Car insurance is one of those bills that only ever seems to move in one direction. Recent consumer research found that Gen Z drivers are now paying an average of $183 a month for cover, $50 more than baby boomers.
The easiest way to cut the price of your policy? Switch to a better deal. But we understand you don't always have the time to sift through policies, which is why we've done the heavy lifting for you.
We compared 40 comprehensive policies on price, features and customer service to find the standouts, whether you want the cheapest cover, the best features or an insurer that actually picks up the phone.
Comprehensive premiums have risen more than 40% since 2019, according to the Insurance Council of Australia. A few things are driving it:
Cars are pricier to fix. Modern vehicles are packed with sensors and cameras, so even a minor bump can mean expensive recalibration. Parts costs have also increased by roughly 26% in five years.
Repairs are taking longer. A shortage of panel beaters and parts delays have pushed average repair times from around 39 days to over 60.
Extreme weather is hammering claims. Floods, storms and hail have driven up claims costs across the country, even in areas that haven't been directly hit.
Reinsurance costs more. Insurers buy their own insurance against catastrophes, and global disasters have pushed that cost up, which can flow through to your premium.
None of this means you have to cop the increase. Because insurers price the same driver very differently, comparing at every renewal is the single most effective way to push back.
Tried and tested tips
"Look around for insurers who offer sign-up discounts – this can be a great way to save! Often, the sign-up discounts will only be available if you're a new customer but that's typically no problem if you're looking at switching providers. Some offer up to 15% off which can help you save around $100 in some cases."
"If you like the look of a specific policy but it's too expensive for you, check who the underwriter is. Brands with shared underwriters have identical policies but some brands are cheaper than others. This means you can enjoy the same policy at a more affordable price point. You can find a policy's underwriter with a simple Google search or look at the product disclosure statement."
"Good to know – if your windscreen is broken and that's the only thing that's been damaged, it's not always worth making an insurance claim. This is because your excess is usually more than the cost of the repairs. To avoid this, lots of insurers let you upgrade your cover to include no-excess windscreen cover. It'll usually cost you a couple more bucks a month which is substantially cheaper than paying for the repairs yourself."
Don't auto-renew without re-quoting. Insurers save their sharpest prices for new customers, and premium increases tend to land hardest on people who renew without asking questions. When your renewal notice arrives, treat it as your opportunity to compare a few quotes.
Don't pay monthly without checking for fees. Some providers charge up to 15% more for the privilege of paying monthly. Over a year, that can add up to hundreds of dollars for exactly the same cover.
Don't overinsure your car. Comprehensive cover isn't mandatory, and if your car's only worth a few thousand dollars, you could be paying more in premiums than you'd ever get back in a claim. Match your cover to what your car is actually worth — more on that below.
Which level of cover do you actually need?
There are 3 main types of car insurance in Australia, and the right one mostly comes down to what your car is worth and whether you could afford to replace it tomorrow.
Third party property damage: Covers damage you cause to other people's cars and property, but nothing for your own car. Best for older cars that aren't worth much, where you'd rather wear the loss than pay for extra cover.
Third party fire and theft: Everything above, plus cover if your own car is stolen or damaged by fire and is usually capped at around $10,000. This is what's considered the "middle ground" for cars worth less than that.
Comprehensive: Covers your car for accidents, fire, theft, storms and more, on top of damage you cause to others. The go-to for newer or higher-value cars, or anyone who couldn't easily afford to replace their car after an accident.
How much are Aussies spending on car insurance?
Every month, we ask hundreds of Australians what they're paying for car insurance. To show you how age impacts the cost of your monthly premium, we've broken these numbers down by generation. Here's what their bill looked like in March 2026.
Baby boomers: $134
Gen X: $124
Gen Y: $175
Gen Z: $183
Price based on 600+ responses about their monthly premium in March 2026.
Frequently asked questions
There is no single best insurer or best policy, as fifferent policies will suit different people. It's more about comparing your options so you can find one which is right for you, at a price you can afford. Our 2026 Finder Awards for car insurance can help take some of the guesswork out of this for you.
According to the 2026 Finder Awards, Budget Direct Comprehensive Insurance offers the best value car insurance and Youi Comprehensive Insurance offers the best insurance for features. However, it's important to note that the criteria used to determine our award winners may be different to your own circumstances. Always read the PDS to understand if the price and features offered are best for your needs.
That'll depend on your personal details, but if you're looking for cheap car insurance options, Budget Direct won the 2026 Finder car insurance award for low cost.
Yes, there are often deals and discounts available for car insurance. Typically, discounts are offered to new or switching customers.
The Big 4 insurance providers in Australia are IAG, Suncorp, QBE and Allianz. Collectively, according to Parliamentary of Australia data, these larger insurers make up approximately 74 per cent of the market.
Based on Finder's monthly survey of hundreds of Australian drivers, the average monthly premium in March 2026 ranged from $124 for Gen X up to $183 for Gen Z. Age is one of the biggest factors in what you'll pay, where younger drivers are statistically more likely to have an accident, so insurers charge them more. Where you live, what you drive and the excess you choose also impact your premium.
It depends on what your car is worth. As a rule of thumb, if your annual comprehensive premium is creeping towards 10% or more of your car's value, it's worth questioning. For a car worth under $10,000, third party fire and theft can cover the big risks for a lot less, and for genuinely old cars, third party property damage may be all you need. The one exception: if you couldn't afford to fix or replace your car after an accident, comprehensive cover can still earn its keep even on a cheaper car.
Ceyda Erem is Finder’s senior writer for insurance and has almost 10 years of experience writing about personal finance. Formerly a copywriter for several business and finance clients, Ceyda has written hundreds of articles, guides, blogs and more to ensure Australians stay in the loop about how to best manage their money. She has a Bachelor of Arts, Majoring in Writing from Macquarie University.
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Peta Taylor is a publisher at Finder, working across all of insurance. She's been analysing product disclosure statements and publishing articles for over 2 years. Peta is passionate about demystifying complex insurance products to help users make well educated decisions with confidence. Peta is part of Finder's insurance awards team and works alongside editorial and insights experts to bring users the best insurance products every year.
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Australian Unity car insurance, underwritten by Allianz, offers two levels of cover, the freedom to choose your own repairer and an easy 24-hour claims service.
With a higher-than-average price but no particularly impressive benefits, Allianz was outperformed by many other car insurers in the 2024 Finder Insurance Awards.
With strong cover and reasonably-priced policies, AAMI performed well in the 2024 Finder Awards. However, some popular benefits are missing and cheaper options are available.
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Youi Comprehensive
Budget Direct Comprehensive
Qantas Comprehensive
Bingle Comprehensive
