Loyalty and laziness see drivers bypass savings: Loyalty to providers could be costing motorists as much as $303 a year

• Quote data from 35 car insurance providers across 9,503 customer scenarios found an average price difference of $303 a year between quotes for comparable cover 
• 46% of motorists are struggling with the cost of their comprehensive car insurance 
• One-in-three (34%) car insurance customers have always been with the same provider
• 81% think their premiums should be reduced for driving less but almost two thirds (64%) haven’t contacted their provider to ask for a discount 
• Around half (46%) of motorists are driving less than six months ago with the majority in the ACT (67%), NSW (62%) and Victoria (58%) cutting down on their kms 
• Mozo’s Expert Choice Awards identify best value car insurance cover in Australia

Mozo’s latest car insurance report has found loyalty to providers could be costing motorists as much as $303 a year in unnecessary premium payments at a time when nearly half (46%) are struggling with the cost of their cover.

“If you’re struggling with the cost of your car insurance and you haven’t compared policies in the past 12 months, or spoken to your provider about a discount for driving less, you could be missing out on significant savings,” says Mozo spokesperson Tom Godfrey. 

The Pandemic Premiums: Mozo’s Covid Car Insurance Report 2021 has revealed almost half (49%) of car insurance customers surveyed thought there were major price differences on comparable policies, despite this one-in-three (34%) have always been with the same provider.  

“Loyalty can prove costly when it comes to car insurance, so a good option can be to get in the habit of comparing policies each year to help ensure you’re getting the best deal possible,” Godfrey says.

In relation to the impact the pandemic is having on our attitudes and behaviours around car insurance, Mozo found 81% of people think their premiums should be reduced for driving less, yet almost two thirds (64%) haven’t contacted their insurer to ask for a discount. 

“A quick call to your insurance provider to let them know you’ve reduced the distance you’re driving might be all it takes to cut the cost of your premium,” says Godfrey. 

With rolling lockdowns impacting many states and territories, unsurprisingly 46% of people surveyed said they were driving less than six months ago. Mozo found the majority of drivers in the ACT (67%), NSW (62%) and Victoria (58%) have cut down on their kms.

As for how we choose an insurance provider, Mozo found around a quarter (24%) of motorists choose their provider based on a recommendation from family or friends and 23% just rely on brand recognition. 

“With the potential to bank a significant saving on your annual premium by comparing policies and switching to the best deal you can find, relying on word of mouth or brand recognition could prove costly,” says Godfrey.

Mozo’s annual analysis of quote data from 35 car insurance providers across 9,503 customer scenarios for its Experts Choice Car Insurance Awards found significant price variations in what providers can offer, with an average price difference of $303 a year between quotes for comparable cover. 

When it comes to how your location impacts your premium, Mozo’s analysis found average car insurance quotes for motorists in Victoria, NSW and the Northern Territory were significantly higher than average premiums in Western Australia and Tasmania. It also found this year that on average: 

• Under 21s pay the highest average annual premiums ($1,695) 
• Men are quoted $82 more than women, $1,055 compared to $973 
• Black coloured cars ($1,074) are the most expensive to insure, while blue cars the least expensive ($994)

“To help ensure your premium isn’t overheating during the pandemic, it pays to compare quotes and understand the various things that can impact the cost of cover such as where you live, how far you drive, your gender, age and car colour,” says Godfrey. 

Mozo found that Budget Direct, Huddle and Poncho were among the car insurers that offered Australians the best value for their money when it came to their policies.Visit Mozo Experts Choice Car Insurance Awards and the full list of winners

Notes: A nationally representative survey of 1,147 motorists was conducted by Researchify in September 2021. For more on the Mozo Experts Choice Car Insurance Awards and the full list of winners, visit: https://mozo.com.au/expertschoice/car-insurance