Cheap Car Insurance Australia

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How we identified the cheapest car insurance

The Mozo Experts Choice Car Insurance Awards^ annually recognise the best in two categories: exceptional value and exceptional quality. This article zeros in on the 2023 policies that offer exceptional value, presenting you with the cheapest car insurance options that don't compromise on essential coverage. 

The categories under the microscope:

  • Exceptional Value Car Insurance. Ideal for the everyday driver looking for both cost efficiency and comprehensive protection.
  • Exceptional Value Young Driver Insurance. These policies cater to drivers under 25, balancing affordability with the coverage younger motorists require.
  • Exceptional Value Senior Driver Insurance. Tailored for seasoned drivers, offering competitive rates alongside vital cover.

Ready to meet these budget-friendly champions? We've lined up a few standout policies from the 2023 awards for you to check out.

Mozo award-winning car insurance policies

ROLLiN' - Comprehensive Car Insurance*
  • New-for-old replacement
  • No additional excess for younger drivers
  • Pay monthly premiums at no extra cost

ROLLiN' does car insurance a little differently. Its Comprehensive Car Insurance policy is like a subscription which, unlike many insurance policies, means customers can pay monthly premiums and opt out at any time with no exit fee. The policy includes new-for-old car replacement (if it’s done less than 15,000km), no excess for one windscreen repair per policy period, and ROLLiN' will provide a hire car after theft and not-at-fault accidents (up to $80/day for a covered event up to 21 days). Plus there’s no additional excess for younger drivers – although there is a $3,000 excess for unlisted drivers.

Better still, Rollin’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 2023 Mozo Experts Choice Awards^ for Exceptional Value Car Insurance and Exceptional Value Young Driver Insurance (which ROLLiN' says applies to anyone under 40). Maybe there’s a good reason why ROLLiN' claims it can be up to 30% cheaper than other comprehensive car insurance policies.

Budget Direct - Gold Comprehensive Car Insurance*
  • 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^ and home insurance categories, which helped it secure the crown of 2023 Exceptional 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 (whichever comes first) you can also get a 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 a deal that won’t dig too deep into your savings!

Virgin Money - Price Saver Comprehensive*
  • 15% online discount for first year of cover
  • New car replacement
  • $500 personal effects cover
Find out more

As a 2023 Mozo Experts Choice Award^ winner in the Exceptional Value Young Driver Insurance^ category (not to mention a win in the general Exceptional Value Car 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 (and up to $500 for child seats and capsules that were in the car), up to $1,000 hire car cover (capped at 14 days up to $75 per day) after a ‘no fault’ accident, and there’s even a new-for-old replacement feature if your car is written off and it’s either under two years old and has less than 40,000 km on the dial. Plus Virgin Money will also give a 15% discount for the first year of the policy if you’re a new customer applying online. 

Other cheap car insurance policies

However, 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: 

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

Keen to explore more top-quality policies? Read our broader selection of the best car insurance in Australia, then check out the methodology report for all the details on how winners are chosen.

For a full list of winners, head over to the Mozo Experts Choice Car Insurance Awards^.

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.

Relatively speaking though, the varying levels of protection might make a more expensive option more cost-effective in the long-term based on your circumstances.

For example, comprehensive car insurance does usually come with a higher price tag than third party car insurance, simply because it offers you more comprehensive coverage. Third-party insurance covers damages to other people's cars if you're at fault, but it won't cover any repairs your own car needs. Comprehensive insurance, however, provides broader protection, including for your own vehicle. So, while it's a bit more expensive initially, it can save you money in the long run if your car needs repairs.

Here's how they each compare in terms of cost-effectiveness:

Insurance Type
Coverage Details
Cost Estimate
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
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

Discovering ways to achieve cheaper car insurance starts with understanding the factors that influence premiums. Some factors are within your control, offering opportunities to reduce costs. Here we'll explore these elements, distinguishing between inherent factors, which are generally fixed, and adjustable factors that you can influence to potentially secure cheaper car insurance.

