Cheap car insurance Australia
Looking for cheap car insurance in Australia? The right policy should keep costs down without sacrificing cover. This guide helps you compare options, find great value and lock in a deal that works for you.
How we identified the cheapest car insurance
Every year, our Mozo Experts Choice Car Insurance Awards highlight the best value car insurance policies, in other words, the cheapest options that still provide all the essential features you need.
So, without further delay, let's dive into the winners for best overall value, best value for seniors, best value for young drivers and best value EV insurance.
Best value overall
Important information on terms, conditions and sub-limits.
Budget Direct - Gold Comprehensive Car Insurance**
- 15% discount for combining Home & Contents covers and 15% discount for policies initiated online
- New-for-old replacement
- Mozo Experts Choice Award^ winner, Best Value Overall
Budget Direct shakes up the game with its build-your-own policy approach, making it a wallet-friendly choice for a wide range of customers across all walks of life.
Start with the basic package, which includes new-for-old replacement, essential repairs, accidental damage cover and all the other essentials. Want more? Easily add extras like roadside assistance or excess-free windshield cover.
It's up to you. Keep it simple or build it into something bigger… and pay only for what you need. Plus, by taking advantage of Budget Direct’s generous discounts, you can get your premiums even lower.
Just keep in mind that skipping extras keeps your premium low, but make sure you know what you're giving up before you decide.
Best value, young drivers
Important information on terms, conditions and sub-limits.
ROLLiN' - Comprehensive Car Insurance**
- No additional excess for younger drivers
- Monthly payments you can cancel any time
- Mozo Experts Choice Award^ winner, Best Value Young Drivers
ROLLIN' does a lot to keep premiums reasonable for a group of drivers who often get hit with high rates and extra fees: young drivers. A biggie is their scrapping of the young driver excess, which many insurers charge on top of your normal excess when young drivers are at the wheel during an accident.
Then there’s the Safe n’ Save app, an optional feature that uses tech to analyse your driving habits and reward safe behaviour. Just by opting in, you’ll get 10% off your first two monthly payments regardless of how safe you drive. From then on, safe driving could fetch you 15% off every month (T&Cs apply).
Then there’s ROLLIN's flexibility. You can pay monthly at no extra cost compared to yearly and cancel anytime without penalties - a rarity among insurers.
On the downside, you can’t choose your own repairer, but repairs come with a lifetime guarantee. There’s also no roadside assistance, even as an optional add-on, which might be inconvenient if you’re looking for all-in-one coverage.
At the end of the day, ROLLIN’ keeps things simple, flexible, and cheap - a great choice for young drivers and families.
Best value, seniors
Important information on terms, conditions and sub-limits.
Budget Direct - Gold Comprehensive Car Insurance**
- 15% first-year discount when applying online
- New-for-old replacement
- Mozo Experts Choice Award^ winner, Best Value Seniors
Budget Direct shines again, this time for seniors. Thanks to the build-your-own approach, seniors who want to stretch their dollar and still get all the essentials like essential repairs, accident cover and new for old replacement.
But if you need a little more security like roadside assistance or the ability to choose your own repairer, all you have to do is add it to your policy as an optional extra.
In another nod to seniors, Budget Direct recognises that they tend to be safe drivers and offers discounts for setting a minimum driver age on the policy, with more flexibility in age thresholds than most major insurers.
Just keep in mind that skipping extras keeps costs down, but it's worth checking what you might be missing before making your choice.
Best value EV insurance
Important information on terms, conditions and sub-limits.
NAB Comprehensive Cover**
- New-for-old replacement within two years of original registration.
- A range of discounts available including up to 15% No Claim Bonus, 10% online discount and more (T&Cs apply)
- Flexible excess options and customisable extras, including no-excess windscreen replacements.
NAB’s comprehensive car insurance policy has a lot to offer EV owners. It covers new-for-old replacement if your EV is written off in the first two years with no kilometre limit and includes up to 30 days of rental car cover if you're not at fault, which is on the higher end of what's available.
You can also choose between agreed or market value and pick your own repairer, which is important when EV repair centres around the country are limited. Optional extras let you tailor your cover even further.
NAB comprehensive car insurance also delivers on price for EV owners, which is why it won the 2024 Mozo Experts Choice Award for Exceptional Value EV Insurance.
That said, like most comprehensive policies catering to EVs, this is simply a standard comprehensive policy that happens to cover EVs, so it doesn’t include niche protections like cover for charging stations.
Other cheap car insurance policies
The providers above weren’t the only exceptional value winners at this year's awards. So if you’re looking for affordable car insurance policies in 2024, these could be worth investigating:
|
Australia Post Comprehensive Car Insurance |
NRMA Comprehensive Car Insurance |
|
Bingle Comprehensive Car Insurance |
RAC Comprehensive Car Insurance |
|
ING Comprehensive Car Insurance |
RACT Comprehensive Car Insurance |
|
KOBA Comprehensive Car Insurance |
Real Insurance Comprehensive Car Insurance |
Want something more premium? Read our broader selection of the best car insurance in Australia.
