Cheapest car insurance

By Olivia Gee ·
Person smiling in older car, with cheap car insurance

Trying to save money? Driving down the daily dollar spend is no easy task, and it doesn’t help that car insurance is sometimes an exxy but 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 market. Start comparing below, then follow our tips to secure the best deal. 

Compare cheap car insurance - page last updated September 19, 2020

Search promoted car insurance below. Advertiser disclosure.

  • 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 premiumsCalendar icon
    Yes costs extra
    Choice of repairertools icon
    Optional Extra
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    $500 - $1,850
    Agreed or market valueCar coin icon
    Agreed or Market

    Available discounts

    • No claim discount
    • Online discount up to 15%
      Compare
    Details
  • Comprehensive Car Insurance

    Earn up 20,000 Qantas Points when you sign up for Qantas Car Insurance. Points awarded will be based on your premium. Get a quote to see how quickly the points add up. T&Cs apply.

    Monthly premiumsCalendar icon
    Yes costs extra
    Choice of repairertools icon
    Optional Extra
    Choice of excesscoins icon
    $400 - $1,850 (varies by state)
    Agreed or market valueCar coin icon
    Agreed or Market

    Available discounts

    • No claim discount
      Compare
    Details
  • Comprehensive Car Insurance

    Stella are changing the tune on car insurance, offering car insurance made especially for women. Features include no claim reward, new car replacement, customise your policy and more. Enter your car rego and get a quick quote online.

    Monthly premiumsCalendar icon
    Yes costs extra
    Choice of repairertools icon
    No
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    $800 - $2,000
    Agreed or market valueCar coin icon
    Agreed

    Available discounts

    • No claim discount
      Compare
    Details
  • Price Saver Comprehensive

    Protect your journey with Virgin Car Insurance. Get 15% online discount on Comprehensive cover and receive a $100 e-Gift card* when you purchase a new eligible Virgin Car Insurance policy by 30 September, 2020 (T&C’s apply).

    Monthly premiumsCalendar icon
    Yes costs extra
    Choice of repairertools icon
    Optional Extra
    Choice of excesscoins icon
    $500 - $1,850
    Agreed or market valueCar coin icon
    Agreed or Market

    Available discounts

    • No claim discount
    • Online discount up to 15%
    • Restricted Drivers Discount available
      Compare
    Details
  • Comprehensive Car Insurance

    With many people driving less due to the current COVID-19 crisis, Youi are extending relief, offering new and existing clients a temporary 10% saving on car insurance premiums. Get a quote from the company that puts the people first.

    Monthly premiumsCalendar icon
    Yes costs extra
    Choice of repairertools icon
    Optional Extra
    Choice of excesscoins icon
    $400 - $2,500
    Agreed or market valueCar coin icon
    Agreed or Market

    Available discounts

    • 20% discount on Contents Insurance if Youi Car Insurance also held
      Compare
    Details

Which car insurance will be better for me?

Although basic third party car insurance is the cheaper option, it will not necessarily give you the cover you need to get from A to B and back again without worry or hitch.

Third party car insurance is just limited to covering you for damage you've caused to another vehicle or actual property, but it won’t cover you for damage you’ve caused to your car as a result of an accident if you were the at-fault driver.

Comprehensive on the other hand will cover those cost plus the dollars you would have otherwise had to dish out to repair your car. Depending which policy you choose, it may even be enough to replace your vehicle and others you've damaged in a crash if they’re written off. But check the fine print before signing up so you know exactly what you’re paying for first. You don’t want to be caught out!

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

After you’ve done your research and decided which insurer best suits your needs, have the following info handy before giving your chosen provider a buzz or applying online.

  • Your driver’s licence number - This will determine what kind of licence you hold, which will in turn influence the price you pay for your car insurance. It will also show the insurer 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 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 insurer who owns the car and whether or not it’s been stolen. The number is 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 - Unfortunately there is no one price for car insurance. Not only are the previous factors taken into account, but also the postcode you live in. Why? If it’s registered with a high crime rate then be prepared to pay more.
  • Type of car - 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 will have an impact on how much you pay.

Car Insurance tip 101

Parking your car in a garage will reduce the premium you pay saving you hundreds in the long run - even if your postcode is deemed to be a ‘high risk’ suburb. In the eyes of the insurer there is less of a chance for left or vandalism to your car if it's housed in a lock-up garage.

How to avoid costly car insurance traps

Securing the cheapest 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 - Versus the garage. Sure we’ve talked about it before, but we’ll mention it again. If you’re lucky enough to have access to one, then you'll want to start using it to protect your car and save big bucks. 
  • Late fees - Did you know you can be charged a ridiculous amount for not paying 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. 
  • Increase your excess - By agreeing to pay up to 20% higher or more on your excess could save hundreds of dollars in the long run on your premium. That’s a great way to save money on your monthly outgoings.
  • 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. Here at Mozo, we want to demystify the car insurance process so customers can properly assess their options. Check out our car insurance comparison page to kick-start your research journey.
  • Apply online - An average savings of 10% or more on your first year's premium is usually offered as an incentive to encourage users to purchase car insurance online. It’s to reduce insurers outgoings while simplifying the application process and keeping them more autonomous. 
  • Multi-car insurance policies - Have more than one car within your household? Doesn’t matter if it’s nan, your partner or your teenage kids, because you can add virtually anyone to your policy. Basically, the more policies connected to yours, the sharper your overall premium will be. Don’t forget to ask your family members to transfer the monthly amount into your account! Otherwise, ask your insurer if they can accept payments from multiple sources. 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.

*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).

^See information about the Mozo Experts Choice Car Insurance Awards

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Olivia Gee
Olivia Gee
Money writer

As one of Mozo’s money writers, Olivia Gee shares her research and insights across banking, insurance and property to help readers save. She loves getting stuck into a story, unveiling all the facts, breaking down stats and drawing on personal experiences - this is what drives her as a journalist. She has a double degree from the University of Wollongong, with a BA in Journalism as well as Media and Communications.