Inherent Factors Affecting Your Premium:

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

  • Driving history. A clean driving record can lead to cheaper premiums, signalling a lower risk to insurers.
  • Parking habits. Safe parking, like using a garage, often leads to cheaper insurance rates compared to street parking.
  • Residential area. Living in a low crime area can positively impact your premiums, making your car insurance cheaper.
  • Car’s safety rating. Vehicles with higher safety ratings are often rewarded with lower premiums.
  • Age factor. Generally, more mature and experienced drivers benefit from cheaper car insurance rates.

Adjustable Factors to Lower Your Premium:

These are areas where your choices can help in reducing your car insurance costs.

  • Policy excess. Choosing a higher excess can make your premium cheaper. It's crucial to balance potential savings with the ability to afford the excess in case of a claim.
  • Driver restrictions. Limiting who can drive your car to those with clean driving records and over a certain age can result in a cheaper premium.
  • Driving habits. Safe driving practices can significantly lower your risk profile, leading to cheaper insurance costs.
  • Vehicle usage. Opting for a 'pay-as-you-drive' policy can be cost-effective for those who drive less, making car insurance cheaper.

By understanding these factors, you're better positioned to find the most affordable car insurance policy for your needs. This knowledge is the first step in securing cheaper car insurance.

Ready to actively reduce your car insurance costs? Our next section provides practical tips to help you find cheap car insurance, focusing on steps you can take to lower your premiums effectively.

Tips on finding 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, take advantage of it. Parking your car there could lead to a cheeky discount on your insurance.
  • Stay on top of payments. Avoid those pesky late fees. Keep on track with payments to make sure you're not forking out more than you need to.
  • Up your excess. If you can swing a higher excess, it might trim down your regular premium. Just make sure it's an amount you're comfy with if you ever need to claim.
  • Cash in on being loyal. Been with the same insurer for a while? See if they're sweetening the deal with loyalty discounts or other benefits.
  • Combine and save. Got home insurance? Why not bundle it with your car insurance and potentially bag a bargain on both?
  • Don't just renew, review. When it's time to renew, do a quick shop around to compare policies. You might find a better deal that's just been waiting for you to click.
  • Check out online offers. Some insurers throw in discounts for managing your policy online. Easy savings at the click of a button? Yes, please.
  • Mindful driving pays off. Drive like a pro and cut down on how much you're on the road – it could lead to a nicer price on your premium.
  • Install security devices. Equip your car with alarms and immobilisers. It can reduce theft risk and lower your premiums.
  • Be selective with drivers. Restrict your car's drivers to those over 25 with a clean record. It could mean more savings.
  • Pay-as-you-drive. Drive less? Look for pay-as-you-drive policies tailored for low-mileage drivers. It could be a perfect fit for your wallet.

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.

You've Found Cheap Car Insurance, Now What?

Securing your affordable car insurance policy is just a few steps away:

  • Gather your information. Ensure you have your driver's licence number, the Vehicle Identification Number (VIN) of your car, your age, and address. These details are crucial for your insurance application.
  • Understand the impact. Keep in mind, factors like your age and the type of car you drive can affect your premium. Younger drivers and high-value or modified cars often incur higher costs.
  • Apply with confidence. With your details at hand, you're ready to apply. You can either contact the insurance provider directly or apply online. Remember, accuracy is key to avoid issues with your policy coverage.

This preparation ensures a smooth application process, allowing you to efficiently secure the budget-friendly insurance you've found.

Maximising value: finding cheap comprehensive car insurance

Now that you're well-versed in the ins and outs of cheap car insurance, let's shift gears to the merits of comprehensive car insurance and how it doesn't need to destroy your wallet. Comprehensive insurance adds cover to your car and therefore, keeping your car safe is the key to getting you cheaper rates. Here's how:

  • Secure parking. Insurers love it if you park in a garage or a secure parking space, as it significantly lowers the risk of theft and vandalism. This often translates into lower premiums.
  • Mindful driving. The less you drive, the lower your risk of accidents. Most insurers these days may discount your policy significantly if you don’t drive much.
  • Invest in security. Equip your car with a good alarm system or other anti-theft devices to deter theft and potentially lower your rates.
  • Smart car choices. If you're car shopping, remember that safety features and comfort are important, but also consider the model's popularity. Popular models often have more affordable parts, which can keep repair costs and insurance premiums down.

Keeping your car safe and sound can easily lead to cheaper comprehensive insurance, so it’s a smart move all around.

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