Car insurance costs increase 2% despite COVID restrictions

People in medical face masks looking at rising car insurance costs in front of a vehicle getting repairs.

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 insurance company 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

Mozo may receive payment if you click to the website of one of the products below. Mozo does not compare the entire market, but you can see more products by clicking on the ‘See more’ button under the table.
Last updated 21 July 2024Advertiser disclosure
Important information on terms, conditions and sub-limits.
  • Comprehensive Car Insurance

    Monthly premiums
    Calendar icon
    Yes Costs Extra
    Choice of repairer
    tools icon
    Optional Extra
    Choice of excess
    coins icon
    $400 - $2,500
    Agreed or market value
    Car coin icon
    Agreed Or Market

    Available discounts

    • Comprehensive Car Insurance

      Monthly premiums
      Calendar icon
      Yes
      Choice of repairer
      tools icon
      No
      Choice of excess
      coins icon
      $800 Flat Excess Fee
      Agreed or market value
      Car coin icon
      Agreed Or Market

      Available discounts

        Details
      • Gold Comprehensive Car Insurance

        Monthly premiums
        Calendar icon
        Yes Costs Extra
        Choice of repairer
        tools icon
        Optional Extra
        Choice of excess
        coins icon
        $550 - $1,900 (varies By State)
        Agreed or market value
        Car coin icon
        Agreed Or Market

        Available discounts

        • No Claim Discount
        • Online Discount Up To 15%
        Details
      • Comprehensive Car Insurance

        Monthly premiums
        Calendar icon
        Yes Costs Extra
        Choice of repairer
        tools icon
        Optional Extra
        Choice of excess
        coins icon
        $500 - $2,200
        Agreed or market value
        Car coin icon
        Agreed Or Market

        Available discounts

        • Online Discount $75
        Details
      • Seniors Car Insurance

        Monthly premiums
        Calendar icon
        No
        Choice of repairer
        tools icon
        No
        Choice of excess
        coins icon
        $500 - $2,500 (varies By State)
        Agreed or market value
        Car coin icon
        Agreed

        Available discounts

        • Price Beat Offer Available For Eligible Drivers Over 50 Years Old Switching From A Comparable Policy With The Code ‘SENIORS’. T&Cs Apply.

      * 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