Put the brakes on expensive car insurance: Aussies could be bypassing massive annual savings

Aussies could shave up to $696 off their car insurance premiums by shopping around

17 October 2022

  • Drivers under the age of 20 pay the most for car insurance, but switching to a more competitive policy could save them as much as $1,077 
  • Victorians cop the heftiest car insurance premiums in Australia, paying 68% more annually than drivers in the cheapest state, Tasmania
  • In a comparison of 55 providers for the 2022 Mozo Experts Choice Car Insurance Awards, Budget Direct was named Value Car Insurance Provider of the year and GIO Quality Car Insurance Provider of the year

New analysis from financial comparison site has found that Aussies could bypass an average annual savings of up to $696 by not comparing car insurance before purchasing or renewing a policy. 

The analysis was part of the 2022 Mozo Experts Choice Car Insurance Awards and compared 66 policies from 55 providers, finding that the average annual cost of car insurance in Australia is $1,302. 

“Our analysis demonstrates that not all car insurance policies are created equal and there can be a massive price difference between comparable policies. With many households struggling with the rising cost of living, this is a timely reminder that shopping around on personal finance products can be a great opportunity to boost budgets,” says Claire Frawley, Personal Finance and Insurance Expert at Mozo. 

Under 20’s are being hit with the heftiest premiums, fronting up an average annual cost of $2,447, but Mozo’s analysis found they could save up to $1,077 a year by shopping around. 

“Our analysis found that the older the driver, the cheaper the average cost of insurance, which is not surprising as younger drivers are seen as riskier by car insurance providers. The good news is that no matter the age of a driver, there are savings to be had.”

When it comes to who is paying more for car insurance, Mozo found that drivers in Victoria have the most expensive premiums, paying $1,463 a year, which is 68% more than those in the cheapest state, Tasmania, who pay $872 on average.

“Finding cheaper car insurance doesn’t mean drivers should compromise on the quality cover they receive. This is where it pays to read the fine print, looking out for features like roadside assistance, sufficient accident cover and choice of repairer.” 

“Those who don’t want to switch but feel they are being overcharged could find some relief by jumping on the phone to their provider and haggling for a lower price. Comparing policies online to arm themselves with the information they need can help them make their case.”

The 2022 Mozo Expert Choice Car Insurance Awards can be a great tool for Aussies who want to search for the standout policies and providers that outperformed their competitors in delivering great value and quality car insurance. Some of the winners of this year's awards include: 

  • Budget Direct was named Value Car Insurance Provider of the year and GIO Quality Car Insurance Provider of the year
  • ING, Virgin Money and Rollin were all recognised as having Exceptional Value Car Insurance for Young Drivers 
  • Youi was recognised with an Exceptional Value Car Insurance Award

For further information on this year’s award winners visit: Mozo Experts Choice Awards or check out Mozo’s car insurance comparison service.


Notes: Analysis was based on a collection of over 260,633 quotes in September 2022 from 55 car insurance providers and 66 policies. Average savings figures were calculated using the difference between the average and minimum annual costs.