For a full list of winners, head over to the Mozo Experts Choice Car Insurance Awards, then check out the methodology report for all the details on how winners are chosen..
Which is the cheapest car insurance level?
While Compulsory Third Party (CTP) insurance is technically the cheapest, it’s also mandatory and only covers injuries to others.
For vehicle-related coverage, your choices are third-party property (TPP), third-party fire and theft (TPFT), and comprehensive insurance. In absolute terms, for the same driver driving the same car, TPP is cheapest, followed by TPFT, then comprehensive. Here’s how it breaks down:
|
Insurance Type |
Coverage Details |
Cost Level |
Most Cost-Effective For |
| Third-Party Property |
Damage to others' property only |
$ |
Owners of older, low-value vehicles; infrequent drivers |
| Third-Party Fire and Theft |
Damage to others' property, and your car for fire and theft |
$$ |
Drivers of moderately valued cars; those in areas with higher theft or fire risk |
| Comprehensive |
Broad coverage, including your car, others' cars, and additional risks |
$$$ |
Owners of high-value vehicles; frequent drivers; those seeking peace of mind with extensive protection |
Note: Cost estimates are indicative and can vary based on factors like car make and model, driving history, and location. 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.
Understanding car insurance costs: factors that lead to cheaper rates
Understanding car insurance costs: factors that lead to cheaper rates
Working out how you can land cheaper car insurance starts with understanding what exactly influences premiums. Some factors are within your control, and others are not.
These factors fall into three categories:
- Situational factors. These things like your age, gender and location. Some of these are completely out of your hands and others would require major lifestyle changes.
- Behavioural factors. These are based on your driving habits. Think claims history and how much you drive per year. You have a bit of control over these factors, but again, they’d require a longer-term approach and the savings wouldn’t necessarily flow through straight away.
- Policy choices. These are the levers you can pull right away to bring your premium down.
The key factors affecting your premium
To see where you have the most control, here’s a breakdown of what goes into your car insurance costs:
How to find cheap car insurance
Keen to cut down your car insurance bill? We've got you covered. Check out these straightforward tips to potentially nab a lower premium:
- Use your garage. If you've got a garage, use it and tell your insurance company you do. Secured cars are much less likely to get dinged up than those on the streets, especially in congested areas. This can immediately shave some $$ of your premium.
- Up your excess. The choice of excess is like a lever you can pull to adjust your premium up and down. If you can swing a higher excess, do it. Just make sure it's an amount you can handle if you ever need to claim.
- Cash in on being loyal. Been with the same insurer for a while? See if they'll sweeten the deal with loyalty discounts or other benefits. Since competitors can offer sign-up deals, telling your current insurer you’re looking around can convince them to offer you something better.
- Combine and save. Many insurers will offer bundled deals for insuring multiple cars or taking out other policies like home insurance. See if your insurer offers bundled deals, and if not, compare policies that do.
- Mindful driving pays off. Insurers will reward safer driving either directly (through things like the no claims bonus) or indirectly (though normal risk analysis).
- Claim less. Every time your insurer pays out a claim, there’s always a chance your premiums will increase, even if the claim isn’t your fault. So next time you get into a minor bingle consider settling privately, handling repairs yourself, or tolerating small damages if the responsible party isn’t identifiable.
- Install security devices. As with garage parking, insurers like safe cars. Equipping your car with alarms and immobilisers can reduce theft risk and potentially lower your premiums.
- Be selective with drivers. Restrict your car's drivers to those over 25 with a clean record, and list these drivers on your policy. You could be rewarded with lower premiums.
- Pay-as-you-drive. Drive less? Look for pay-as-you-drive policies that let you estimate your yearly mileage. The lower the estimate, the lower your premium. Just don’t lie about how much you drive, as insurance companies have ways to find out.
With these pointers in your pocket, you're all set to chase down those savings on your car insurance. Looking for more ways to save on car insurance? Read our detailed car insurance discounts guide.
How to compare cheap car insurance
Comparing your options to find the cheapest policy isn’t always the best way to save money - since there’s more that goes into cost than the base premium. Here’s what to keep in mind when comparing cheap car insurance policies:
- Needs assessment. The cheapest policy is CTP, but that won’t cover your car or anyone else’s property. That means if you cause an accident, you could be on the hook for much more than what you’d pay for a level of cover that actually suits. So whatever you choose, make sure it matches your needs and risks.
- Excess levels. You can definitely make your premiums cheaper by choosing a higher excess, but what happens if you cause an accident and are forced to pony up $5,000 to help repair the other guy’s car? When comparing options, play around with the excess levels and see what you’re really saving.
