How to haggle down your car insurance during lockdown

With many vehicles confined to garages as the need to drive diminishes during COVID-19, your car insurance may also be lying idle. Mozo Director Kristy Lamont says car insurers are undoubtedly seeing a decline in claims and should pass on the savings to customers.
“Car insurance costs have gone down, which in turn means the risk assumptions used to calculate premiums will also change,” Lamont says. “Australian car insurers should not take advantage of this at the expense of their customers. It’s time to reduce their premiums to reflect this.”
And the savings insurers could see is notable: if there’s a 50% drop in motorist claims on the road over three months, APRA estimates the car insurance industry will see a $605 million reduction in costs.
Some insurers are already passing on a portion of the savings. They include major players Suncorp, GIO, AAMI and Apia, which are offering home and motor insurance customers a 20% discount or premium waivers for three months; Youi, offering a 15% a cash-back discount over three months; and QBE with a cash-back gift-card scheme the company says represents around 25% of the average private-use motor insurance policy from April to June.
RELATED ARTICLE: Is it time to consider ‘Pay-As-You-Drive’ car insurance?
Whether your wheels are covered by these companies or not, it’s prime time to drive down your car insurance costs. We know asking for a better deal over the phone or online can go from awkward to excruciating very quickly, so we’re arming you with some hot haggling tips.
Mozo’s tips to reduce your insurance premium
1. Do your research: Get the inside scoop with comparison sites like Mozo. You’ll find insurers commonly offer up to 15% discount to new customers online. Quote these numbers when negotiating and tell your insurer they’ll have to match to retain your business.
2. Acknowledge the current situation: Let your insurer know if you were an active driver and your car is now collecting dust. There’s a damn good reason for your request!
3. Don’t accept the first offer: Providers often lay out a discount straight off the bat - don’t necessarily accept this. It’s likely they can do better, so ask for more.
4. Prepare to bluff: Even if you want to sit tight with your insurer, a potential break-up will get their attention (advice not to be used in human relationships). Tell your provider you’re willing to walk away so they know you’re serious.
Still not feeling confident about your bartering skills? Mozo has put feelers out for you and tested the car insurance waters. In a mystery shop experiment assessing Bupa, CGU, Budget Direct, GIO and NRMA, Mozo found all insurers agreed to discounts on policies when customers cited reduced car use due to the pandemic as the reason for their request. The eight undercover insurance shoppers used Mozo’s tips to drive a hard bargain, and received up to a 20% discount on their policies, amounting to a maximum $300 reduction per year.
RELATED ARTICLE: Coronavirus shutdown: key must-knows relating to income protection and life insurance.
Looking for info about insurance as a renter? Find out if you need it and what's covered in our comprehensive guide to renters' insurance.
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Gold Comprehensive Car Insurance
Get award winning Car Insurance. Save 15% ^ on your first year’s premium when you purchase a new policy online. Budget Direct offers tailor-made cover, new-for-old replacement, 24/7 claims, a highly-rated claims service, and get a hire car following a theft.
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- Optional Extra
- Choice of excess
- $500 - $1,850
- Agreed or market value
- Agreed Or Market
Available discounts
- Online Discount Up To 15%
Gold Comprehensive Car Insurance
Get award winning Car Insurance. Save 15% ^ on your first year’s premium when you purchase a new policy online. Budget Direct offers tailor-made cover, new-for-old replacement, 24/7 claims, a highly-rated claims service, and get a hire car following a theft.
- New car if written off
- Yes - within 2 years or 40,000 kilometres of original registration, whichever comes first
- Rental car after theft
- Yes - Up to 14 days, max $1,000 total.
- Rental car after accident
- Not at fault - Yes. At fault - Optional Extra. Up to 14 days for at fault accidents.
- Windscreen cover
- Yes - standard excess. Option to reduce windscreen excess to $40 on every windscreen claim for an additional premium.
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- $600 for drivers under 21, $500 for drivers under 24, $600 for unlisted drivers, $500 for inexperienced drivers over 24.
- Roadside assistance
- Optional Extra
- Other benefits
- -
- Other restrictions
- -
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.
Read our Mozo Review to learn more about Budget Direct Gold Comprehensive Car Insurance
Comprehensive Car Insurance
Want to save on your car insurance? Qantas Car Insurance has competitively priced cover you can tailor to suit you and your budget. And because it's Qantas Insurance, it’s more rewarding too with up to 20,000 points just for joining. Points based on your premium after 60 days. T&Cs and eligibility apply.
