if your personal effects are lost or stolen, up to $1,000 hire car cover after a ‘no fault’ accident and there’s even a new-for-old replacement feature if your car is written off and it’s less than 24 months old or has under 40,000km on the clock. Plus Virgin Money will also give a 15% discount for the first year of the policy if you’re a new customer applying online.

Youi Comprehensive Car Insurance*
Youi
  • New-for-old car replacement

  • $1,000 emergency travel and accommodation cover

  • Hire car after theft and not-at-fault accident

Youi’s Comprehensive Car Insurance policy combines flexible features and dedicated services at an accessible price, which is why it won’t be a surprise to learn that it was named a 2021 Mozo Experts Choice Award winner by our experts in the Exceptional Value Senior Driver Insurance category. 

In an emergency, you’re covered for up to $1,000 in essential repairs, travel and accommodation costs when you’re more than 100km from home, which can be used flexibly depending on the situation. On top of this, the policy includes emergency roadside assistance and Youi will cover towing costs for up to 50km in regional areas and 20km in metropolitan areas. And if your car is deemed a write-off after an accident or theft, Youi offers new-for-old car replacement, so long as your vehicle is under two years old and has travelled less than 40,000km.

* 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

Other top value car insurance policies

These insurance companies had other winning providers beside them in the ranks of Mozo’s Exceptional Value Car Insurance Awards. So, if you’re looking for affordable car insurance policies in 2021, make sure to also investigate:

  • ING Comprehensive Car Insurance 

  • QBE Comprehensive Car Insurance

  • RAC Comprehensive Car Insurance

  • RACV Comprehensive Car Insurance

  • SGIO Comprehensive Car Insurance

Ready to take a look at the full list of winners? Check out the latest Mozo Experts Choice Car Insurance Awards winners list, where you’ll also be able to view a copy of our Car Insurance Awards methodology report to better understand how the awards were judged.