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How Millions of Australians Save Up to 50% on Their Car Insurance

5 minute read

By John Warbuck

Changes to the global economy and the proliferation of remote work have encouraged many drivers only to use their vehicles for personal reasons. If you’re not using your vehicle as often, you shouldn’t be required to pay the same rates for auto insurance. This guide reviews insurance options for people who have newer cars, young drivers and seniors who don’t drive as frequently.

Top 10 Best Cheap Comprehensive Car Insurance on the Australian Market

Shopping for car insurance can seem like a chore when there are so many insurance companies to choose from. You don’t need to sacrifice some of the key benefits of comprehensive coverage to get a good deal. The following insurance companies have excellent customer ratings, affordable cover options and low excess requirements. They also have programs that help good drivers save more money over time, protect young drivers on family policies and offer discounts for the first year or when you apply for a policy online.

boonchai wedmakawand / Getty

Virgin Money

Virgin Money1 offers 15% off your first-year premium as long as you purchase your policy online. You can also get up to 15% off in additional savings for maintaining a good driving record without any claims. If you are in an accident that’s not your fault or the victim of auto theft, you receive a $200 daily allowance toward the cost of a rental vehicle and other travel expenses. You can also purchase this type of cover for accidents you’re at fault for.

Budget Direct

Budget Direct2 offers rental coverage for up to 14 days when you’re in an accident that’s not your fault. You also get a new vehicle replacement if you’re in an accident when your car is under two years old and has less than 40,000 km. If you apply for your policy online, you can also get up to 15% off your first year of coverage. The comprehensive cover also pays up to $500 for personal property damage and $1,000 to replace lost keys.

Rollin’ Car Insurance

Rollin’ Car Insurance3 is great for those who want a monthly premium because there’s no penalty for paying for your policy as you go. If you’re insuring a young driver, you’re only required to pay $800 in excess for every driver you insure on a policy. This can reduce your out-of-pocket expenses significantly if your child is in an accident while driving your vehicle. Rollin’ will also replace your vehicle with a new one if it’s totaled with under 15,000 km on it.

Youi Car Insurance

Youi Car Insurance4 has your back when you’re away from home. Emergency roadside assistance comes standard with any policy and if you’re in an accident over 100 km away from home, you can get up to $1,000 for emergency repairs or a rental vehicle. If you total a vehicle that’s under two years old, it’s covered and you can get a new car that’s of similar value to your original one. Youi has flexible coverage options for any budget.

Woolworths Car Insurance

Woolworths Car Insurance5 is an ideal choice for low mileage drivers with the Drive Less, Pay Less option. You pay a significantly lower premium as long as you remain under the distance limit each year. If you apply for a policy online, you can get an additional 15% off your policy. The new-for-old car replacement feature will replace your vehicle with a new one if it’s destroyed in an accident and under two years old.

Stella Comprehensive Car Insurance

Stella Car Insurance6 is suitable for parents with young children because it offers additional cover for child safety equipment and personal property. You can reduce your excess by $100 each year up to $300 total as long as you’re not involved in an accident and the policy includes protection against damages that result from domestic violence. If a current or past romantic partner intentionally damages or destroys your vehicle, you’re covered so long as you file a police report.

Koba Insurance

Koba Insurance7 offers a pay-per-km model that could allow you to only pay $1/day for coverage. You’re given a fixed cost for coverage for each kilometer you drive between 3 – 8 cents. If you drive less than 25 km per day, this means you could easily pay under $30/month. To track your mileage, you need to install a device to your car’s onboard computer. Koba also offers $500 if you’re in an accident over 200 km from home so that you can pay for travel expenses.

Shannons

Shannons8 is one of the few insurance companies that offer comprehensive coverage for vintage and classic vehicles. It’s also a great insurance company for safe drivers because you can save up to 65% on your policy if you remain claim-free. If you’ve been on the no-claims-discount for over three years, getting into an accident won’t cause your rates to go back up. Shannons also offers one excess-free windshield claim per policy renewal period to protect your vehicle from rocks, road debris and weather damage.

GIO

GIO Car Insurance9 is known for excellent customer service and a smooth claims process. You can also add roadside assistance to your policy and enjoy a 10% discount if you purchase your policy online. If you’re in an accident that’s not your fault, you can rent a vehicle for as long as you need while your vehicle’s being repaired and GIO’s got you covered. You do need to obtain the at-fault driver’s information in order to use this benefit.

Huddle

Huddle10 also offers a pay-per-km option that’s great for anyone who doesn’t drive a lot or only uses their car for personal purposes. If you drive under 15,000 km per year, you can save an additional 30% on your premiums. Huddle offers a new car replacement option as long as your vehicle is under two years old and additional cover for personal property and child safety equipment. If you need to file a claim, you can use the 24/7 claim service to initiate your claim from anywhere you have an internet connection.

Best Options for Young Drivers

Younger drivers are usually subject to higher excess due to their increased risk of an accident. It can be difficult to find a policy for younger drivers on their own with low excess limits, but a Rollin’ car insurance policy has an excess limit of $800 for all drivers on a policy. This would ensure that if your child gets into an accident, you’re not going to be on the hook for a large repair bill.

Best Options for Seniors

Seniors can save a lot of money if they’re low mileage drivers or have excellent driving records. Policies that offer savings for not filing a claim over time are an excellent choice, but you can also save money if you sign up for a pay-per-km plan. Huddle and Koba are two insurance providers that specialize in covering people who drive under 15,000 km per year while the 65% good driver discount from Shannons is another way to obtain affordable coverage.

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