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Cheap car insurance

Sick of spending too much? We found an average difference of $2,643 between two car insurance policies. How much could you save?

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Car driving on coastal road

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Feel like you're paying more on your car insurance than you should be? You might be onto something. In our 2019 Finder Awards, we found that one budget car insurer cost an average $682 a year for a comprehensive policy, whilst another reached a huge $3,325 a year! That's a difference of $2,643. Across the board, Budget Direct, Bingle, and Virgin Money were some of the cheaper providers we came across.

This guide shows you how to compare car insurance the right way, so you can get a cheap deal that suits your needs. We'll also share some tips on how to lower your premium, so you've got more money in your pocket, every month.

Must read: Looking for the cheapest car insurance?

There is no single cheap car insurance that suits every driver. Factors that impact your cost include the make and model of your car, your age, your gender, your suburb etc. - and will determine the lowest premium available to you. Keep in mind that we don’t compare every product in the market, but we hope that our tools and information will allow you to compare your options and find the cheapest car insurance for you.

Alexandra Koster Insurance Expert

Finder's Best Value Car Insurance: Budget Direct

We looked at 38 companies, and requested up to 36 different quotes from each, to determine the winner of our Best Value Car Insurance category, for the 2019 Finder Awards.

After all that, Budget Direct came out on top because it has one of the more affordable policies on the market, while still offering comprehensive coverage.

Budget Direct's comprehensive policy boasts flood and storm cover, 24/7 phone assistance, adjustable excess, optional roadside assistance, a hire car, towing costs, and even a hail warning SMS system.

  • 15%
    15% off first year's premium for new policies purchased online. T&Cs apply.
  • 24/7
    24/7 roadside assistance for less than $1.60 a week
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Looking for cheap car insurance? Start here

Name Product Roadside Assistance Accidental Damage Storm Choice of Repairer Agreed or Market Value
Budget Direct Comprehensive
Optional
Optional
Agreed or Market
Finder's summary: Awarded the 2019 Finder Award for the Best Value Car Insurance, this policy offers solid coverage at a low cost. Budget Direct’s claims service has received a 4.2/5 based on nearly 5,000 customer reviews.

Who it might be good for: People who want a comprehensive policy without breaking the bank.
Bingle Comprehensive
Market
Finder's summary: Bingle consistently come up as one of the cheaper insurers out there. They only cover the basics, so you don't get to choose your own repairer, you're not covered for personal items in the car and you won't get a hire car if your car is stolen. But this keeps their premiums low.

Who it might be good for: Someone who wants a low cost option that covers them for the basics.
Youi Comprehensive
Optional
Agreed or Market
Finder's summary: Youi Comprehensive Car Insurance is one of the few providers to include roadside assistance in their policy. You'll also get access to YouiRewards which gives you discounts on furniture, parking and more. Youi also have a live chat feature on their site to talk through any questions.

Who it might be good for: People over 25 who want comprehensive cover with a focus on customer service.
Virgin Comprehensive
Optional
Optional
Agreed or Market
Finder's summary: Finalists for the 2019 Finder Awards for Best Value Car Insurance, Virgin Comprehensive provides a good level of cover for a decent price. You'll get 15% off on your first year’s premium when you buy online and get access to their hail hero service. Plus, get a $100 e-Gift card when you purchase a new policy by 30 November 2020 (T&Cs apply).

Who it might be good for: People who want a comprehensive policy that's affordable.
Qantas Comprehensive
Optional
Optional
Agreed or Market
Finder's summary: You'll be able to pick and choose how comprehensive you want your cover to be thanks to optional extras like roadside assistance, choice of your own repairer, and the option of agreed or market value. Plus, you'll earn Qantas Points when you join and get access to the Qantas Wellness App.

Who it might be good for: People who love collecting frequent flyer points.
Poncho Comprehensive
Agreed
Finder's summary: Poncho works like a monthly subscription - you pay monthly and can cancel and leave at anytime. You can also list multiple cars and drivers under one policy, making it ideal for families and groups living together under one household.

Who it might be good for: People who want their car insurance month-to-month.
Coles Comprehensive
Optional
Agreed or Market
Finder's summary: Coles have two-tiers of comprehensive car insurance to choose from. You'll earn double flybuys points at Coles supermarkets and you can get $10 off your Coles grocery bill every time you redeem 2,000 Flybuys points. If you're over 30, you can get roadside assistance free for a year.

Who it might be good for: Coles customers and Flybuys collectors.
Real Comprehensive
Optional
Agreed or Market
Finder's summary: Real Comprehensive Car Insurance provides similar coverage to other insurers for the important stuff like looking after your car if it's stolen or you crash. They're also one of the few insurers who offer a Pay As You Drive policy, so you might be able to save big if you don't drive much.

Who it might be good for: Those that don't drive much can take advantage of their Pay As You Drive policy.
Stella Comprehensive
Optional
Agreed or Market
Finder's summary: Stella’s a female-focused insurer. They'll cover you if your car is damaged as a result of domestic violence. They offer higher cover for baby gear than most, with up to $2,000 cover for prams, strollers and child seats. You get a free Bauer magazine subscription when you sign up and a portion of your premiums go to supporting female-led businesses.

Who it might be good for: Someone who wants a female-centred car insurance policy (they'll cover men too!).
Kogan Comprehensive
Optional
Agreed or Market
Finder's summary: Kogan comes with all the perks that most comprehensive car insurance policies include but you'll also be entitled to some benefits on their online store. This usually comes in the form of a gift voucher or discount if you buy online. Plus, Kogan offer a pay as you drive option, which could be good if you're not on the road that much.

Who it might be good for: Kogan shoppers and those that don't drive much.
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How can I get the cheapest car insurance?