- Additional excesses. Many policies include extra excesses based on who’s driving at the time of an accident. Depending on your policy, you could be charged the standard excess plus a young driver, inexperienced driver and/or an unlisted driver excess. These can add up quickly, so check the details when comparing policies.
- Agreed vs market value. Agreed vs market value. Insurers determine your car’s value in two ways: market value, based on its resale price at the time of an accident, or agreed value, a set amount chosen upfront. Cheaper policies often default to market value, which can lower premiums but may also mean a smaller payout if you need to make a claim. Keep this in mind when comparing.
It’s fine to increase your excess or go with market value over agreed value to reduce your premiums, if that’s what works for you. The point is that you need to factor all of this in when comparing policies so that you’re comparing apples to apples and understanding the true cost of each policy.
Cheap car insurance frequently asked questions
What companies have the cheapest car insurance?
There are plenty of cheap car insurance companies to choose from. Based on Mozo research, RoLLiN’, Budget Direct, Australia Post and bingle offer some of the cheapest and best car insurance policies in Australia, on average. In addition to having some of the most affordable policies around, these cheap car insurers consistently score well in the Mozo Car Insurance Experts Choice Awards.
How does your age affect the cost of car insurance?
If you’re under 25, you might notice your car insurance premiums are a bit higher. It's pretty standard, as insurance companies often view younger drivers as having less experience. The good news is, once you hit the 25-year-old mark, you might start seeing those rates drop, all thanks to a bit more experience under your belt.
What is the cheapest car insurance for younger drivers?
Our research shows that RoLLiN’ is a particularly budget-friendly option for younger drivers, in part because it does not include a young driver excess. Virgin Money, Budget Direct and ING’s policies also earn special mention.
Does owning your car outright result in cheaper car insurance?
Owning your car can trim your insurance costs since insurers often see car owners as lower-risk. You also have the freedom to choose less expensive coverage when there's no lender involved. Just remember, your final premium also factors in your car type, driving history, parking habits and more.
What is the cheapest car insurance for seniors?
How much should I pay for car insurance in Australia?
It's pretty common for insurance premiums to vary from driver to driver, but you can still get a sense of whether you're paying too much simply by comparing quotes from different insurance providers. This way, you can check out the average cost and see where your policy stands.
Keep in mind, the cost of your insurance premium can change based on a few factors. For instance, living in bustling cities like Sydney or Melbourne, as opposed to a quiet town in rural NSW, can significantly influence your rates. Where you park your car at night and your driving history are also factors.
So, when you're looking at those quotes, remember they're shaped by these specifics. The full 2024 Mozo Car Insurance report goes in depth on how these factors can affect the cost of your car insurance.
How can I compare cheap car insurance in Australia?
One way to compare cheap car insurance in Australia is to check out the winners of the 2024 Mozo Experts Choice Awards for Car Insurance. For the 2024 awards, our research team reviewed comprehensive car insurance policies for value by reviewing 58 policies from 51 insurance providers. Our awards included Exceptional Value Car Insurance, Exceptional Value Young Driver Insurance and Exceptional Value Senior Driver Insurance.
The Mozo Experts Choice Awards have been going strong since 2014, so our research team has plenty of experience when it comes to analysing PDS documents and crunching numbers. Head to the 2024 Mozo Experts Choice Car Insurance Awards^ page for a full list of the winners and a link to the methodology report.
What if I can't afford car insurance?
Concerned about affording car insurance? Here’s what you need to know: Every driver needs Compulsory Third Party (CTP) insurance as it’s legally required. But if comprehensive car insurance is out of your budget, consider third-party insurance. It's less expensive and covers damage you might cause to other vehicles.
If you're already on a comprehensive plan and the excess for a claim is a stretch, talk to your insurer. Many offer the option to pay the excess in instalments, making it more manageable.
Finding the right balance between cost and coverage is key. Don't hesitate to explore different options or discuss payment plans with your insurer to find a solution that suits your budget.
Will demerit points make my car insurance more expensive?
If you have a lot of demerit points to your name, your insurance premium may end up being more costly. This is because you’re viewed as higher-risk to an insurance provider, and therefore more likely to make a claim. The bread and butter of the insurance biz is NOT paying out claims, so they reward safer drivers because of that.
Will an accident increase my car insurance costs?
In the event of an accident, whether your car insurance premium increases can depend on who's at fault. A one-off accident, particularly if it's not your fault, might not bump up your premium. However, if you're frequently involved in accidents, especially if you're at fault, this could lead to higher premiums over time.
On the flip side, many insurers offer no-claims discounts. If you maintain a safe driving record without any claims for a certain period, you could be rewarded with lower insurance costs. The specifics vary by provider, so it's worth checking their terms and conditions.
* 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.
^See information about the Mozo Experts Choice Car Insurance Awards