Switching car insurance in 2021? Here’s 5 insurance options to consider

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By Tara McCabe ·

January has rolled around once again and with it so has a determination to really get a handle on your finances. This time you’ve got a foolproof savings plan, you’ve cancelled lingering subscriptions and you’re working on banishing your credit card debt.

The only snag? You’re still paying a hefty amount in car insurance premiums. Well January is as good a time as any to give your service provider the ol’ heave ho and switch to an insurance policy that won’t burn a hole in your pocket!

Here is a round-up of some insurance providers to consider switching to in the new year.

  • 15% online discount
  • 2020 Mozo Experts Choice Award for Exceptional Value^

According to Budget Direct, Aussies who switched last year saved around $200 on average. The comprehensive policy offers up to $20 million of legal liability, new car replacement and protection against loss or damage to your vehicle following an insured event. There are also a number of ways to reduce your premium with Budget Direct including with a ‘driver age restriction,’ by opting for a ‘low kilometre policy’ or with the ‘no claims discount.’ Plus, it’s worth mentioning that Budget Direct was named Value Insurer of the Year in 2020 in the Mozo Experts Choice Awards!^

  • Earn up to 20,000 Qantas Points upon sign up
  • 24/7 claims service

If you want to take advantage of your switch to build up Qantas rewards points, why not check out Qantas’s Comprehensive Car Insurance. Qantas offers up to 20,000 Qantas Points when you sign up to this policy (depending on how high your premium will be). The policy comes with new for old replacement, $20 million in legal liability and of course cover for loss or damage to your wheels, as the result of an insured event. There’s even a 24/7 claims service, so you won’t be left stranded! You can even save on your premium further by restricting your policy to drivers over a certain age.

  • $75 discount for online applications
  • 2020 Mozo Experts Choice Award winner^

Not only does QBE’s Comprehensive Car Insurance come with a discount off your first year’s premium, but it also scooped up a Mozo Experts Choice Award for Exceptional Value Car Insurance last year! You can snag the $75 discount when you apply for a new policy online. Features of the policy include up to $30 million in legal liability cover, three-year new car replacement, cover for your own wheels from damage caused by an insured event and a guarantee on authorised repairs. You can also increase your cover with optional extras including ‘choice of repairer’ and ‘no-excess’ windscreen cover.

  • Rewards women for being statistically safer drivers
  • Up to $2,000 of baby gear cover

If you’re after something a little more niche, i.e. something that will reward you for being you, you might want to check out Stella’s Comprehensive Car Insurance. Stella is one of the new insurance providers making waves in Australia. Recognising that statistically women are safer drivers. Plus, besides reduced premiums this policy comes with up to $2,000 worth of cover for baby gear, $30 million in third party legal liability and new car replacement. Roadside assistance and ‘no-excess’ windscreen cover are also available as optional extras.

  • 30% temporary premium reduction
  • Works like a monthly subscription - no lock-ins or cancellation fees

Not too keen on being tied down to contracts? If that’s the case, you might want to check out Poncho. Its Comprehensive Car Insurance policy works just like a monthly subscription, meaning there are no lock-ins and no cancellation fees. Some features of the policy include an $800 excess for all listed drivers, up to $20 million of legal liability and new car replacement and windscreen, sunroof or window cover. Poncho is even currently offering a 30% temporary discount to new and existing customers, in response to the effects of Covid-19.

Didn’t find the policy you were after? Why not check out more deals on our compare car insurance page. With so many to choose from, you’ll have your finances in shape in no time!

^The Mozo Experts Choice Awards are carried out yearly to highlight to Australians, leading financial products in the marketplace. Every year our team of data experts collects thousands of quotes and analyses multiple insurance policies to determine the winners. Read more about it in our methodology report for the 2020 Mozo Experts Choice Awards for Car, Home and Landlord Insurance.

*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.

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Tara McCabe
Money writer

Tara McCabe writes across all areas of personal finance here at Mozo from banking through to insurance. Tara is expert at practical money tips, showing readers ways to live richer and be socially conscious while doing it. She earned a BA (Hons) in English Literature from Canterbury Christ Church University.