Cheapest car insurance

Person smiling in older car, with cheap car insurance

Trying to save money? Driving down your daily dollar spend is no easy task, and it doesn’t help that car insurance can be an exxy, albeit necessary, expense.

To help you navigate the financial road ahead, we’ve scoured through the many car insurance companies in Australia to get a fair dinkum overview of the what's on offer. So, follow our tips to secure a top deal that'll suit your needs as a driver. 

Which car insurance will be better for me?

This question is a tough nut to crack, as it really all comes down to who you are and how you use your car. You've got a few options to consider:

Third party car insurance is cheaper when it comes to optional car insurance. However, it may not necessarily give you the cover you need to get from A to B and back again without a worry.

Third party car insurance is limited to covering damage you might cause to another vehicle or property, and is often capped at a set dollar limit (usually between $5,000 and $10,000 unless you elect a greater amount). But it won’t cover damage to your car as a result of an accident.

If you want this as part of this package, you should consider comprehensive car insurance. Depending on which policy you choose, this can cover damage to your own car and others, and could even cover the full cost of replacing your vehicle and others if they’re written off.

Just make sure you check the fine print in the product disclosure statement (PDS) before signing up so you know exactly what you’re paying for first.

And before considering either of these insurance routes, make sure you've organised your compulsory third party insurance (CTP). While costs and some details differ across state borders, this is the kind of car insurance you need to legally drive on Australian roads, and you'll have to take it out when you register your ride. It's there to cover the costs of injuries you might cause or experience while driving and, in the worst case scenario, death.

What car insurance essentials do I need to get me started?

After you’ve done your research and found a car insurance quote to suit your needs, have the following info handy before giving your chosen provider a buzz or applying online.

  • Your driver’s licence number - This shows what kind of licence you hold, which will in turn influence the price you pay for your car insurance. It will also show the insurance company your driving history including offences and any demerit points lost which may also affect the amount you pay.
  • Your age - Under 25? Expect to pay a higher premium for your comprehensive car insurance. But remember, it's still likely better than footing the bill for major repairs to your own and other cars. 
  • The Vehicle Identification Number (VIN) of your car - This will tell the provider who owns the car and whether or not it’s been stolen. The number is usually displayed on a metal plate under the bonnet of your car or more conveniently on your rego papers. If you’ve purchased a second hand car, hopefully you’ve already done the checks on your vehicle before handing over the money. 
  • Your address - The are a huge range of factors that influence car insurance costs, and your postcode is one of them. Why? If where you live has a high crime rate or poor record of road accidents, then you may be more likely to claim on your insurance, and so providers raise premiums to mitigate that risk.
  • The type of car you're insuring - The price you pay for your car is one thing, but the actual street value is another. Value, age and any fancy modifications to your vehicle can impact how much you pay, as these can influence the cost of repairs or replacement. The model of car you drive might also have some bearing. For example, insuring a Mazda might be different to insuring a Mercedes-Benz.

How to avoid costly car insurance traps

Securing affordable car insurance isn't necessarily about going for the bargain basement option. It's more about being aware of various car insurance traps. Knowing these sneaky car insurance facts will make you a more savvy shopper when it comes to researching and buying car insurance.

  • On street parking. If you’re lucky enough to have access to one, then you'll want to start using your garage or off-street parking spot to protect your car and save big bucks. This is because insurance companies consider your car at a lower risk of theft or vandalism if it's parked securely on private property.
  • Late fees. Did you know you can be charged a ridiculous amount for not paying you premium on time? Worse still, your insurance could be cancelled altogether while you're still driving. To avoid unnecessary late fees or the cancellation of your policy, set up a direct debit to pay for your car insurance. 
  • Excess vs premium. By agreeing to pay more on your excess you could save hundreds of dollars in the long run on your premium. Just keep in mind a higher excess generally means you'll have to fork out more cash at claim time before your coverage kicks in. Make sure you've done the calculations and have funds to call on should you need to in the event of an accident. 
  • Shop around. This is probably the most obvious way to save dollars on your car insurance. You’ll be surprised how many car insurance customers purchase the first product they read about. Check out Mozo's car insurance comparison page to kick-start your research journey.
  • Insurance loyalty. If you are happy with your current car insurance provider, you could save cash simply by sticking with them. Many insurance companies offer loyalty discounts that rise alongside the years you hold an insurance policy with them.
  • Apply online. An average savings of 10% or more on your first year's premium is usually offered as an incentive to purchase car insurance online. It’s to reduce insurance company overhead costs while simplifying the application process. 
  • Drive safely. If you can prove you're a reliable driver who doesn't get into accidents or disobey road rules, many providers will offer a discount on your policy. A 'no-claims bonus' or 'safe driver discount' often increases with time if you maintain a clean claims history, and can be transferable between different insurance companies.
  • Multi-car insurance policies. Have more than one car within your household? The more policies connected to yours, the better your overall premium will be if your provider offers a multi-policy discount. Bear in mind, the family members’ vehicles under your car policy forfeit their opportunity to build their own personal credit rating and future no-claim bonus discounts.

Looking for more ways to save on car insurance? Read our detailed car insurance discounts guide.

Compare car insurance - rates updated daily

Search promoted car insurance below. Advertiser disclosure. Important information on terms, conditions and sub-limits.
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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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