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Some Australians pay thousands of dollars each year for comprehensive car insurance. If you’re on a reduced income, working from home or driving less than usual, this may seem particularly expensive. Here are 10 simple tips that could help you save on your car insurance.
10 ways to save on car insurance
- Buy online
- Choose a higher excess
- Pay annually instead of monthly
- Shop around
- Keep your car secure
- Drive safely
- Drive less
- Consider bundling your policy with other products
- Insure your car for its market value
- Choose your extras carefully
1. Buy online
Many car insurance providers in Australia offer discounts if you buy your insurance online rather than over the phone or in person, as it generally costs them less to sell their policies this way. Some providers offer a fixed dollar discount (such as $100 off), while others offer a percentage discount (such as 10% off your first year’s premium).
Related: Online discounts and sign-up offers for car insurance
2. Choose a higher excess
Your excess is the amount of money you contribute if you need to make a claim. The higher it is, the lower your premiums will generally be. Some providers will let you change your standard excess level to make it higher or lower, while others will let you add a voluntary excess on top of your standard excess. This could further reduce your premiums in exchange for higher out-of-pocket costs when it comes time to make a claim. Increasing your excess won’t be for everyone though, and you should weigh up whether you want to pay a higher excess amount if you do need to make a claim.
3. Pay annually instead of monthly
Some providers charge lower premiums if you pay your insurance annually, rather than in monthly instalments. While this might not be the most straightforward option for those who budget month to month, it could be worth doing if you’re able to afford the one-off payment. Alternatively, you might want to consider going with a provider who lets you pay monthly at no extra cost. According to Canstar’s Research Team, 48% of the providers in Canstar’s 2024 Car Insurance Star Ratings and Awards currently have this option.
4. Shop around
It’s a good idea to compare your car insurance options and see if you could get a better deal. Canstar compares dozens of comprehensive car insurance policies based on both price and features. This can help you get a competitively-priced policy, while ensuring you have cover that suits your needs.
Compare car insurance policies
If you’re comparing car insurance policies, the comparison table below displays some of the policies currently available on Canstar for a 30-39 year old male seeking comprehensive cover in NSW without cover for an extra driver under 25. Please note the table is sorted by Canstar Star Rating (highest to lowest) followed by provider name (alphabetical) and features links direct to the providers’ websites. Consider the Product Disclosure Statement (PDS) and Target Market Determination (TMD), before making a purchase decision. Contact the product issuer directly for a copy of the PDS and TMD. Use Canstar's car insurance comparison selector to view a wider range of policies. Canstar may earn a fee for referrals
5. Keep your car secure
If your car is parked in a garage rather than out on the street, your premiums will typically be lower because providers may see you as less likely to make a claim. You may also get a discount if your car has security features such as an immobiliser, an alarm and/or satellite tracking.
6. Drive safely
While it’s good to be a safe driver regardless, some providers will reward you with a discount for doing so. A number of providers on Canstar’s database offer a ‘Safe Driver Discount’, ‘No Claims Bonus’ or ‘No Claims Discount’. This typically gives you a discount if you don’t claim on your insurance, with the discount increasing each year you don’t claim (up to a limit).
Providers also take into account the drivers listed on your policy and their varying ages and experience levels. Your premiums will often be more expensive if you have multiple drivers or ones that are younger or inexperienced listed on your policy. Limiting the amount of drivers on your policy can often help reduce your overall premiums. That being said, some providers do offer ‘Named Driver’ discounts if you name all the potential drivers of your vehicle on your policy. Be aware that with this discount, in the event that you need to make a claim for an unnamed driver, your excess will often be much higher.
7. Drive less
You could also save by driving your car less. If you drive less than a certain distance per year (usually 10,000 kilometres), some providers will offer you a discount on your premium. Another option could be to choose a ‘pay as you drive’ policy. These policies cover you up to a certain distance and are generally cheaper than regular policies for people who don’t drive often.
8. Consider bundling your policy with other products
Some providers also offer a ‘multi-policy’ discount. This is a discount where you take out two separate types of policies with the one provider. For example, car insurance with home insurance. However, before taking the plunge, it’s important to consider whether you would get better value and/or coverage by splitting up your policies across different providers.
You can compare a range of insurance products with Canstar, such as home insurance, private health insurance and life insurance. Canstar compares and rates policies based on both price and features.
Compare multi-policy discounts for car insurance
9. Insure your car for its market value
You can generally insure your car for either its ‘market value’ or ‘agreed value’. The ‘market value’ is how much your car would be worth on the open market at the time of a car insurance claim. It takes into account factors such as the car’s make, model, condition and mileage, so it can change over time. This is compared to the ‘agreed value’, which is a set value that has been agreed on by you and your insurance provider. It will generally be cheaper to insure your car for its ‘market value’, although it may not provide as much certainty as to how much your car is insured for.
10. Choose your extras carefully
Your premiums will also be more expensive if you add optional extras to your policy, such as windscreen cover, roadside assistance and rental car cover. Consider whether having extras is worthwhile for you. For example, you might want to look at how much it would cost you to buy the add-on coverage separately rather than as part of your policy.
As well as the above tips, it’s also worth asking your insurance provider directly whether they can offer you any additional discounts to help you save. It’s also important to read the policies’ Product Disclosure Statement (PDS) and Target Market Determination (TMD) before making any purchase decisions.
- Save 15%^ on your first year’s premium when you purchase a new Car Insurance policy online.
- 24/7 Phone & Online Claims.
- Budget Direct - Insurance Solved.
- Insurance that's a bit more you-shaped.
- Canstar's 2024 Most Satisfied Customers Car Insurance - National Award.
- Lodge a Claim 24/7 with our Advisors
- Flexible cover before, 24/7 claims after.
- Save $75 on new Comprehensive car insurance online.
- Conditions apply.
- Option To Pay Monthly. Save On Your Premium By
- Increasing Your Basic Excess (Within A Given Range)*
- Lodge A Claim Online 24/7
- No age-based excess.
- No excess on your first covered windscreen repair.
- Canstar 2025 Outstanding Value Car Insurance Award.
Cover image source: Brian A Jackson/Shutterstock.com
