Downsizing car insurance: What are the cheapest cars to insure?

Family buying a car and car insurance.

All manner of things can impact your car insurance, from your driving history to your age and even where you park your car. As you might expect, a big factor is the kind of car you drive.

As the new year approaches, you might want to reassess your car insurance bill. While comparing car insurance policies for the best-value deal can help cut costs, downsizing your car to a more affordable vehicle to run and insure could be amore radical money-saving New Year’s resolution.

When it comes to the car itself, there are a few factors that can push premiums up or down. Let’s investigate them.

Make, model and price

In general, cars that are cheaper to buy are cheaper to insure. This is because repairing or replacing a cheaper car after a claim will cost an insurer less. However, if you’re driving a rust bucket with minimal safety features, this could cost more since safety factors into premiums.

Safety rating

In theory, the safer the car the less likely you are to crash, or if you do crash there’ll be less damage. Many insurers will reference ANCAP safety ratings when setting premiums for different types of cars. While most new cars score pretty high on the chart of 0 to 5 stars, this could be something to consider in the insurance equation if you’re buying an older or used car.

Parts and country of origin

Even if you are changing gears to a cheaper ride, a bargain-basement car might not be the cheapest option to insure. If it’s difficult to source parts, the premium may jump up since repairs could cost more. Where the car is made (its country of origin) could also impact this, as importing car parts can be costly. 

Crash and theft statistics

Stereotypes aren’t always accurate, but they often do factor into car insurance premiums. If you’re trying to insure a car of a particular make or model which is statistically more likely to be stolen or involved in a crash, you can expect a more expensive premium.

Fuel efficiency

If you drive environmentally friendly wheels some insurers may offer a premium reduction for your green habits. This is less about the risk involved in covering the vehicle, and more a means of encouraging sustainability in the industry and providers advertising they support those values.

In considering all these factors, just remember there’s a bundle of other calculations that go into setting premiums, and every insurer can assess them differently. To get a car insurance quote, start by comparing some of the options below then head to the website of policy that suits you.

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Last updated 24 November 2024Important disclosures
Important information on terms, conditions and sub-limits.
  • Comprehensive Car Insurance

    Monthly premiums
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    Yes Costs Extra
    Choice of repairer
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    Optional Extra
    Choice of excess
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    $400 - $2,500
    Agreed or market value
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    Agreed Or Market

    Available discounts

    • Comprehensive Car Insurance

      Monthly premiums
      Calendar icon
      Yes Costs Extra
      Choice of repairer
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      Optional Extra
      Choice of excess
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      $500 - $2,300
      Agreed or market value
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      Agreed Or Market

      Available discounts

      • Online Discount $75
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    • Gold Comprehensive Car Insurance

      Monthly premiums
      Calendar icon
      Yes Costs Extra
      Choice of repairer
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      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 15%
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    • 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

      Available discounts

      • Get 10% Off The Base Premium For The First 2 Consecutive Monthly Policies And Up To A 15% Potential Monthly Discount From Your 3rd Month For Being A Safer Driver. Minimum Premiums May Apply. T&Cs Apply.
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    * 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.

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