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

Cheapest car insurance meca content

It’s with you on your daily commute, it shoulders the burden on each shopping trip and it helps you stay connected with your friends and family. That’s right, we’re talking about your car. 

Given everything that cars provide, it makes sense that many Aussies opt for a comprehensive car insurance policy as a safeguard against unexpected accidents and events. But let’s face it, comparing car insurance policies isn’t the most entertaining activity. 

Luckily, Mozo has a solution for you. 

Every year Mozo’s data experts sit down and review car insurance policies across Australia to identify the best policies around. The result? The Mozo Experts Choice Car Insurance Awards

In late 2020, our expert judges gave out awards to car insurance policies in two different categories: Exceptional Value and Exceptional Quality. 

“We understand that 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 on the market 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,” Marshall said.

To understand what these policies offer, let’s shine a spotlight on a few of the standout car insurance policies award in the 2020 Mozo Experts Choice Awards that are still offering great value into 2021:

Standout car insurance winners in 2021

Budget Direct Gold Comprehensive Car Insurance*
Budget Direct
  • 15% online premium discount

  • Choice of repairer

  • New-for-old replacement

Budget Direct already has a stellar reputation for providing Australians with great value insurance policies, but they’ve taken it to another level lately. 

The budget-friendly provider took out wins across a number of car insurance categories, which helped it secure the crown of Value Insurer of the Year in 2020. They also laid claim to this title in the home insurance and landlord insurance Mozo Experts Choice Awards.

Mozo’s judges found that Budget Direct’s car insurance policies consistently ranked among the cheapest quotes around, while still maintaining a solid level of cover. With this comprehensive policy, you’ll get $500 of personal property cover, up to $1,000 to replace your car keys and locks, and you can opt-in to choose your own repairer after an insurable incident for an additional premium. 

Plus, if your car is less than two years old and has driven under 20,000km, you’ll also get new-for-old car replacement if it’s written-off. Add the 15% discount on your first year’s premium just for signing up online, and you’ve got yourself a darn good deal that won’t dig too deep into your savings.

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

  • $1,000 emergency travel and accommodation cover

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

Youi’s comprehensive car insurance policy combines sought-after flexible features and dedicated services at an accessible price. 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.

There are other generous cover limits included in this policy. In an emergency, you’re covered for up to $1,000 in essential repairs, travel and accommodation when you’re more than 100km from home, which can be used flexibly depending on the situation. On top of this, Youi will cover towing costs for up to 50km in regional areas and 20km in metropolitan areas.

Drivers who require their car daily will be pleased to know that hire car coverage for 14 days is included as standard after a theft or an accident where you are found to not be responsible for damages. You can also include at-fault hire car cover as an optional extra for an additional premium.

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

  • Up to a 15% discount for applying online

  • Rideshare cover included

You’ll find all kinds of cost-effective inclusions within this policy that’ll suit customers with a range of different driving needs. For those who don’t drive very often, Woolies offers their Drive Less, Pay Less option. This allows you to set an annual kilometre range which, if you stay under it, will score you a discount on your premium.

It’s also a suitable policy for people working as drivers through a rideshare app like Uber or Ola. This is very important for anyone using their car for this purpose, as car insurance for ridesharing provided by these companies doesn’t generally cover damage to your own or other vehicles. 

Other flexible money-saving features include a broad choice of excess ($500 - $2,000), a choice between agreed or market value, and new-for-old car replacement so long as 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. 

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

  • $75 buy-online discount

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

QBE’s award-winning policy will cover you in all kinds of unpredictable events at a very accessible price point. You’ll be sorted in case of accidental damage caused by fire, theft and wild weather events, including damage caused by floods which is a rare standard inclusion in car insurance policies. You can claim up to $500 of emergency repairs to get you driving again after an incident, and up to $1,000 for emergency transport and accommodation is covered if your car is undriveable after an accident and you’re more than 100km from home. 

Your wheels will also be replaced with a new comparable model if you write your car off, so long as it’s under three years old and has driven less than 60,000km. And if you keep a few bits and bobs inside your car, they’ll be covered for up to $1,000 if they’re damaged. If you need a hire car after a theft or not-at-fault accident, QBE will also cover the cost of a rental for up to 14 days, but at-fault hire car cover only comes as an optional extra at an additional cost. Plus as a new customer, you can get a $75 discount on your first annual premium when you apply online.

* 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:

- RAC Comprehensive Car Insurance

- RACV Comprehensive Car Insurance

- SGIO Comprehensive Car Insurance

Ready to take a look at all the winners? Check out the latest Mozo Experts Choice Car Insurance Awards winners list. You can also read through our awards methodology report to better understand how the awards were judged.