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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

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.

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.

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
Agreed or Market
Our 2019 Finder Award winner for Best Value Car Insurance.
Qantas Comprehensive
Agreed or Market
Earn up to 20,000 Qantas Points when you sign up. Points awarded will be based on your premium. T&Cs apply.
Youi Comprehensive
Agreed or Market
Emergency roadside assistance included in Comprehensive policies.
Poncho Comprehensive
Temporary 30% reduction in your premium to help ease COVID pressure.
Virgin Comprehensive
Grab a $100 e-Gift card when you purchase a new eligible Virgin Car Insurance policy by 30 September 2020. You’ll also save 15%. T&C's Apply.
Real Comprehensive
Save up to 10% when you buy online.
Kogan Comprehensive
Save up to 10% when you buy online + $50 Credit.
UbiCar Comprehensive
Cheaper comprehensive monthly cover, personalised to how well or how far you drive your car.

Compare up to 4 providers

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:

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

More info

Queensland$560Budget Direct Logo

Get quote

South Australia$583Bingle logo

More info

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

More info

How much does car insurance cost in my state?

Based on our research, car insurance is cheapest in Tasmania, where the average price of a comprehensive 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.

Cost of car insurance by 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.

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.

      The insurers listed above are categorised as cheap car insurers so you may need to check who among them will work best for you. 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,

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