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- Optional Extra
- Choice of excess
- $400 - $1,850 (varies By State)
- Agreed or market value
- Agreed Or Market
Available discounts
- No Claim Discount
Comprehensive Car Insurance
Want to save on your car insurance? Qantas Car Insurance has competitively priced cover you can tailor to suit you and your budget. And because it's Qantas Insurance, it’s more rewarding too with up to 20,000 points just for joining. Points based on your premium after 60 days. T&Cs and eligibility apply.
- New car if written off
- Yes - within 2 years and 40,000 km of original registration
- Rental car after theft
- Yes - Up to 14 days, max $1,000
- Rental car after accident
- Not at fault - Yes. At fault - Optional Extra. Up to 14 days.
- Windscreen cover
- Yes - standard excess. Option to reduce windscreen excess to $40 for an additional premium.
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- $600 for drivers under 21, $500 for drivers aged 21 to 24 inclusive, $600 for unlisted drivers, $500 for inexperienced drivers.
- Roadside assistance
- Optional Extra
- Other benefits
- Earn up to 20,000 Qantas Points when you sign up. Points earned depend on the amount spent on your premium. Points earn thresholds and T&Cs apply.
- Other restrictions
- -
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.
Read our Mozo Review to learn more about Qantas Comprehensive Car Insurance
Comprehensive Car Insurance
Huddle Car Insurance, Pay as you drive & save up to 30% (T&Cs apply). 24/7 claims lodgement and new-for-old replacement (under 2 years).
- Monthly premiums
- Yes
- Choice of repairer
- No
- Choice of excess
- $500 - $5,000
- Agreed or market value
- Agreed Or Market
Available discounts
- Pay As You Drive Cover With Pricing Tiers Available For Limited Kms.
Comprehensive Car Insurance
Huddle Car Insurance, Pay as you drive & save up to 30% (T&Cs apply). 24/7 claims lodgement and new-for-old replacement (under 2 years).
- New car if written off
- Yes - within 2 years of original registration
- Rental car after theft
- Yes - Up to 14 days, max $70 per day.
- Rental car after accident
- Not at fault - Optional Extra. At fault - Optional Extra. Up to 10 days, max $70 per day.
- Windscreen cover
- Yes - standard excess. Option to reduce excess for first windscreen claim each year to $0 for an additional premium.
- Modifications
- Most modifications covered automatically
- Young driver excess imposed
- $1,200 for listed drivers under 21, $800 for listed drivers under 24, $2,000 for unlisted drivers under 21, $1,600 for unlisted drivers under 24, $800 for inexperienced drivers over 24, $800 for learner drivers.
- Roadside assistance
- Optional Service
- Other benefits
- -
- Other restrictions
- -
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.
Read our Mozo Review to learn more about Huddle Comprehensive Car Insurance
Comprehensive Car Insurance
Stella have created a more intuitive experience and offer a product that’s been designed with women in mind; offering premium benefits, and optional extras and rewards for being a safe driver. Stella are backed by QBE. Purchase a new comprehensive car insurance policy from Stella by 31st July 2022 and receive a $100 EGift Card. To redeem enter STELLA100 at checkout. T&Cs apply.
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- No
- Choice of excess
- $800 - $2,000
- Agreed or market value
- Agreed
Available discounts
- No Claim Discount
Comprehensive Car Insurance
Stella have created a more intuitive experience and offer a product that’s been designed with women in mind; offering premium benefits, and optional extras and rewards for being a safe driver. Stella are backed by QBE. Purchase a new comprehensive car insurance policy from Stella by 31st July 2022 and receive a $100 EGift Card. To redeem enter STELLA100 at checkout. T&Cs apply.
- New car if written off
- Yes - within 3 years and 60,000 km of original registration
- Rental car after theft
- Yes - Up to 14 days.
- Rental car after accident
- Not at fault - yes. At fault - Optional Extra. Up to 14 days.
- Windscreen cover
- Yes - standard excess. Option to reduce windscreen excess to $0 on every windscreen claim for an additional premium.
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- $600 for listed drivers under 25. $1,600 for unlisted drivers under 25
- Roadside assistance
- Optional Extra
- Other benefits
- Receive a $100 eGift card for new Comprehensive Car Insurance policies purchased from Stella by 31st July 2022. To redeem enter STELLA100 at checkout.
- Other restrictions
- -
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.
Read our Mozo Review to learn more about Stella Comprehensive Car Insurance
* 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