Module 7: How to dodge rising car insurance costs

Car insurance is rising faster than the rate of inflation – here's how to avoid soaring costs.

Hey there! To get the most from the Financial Fitness Challenge you need to be a Finder member. It's free and easy to sign up, so do it now!

As part of your 5-minute budget, you already know how much you pay for car insurance.

You may have noticed a big increase in your bill recently. Car insurance has been hit hard by inflation, with premiums shooting up an average of 10.6% in the last 12 months.

And according to the latest Consumer Price Index Indicator, prices rose by a massive 8.2% for all types of insurance combined in the year to March 2024, the fastest rate of any consumer spending category.

It now costs a whopping $1,358 per year for comprehensive cover for the average Australian. You could be paying as much as $2,430 or even higher depending on the insurer, your age and driving history.

The average Australian can potentially save $496* per year on their comprehensive car insurance policy.

How to get cheaper car insurance

Don't simply set and forget or settle for the insurer you've seen the advert for. Compare prices from at least 4 providers.

We researched 33 comprehensive car insurance policies and found a $1,620 difference between the cheapest and most expensive providers. The cheapest policy was $496 less than the average price.

Bingle, ROLLiN', Hume and Budget Direct performed best for price. On average, all cost less than $1,000 a year. Bingle was the cheapest on average. It cost $862 per year, over half the price of the most expensive provider. (To get our average costs we used 60 different customer profiles ranging in age, gender and location.)

1 - 8 of 119
Product FCI Finder Score Roadside Assistance Accidental damage Agreed or Market Value
Finder Score
Agreed or Market
Summary: One of the only insurers to automatically include roadside assistance. It also won 12 out of the 22 categories in Finder's 2024 customer satisfaction awards.

Winner of 12 out of the 22 categories in Finder's 2024 customer satisfaction awards. Yes, that many.
Finder Score
Optional
Agreed or Market
Summary: Coles Comprehensive Car Insurance includes the benefits you’d expect, plus features like grocery replacement (up to $200 if damaged or stolen. T&C’s apply). You’ll also collect 2 Flybuys points for every $1 you spend at Coles when you link your Flybuys (max cap, exclusions and eligible purchases apply).

⭐ Current offer: Save 15% off your first year’s premium when you take out a new Coles Car Insurance policy online. T&Cs apply.

Who it might be good for: Those who want great quality cover and more rewards with Flybuys.
Finder Score
Optional
Agreed or Market
Summary: The 2024 winner of our Best Value Car Insurance award. It's cheaper than most, plus you can lower costs by adding age restrictions.

⭐ Current offer: 15% off your first year's premium when you take out a policy online. T&Cs apply.

Who it might be good for: Anyone who wants a good value policy.
Finder Score
Optional
Agreed or Market
Summary: You need car insurance so why not get one that lets you earn Qantas Points? It's good value too (it's underwritten by the same insurer as Budget Direct).

⭐ Current offer: Earn up to 40,000 Qantas Points with every car insured by 29 January. Plus save 15% on your 1st year’s premium when you purchase online. T&Cs apply.

Who it might be good for: People who want more bang for their buck with Qantas Points.
Finder Score
Agreed
Summary: ALDI's comprehensive insurance policy covers your car for an agreed value and a variety of policy benefits.

Who it might be good for: Ideal for those seeking competitive coverage limits, though other products may have higher limits.
QBE Comprehensive
Green Company
QBE logo
Finder Score
Agreed or Market
Summary: Finder's best-rated Car Insurer for Customer Satisfaction in 2021/2022 and Green Insurer for the last 3 years.

⭐ Current offer: Save $75 when you purchase a new comprehensive policy online. T&Cs apply.

Who it might be good for: Those who want a trustworthy insurer and more cover than other brands, such as 3-year new car replacement (e.g. they'll give you money for a new car for up to 3 years if yours is written off).
Finder Score
Agreed or Market
Summary: This goes further than most insurers. You get up to 2k for stolen keys, roadside assistance and rental car excess cover (for car rentals in Australia).

Who it might be good for: Those who want top cover for their car.
Finder Score
Agreed
Summary: One of the most cost-effective insurers for under 25s, according to Finder research, with no aged-based excess.

⭐ Current offer: Get 10% off the base premium for the first 2 consecutive monthly policies and up to a 15% potential monthly discount from your 3rd month for being a safer driver. Minimum premiums may apply. T&Cs apply. Learn More.

Who it might be good for: Young drivers looking to keep costs down and anyone who’d like to get more flexibility from their car insurance.
loading

Finder Score for car insurance

We analyse over 100 car insurance products and rate each one on price and features. What we get out the other end is a nice round number between 1 and 10 to help you start comparing.

To make sure we're comparing apples with apples, we collect quotes for 8 different personas, then work out the value of 19 different car insurance features. Our team then does some fancy maths to get the Finder Score, taking both price and features into account.

Read the full Finder Score methodology

What should I look out for with car insurance?

There are a few other ways you can lower costs.

  • Choose a higher excess. In return, your insurer will offer you a lower premium. Just make sure you can afford to pay the excess.
  • Restrict drivers. This is a good option if you're over 25. Several insurers will lower your premiums if you restrict your policy to drivers over a certain age. Budget Direct, for example, has the biggest range of any major insurer: 21+, 25+, 30+, 40+ or 50+.
  • Low kilometre benefits. Car insurers including Budget Direct, AAMI and Everyday will lower your premiums if you drive less. There are also some new insurers, such as KOBA that let you pay by kilometre.
  • Review every 12 months. Insurers like to entice us in with sign-up offers and discounts. They can be good for the first year. After 12 months though, they'll often increase your premiums substantially.

Sadly, loyalty usually doesn't pay. Review your policy every year and compare to find a better deal.

*Based on the average cost of comprehensive car insurance of $1,358 and the lowest average policy of $862 across 33 policies.

Module 7 quiz

Gary Ross Hunter's headshot
Editor, Insurance

Gary Ross Hunter was an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146). See full bio

Gary Ross's expertise
Gary Ross has written 645 Finder guides across topics including:
  • Health, home, life, car, pet and travel insurance
  • Managing the cost of living

More guides on Finder

Ask a question

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms Of Service and Finder Group Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Go to site