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.
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.)
We currently don't have that product, but here are others to consider:
How we picked theseWe analyse over 30 car insurance products across insurance providers, and rate each one for price and features. We collect up to 36 quotes per product, for male and female drivers in New South Wales, Victoria, Queensland, South Australia, Tasmania and Western Australia. Quotes are collected for 20 year olds, 30 year olds and 60 year olds, assuming an excess of $850 for a 2020 Toyota Corolla 4 door sedan model, with an average 15,000 kms driven each year. We use your responses to our quiz to pair you with the closest price profile and while we are not allowed to display actual quotes, our price score aims to serve as an indicative guide to how cost competitive a product might be for you.
Our feature score assesses each product for more than 15 features across loss and damage coverage, repairs and assistance coverage, personal items coverage and policy coverage. Features we assess include but are not limited to legal liability, essential repairs, new car replacement, car hire events, roadside assistance, agreed or market value, windscreen damage and natural disaster coverage.
Depending on your answers to our car insurance quiz, we upweight the relevant price score or feature score to generate a dynamic Finder Score (80% weighting on the primary selection between Price or Feature). Finder Score, Price Score and Feature Score are only to be used as indicative guides and are not product recommendations.
There are a few other ways you can lower costs.
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.
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