Beware of car insurance loyalty renewal traps

woman stressed about car insurance loyalty traps

Consider yourself a loyal customer? Well the truth is when it comes to your car insurance you could be burning a big hole in your wallet by auto-renewing your policy each year instead of shopping around.

In fact, many car insurers bump up the cost of premiums each time you auto-renew your policy - meaning you are more out of pocket the longer you stick around. Research overseen by former ACCC chairman Professor Allan Fels found that policy renewal prices are typically 25% higher than those paid by new customers. 

So how can you save from paying this car insurance “loyalty tax”? By comparing quotes from multiple insurers instead of just auto-renewing, you could save hundreds of dollars a year.  Mozo research uncovered an average saving of $902 a year to be gained by shopping around for comprehensive car insurance and switching to the best deal^^.

By comparing other policies, you could take advantage of new customer offers like an online application discount, and also save on the price of your premiums. So start your search and stop paying too much - scroll down for some killer car insurance offers available right now.

Top Car Insurance Deals February 2021

Budget Direct Comprehensive Car Insurance*
  • 15% online discount
  • 2020 Mozo Experts Choice Award winner^
  • Your choice of repairer

Looking to make the switch to a cheaper car insurance policy? Budget Direct’s Comprehensive Car Insurance might be exactly what you need. With a 15% discount when you sign up online as well as cover for a range of events, a 24/7 claims service and the choice of your own repairer, this policy has a lot going for it. Not only that, our experts loved Budget Direct too, awarding it the 2020 Value Insurer of the Year as well as Exceptional Value Car Insurance as part of the 2020 Mozo Experts Choice Awards^.

Qantas Comprehensive Car Insurance*
  • Earn up to 40,000 Qantas Points on application (conditions apply)
  • Earn Qantas Points when you pay your premium
  • New for old replacement (under 2 years/40,000 km)

If you are after a better car insurance deal and also want to be rewarded for it, Qantas Comprehensive Car Insurance is worth a look. On this policy, customers can earn up to 40,000 Qantas Points when they first sign up (min. spend $1,550 to earn 40,0000 points until 28 February 2021) based on the premium cost. Plus, for each $1 spent on the premium, policyholders will earn 1 Qantas Point. There are also a bunch of handy features like a 24/7 claims service, new for old replacement for written-off cars (under 2 years/40,000kms), hire car cover up to 14 days and more!

QBE Comprehensive Car Insurance*
  • $75 online discount
  • 2020 Mozo Experts Choice Award winner^
  • New for old replacement (up to 3 years/60,000kms)

QBE Comprehensive Car Insurance not only offers a wide range of cover but is also award-winning and offers a juicy online discount. For new customers looking to save on their premium in the first year, QBE offers $75 off when you apply online. And if you own a car that is up to 3 years old and has done 60,000kms or less, you’ll be pleased to know there is a new for old replacement if your car is written off. This policy also took home a 2020 Mozo Experts Choice Award^  for Exceptional Value Car Insurance.

Bank of Queensland Comprehensive Car Insurance *
  • No claims bonus up to 65%
  • New for old replacement (up to 2 years)
  • Monthly premium payments at no extra cost

Not had to make a claim on your car insurance policy in the last four years? Looking for a more competitive policy? Bank of Queensland Comprehensive Car Insurance could be the right choice for you. If you like discounts, this policy comes with an impressive no claim discount up to 65% - just as long as you can prove you’ve held and made no claims on your car insurance for four consecutive years. Bank of Queensland also offers a range of cover as well as new for old replacement on written-off cars (up to 2 year old) and the option to make monthly premium payments at no extra cost.

Stella Comprehensive Car Insurance*
  • New for old replacement (up to 3 years/60,000kms)
  • No claim reward for up to 3 years
  • Personal items cover up to $1,000

After some stellar car insurance? Consider Stella Comprehensive Car Insurance. With a bunch of cover on this like baby gear, personal items, travel expenses, accommodation and more, this policy may suit all your needs. Not only that, Stella offers new for old replacement on written-off vehicles up to 3 years old and that have done up to 60,000 kms. Plus, there’s a no claim reward of up to $100 off your basic excess for up to three years, for every year you don’t make a claim.

^^Research as part of the Mozo Pandemic Premiums: Mozo's Covid Car Insurance Report 2020 compared over 10,000 different car insurance quote scenarios and found the average annual premium difference between comparable policies is $902.

*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.

Any information provided on this page should be considered a summary and general advice only. All information should be verified before purchase via the relevant Product Disclosure Statement (PDS).

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.