Car insurance costs increase 2% despite COVID restrictions

While COVID-19 lockdowns resulted in many Australians using their cars less, year-on-year Mozo data found the cost of car insurance rose in 2020.

The study saw comprehensive car insurance premiums increase by 2.15% on average across the country.

Mozo analysed more than 10,000 comprehensive car insurance quotes using unique customer scenarios in 2019 and 2020 to see how price changes differed across the country. 

Young drivers aged 18-24 saw the largest premium jumps (up 3.10% on average), while New South Wales and Victorian drivers were hit harder than other states and territories with price hikes above 3%.

Earlier in the year, Mozo’s 2020 car insurance report recorded a third of drivers were already struggling to pay for comprehensive cover. With this in mind, Mozo director Kirsty Lamont said it’s “hard to see how insurance companies can justify hiking up car insurance premiums.” 

Can you still get car insurance discounts post-COVID?

At the height of the pandemic some providers offered car insurance discounts to customers facing financial hardship or those driving less often. Many of these offers have now ended.  

But this doesn’t mean all discounts are off the table. Lamont said it’s still worth contacting your provider to request a discount, whether it's for remaining loyal to them or driving less. But what do you do if they’re not playing ball?

“Something as simple as comparing premiums and switching to the best value insurer you can find can significantly reduce your costs,” Lamont said.

If you’re one of the 75% of Aussie drivers who haven’t contacted their insurance provider for a discount, get on the blower for a better deal or head to Mozo’s comprehensive car insurance comparison page to explore other car insurance quotes.

Compare comprehensive car insurance policies - last updated February 27, 2021

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  • Comprehensive Car Insurance

    Monthly premiums
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    Yes Costs Extra
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    Optional Extra
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    $500 - $1,850
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    Agreed Or Market

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    • Online Discount Up To 15%
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  • Comprehensive Car Insurance

    Monthly premiums
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    Yes Costs Extra
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    Optional Extra
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    $400 - $1,850 (varies By State)
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    • No Claim Discount
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  • Comprehensive Car Insurance

    Monthly premiums
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    No
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    $800 - $2,000
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    Agreed

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  • Comprehensive Car Insurance

    Monthly premiums
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    No
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    $800 Flat Excess Fee
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    Agreed

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    • Comprehensive Car Insurance Policy

      Monthly premiums
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      Yes Costs Extra
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      No
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      $650 - $795 As A Fixed Excess; Varying Between States
      Agreed or market value
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