If you're looking for a car insurance policy which doesn't hurt your pocket, there are a few things you can do to lower your premiums.

  1. Compare online. Don't go with the first policy you find. Shop around, and you could save thousands of dollars on your car insurance.
  2. Restrict drivers. Choosing not to let young drivers behind the wheel of your car can save you big bucks on your car insurance.
  3. Take a higher excess. You'll have to pay more if it ever comes to making a claim, but taking a higher excess will lower your regular premiums.
  4. Pay annually. Some car insurers offer discounts if you're able to pay your annual premium upfront, rather than in monthly instalments.
  5. Keep your car in a garage. Your car is safer if it's kept in a garage, or in an off-street parking spot, so your premium should be less.
  6. Insure multiple vehicles. More than one car in your household? You can get cheaper insurance by bundling your policies.
  7. Insure more than your car. Insurers often offer multi-policy discounts if you bundle different insurance policies together. For example, you might have life insurance or home insurance with the same brand.
  8. Pay-as-you-go. If you don't use your car much, consider a pay-as-you-drive insurance policy. They're a cheaper alternative for people who seldomly use their vehicles.
  9. Look for no claims bonuses. If you're a safe driver, finding an insurer that offers no claims bonuses can make a big difference to your premium. With each year you have a clean claims record, your premiums will be discounted.
  10. Reconsider your loyalty. Some insurers reward loyalty - but it's not always the case. If you've been with your insurer a while, ask for a better price when it comes to renewal time. If the answer is no, compare your options and switch if you find a cheaper policy.

How much does car insurance cost?

That's pretty tricky to say, because there are lots of different factors which influence the price of your car insurance. What car you have, where you keep it, your driving history, and the type of insurance you want are just a few things which can have a big impact on price.

We requested up to 36 quotes from 37 different car insurers as part of the 2019 Finder Awards. Once we averaged everything out, the cheapest provider was $2,643 less than the pricest!

While one budget car insurer cost an average $682 a year for a comprehensive policy, another reached a huge $3,325 a year!

Running a car is expensive enough, without pricey insurance to boot. Thankfully, there are heaps of options out there for budget car insurance, which doesn't break the bank.

What's the cheapest type of car insurance?

Third party car insurance is usually the least expensive option if you're looking for a policy purely based on price. However, you'll get more for your money if you choose more comprehensive cover.

Here's a breakdown of different types of car insurance policies and what they cover you for:

  • Compulsory third party insurance (CTP): This is mandatory car insurance. You can't get your car registered without it. It covers injuries and deaths suffered on the road, but no vehicle damage of any sort.
  • Third party (TP): Third party car insurance covers damage you cause to other cars and property. It doesn't cover any damage to your own car.
  • Third party fire and theft (TPF&T): This type of car insurance typically costs more than just TP, but also covers your own vehicle from damage or loss that is the result of fire or theft, two of the most common vehicle hazards.
  • Comprehensive: The highest level of car insurance. Protects you if you're in an accident, a big storm thrashes your car, or someone bumps your bodywork with their shopping trolley.

Who is the cheapest car insurer?

Based on our research for the 2019 Finder Awards, Bingle provides the cheapest car insurance when the quotes are averaged across all 6 Australian states. However, when you split the quotes individually by states, things change a little.

While Bingle remained the cheapest provider in NSW and South Australia, Budget Direct provided the cheapest quotes for drivers in Queensland, Tasmania and WA. Finally, Virgin Money offered the cheapest quotes for residents of Victoria. To help you decide which policy suits you the most, make sure to read the product disclosure statement (PDS).

StateCheapest quoteBrand
New South Wales$724Bingle logo

Get quote

Queensland$560Budget Direct Logo

Get quote

South Australia$583Bingle logo

Get quote

Tasmania$568Budget Direct Logo

Get quote

Victoria$891Picture not describedVirgin Money Travel Insurance

Get quote

Western Australia$536Budget Direct Logo

Get quote

Overall$682Bingle logo

Get quote

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Receive 15% off car insurance when you purchase cover online.

How much does car insurance cost in my state?

Based on our research, Tasmania has the cheapest car insurance, where the average price of a comprehensive car insurance policy is $1,073 a year. Unfortunately, drivers in Victoria may have to spend a little more, as the average is $1,717 a year in the Garden State.

However, the graph below shows just how much price can vary in each state. If you don't shop around, you could end up paying thousands more than you have to, for a similar level of cover.

Which state has the cheapest car insurance state

How much does car insurance cost for drivers my age?

Your age has a pretty big impact on the price of your car insurance - and it's bad news for the youngsters out there. Insurance companies deem younger drivers higher risk than older drivers, so premiums are usually a bit pricier and making it harder to find cheap car insurance.

How much does third party car insurance cost?

Third party car insurance is the most basic cover you can get - but it's also the cheapest. We requested quotes from 10 companies, and found the average cost of a third party car insurance policy is just $31 a month, or $367 a year.

Remember: Third party car insurance will only cover the cost of damage to someone else's car or property. It won't cover any damage to your car.

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2 Responses

  1. Default Gravatar
    LeonMarch 31, 2019

    Hi sir
    I am looking for cheapest car insurance
    Pls help me about that

    • Avatarfinder Customer Care
      MaiApril 1, 2019Staff

      Hi Leon,

      Thank you for reaching out to Finder.

      I’m afraid we may not be able to identify which of them offers the lowest rate as the insurance premium varies on the details that you will provide as you request for a quote. It may be good to click the Get Quote button above so you can start checking how each insurers charge based on your qualifications and the car that you own. There are also some deals available that you want to take advantage. You can click Get Deal for that.

      Hope this helps.

      Kind Regards,
      Mai

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