What can I expect to pay for car insurance?
Comparison websites sometimes publish average car insurance costs in Australia in a given year. These costs are typically based on the age and/or gender of the driver and the state or territory in which they live.
Average costs are useful, but only to a point. Even within specific demographic groups, costs can vary widely, depending on the driver’s record, the car they drive, the postcode they live in, the type of policy they choose, etc.
Moreover, insurers assess and price risk differently: The premiums they charge the same person can vary by hundreds of dollars.
The most accurate way to price car insurance is to get some quotes. You can then compare these quotes — and, just as importantly, the cover provided — to find the best deal for you.
What affects the cost of car insurance?
There are lots of factors that can influence the cost of car insurance — your premium — including:
| Your policy |
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| Drivers |
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| Car |
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| Where you live, etc. |
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Compare our car insurance savings
In comparison to their previous insurers’ premiums, customers across Australia who switched to Budget Direct Comprehensive Car Insurance told us they saved an average of
$###†
Use our Comparitron™ tool to compare comprehensive car insurance savings reported by our customers throughout Australia.
Car insurance excesses
Aside from the premium, the other car insurance costs you need to be mindful of are any applicable excesses.
A car insurance excess is the fixed amount you pay towards each claim — unless you have a no-fault accident.
Budget Direct policyholders pay a Basic Excess and any other additional excesses that apply.
You can reduce your premium by choosing a higher Basic Excess (and vice-versa); the additional excesses cannot be changed.
Award-Winning Australian car insurance
There’s more to car insurance than cost — you also need to consider the quality of the cover you’re buying.
After comparing over 47,000 quotes, comparing 50 Comprehensive Policies offered by 41 insurance providers, across 42 Consumer profiles, Canstar proclaimed Budget Direct winners of the National Outstanding Value Car Insurance Award for 2023. In the process, Budget Direct became the only brand in any category to win a Canstar National Outstanding Value Award 17 years in a row.
We also won Money magazine's Best of the Best 2024 winner for Best-Value Car Insurance 6 years in a row (2019-24); and a Mozo Experts Choice 2023 award for Exceptional Value Car Insurance.
More ways to save on your car insurance
Depending on the type of Budget Direct car insurance you choose, there are several ways you can reduce your premium even further:
| How to get cheaper car insurance | |
|---|---|
| Select the right level of cover | Do you need comprehensive cover for your car, or would third party property only insurance be enough? |
| Buy your policy online | If you get a quote and buy your policy online, you’ll receive a 15% discount on your first year’s premium.1 |
| Set a driver-age restriction | You could save by restricting your policy to drivers over a certain age: 21+, 25+, 30+, 40+, 50+. |
| Increase your excess | If you’re comprehensively insured and you increase your Basic Excess, we may reduce your premium. |
| Insure your car for its market value | You may want to consider insuring your car for its market value, which is typically less expensive than insuring a car for an agreed value. |
| Get a ‘low kilometres’ policy | If you drive 10,000km or less per year, you can take out a Gold Low Kilometres Comprehensive policy, which attracts a lower premium. |
| Pay your premium annually | By paying annually instead of in instalments (i.e. fortnightly or monthly), you’ll pay a lower premium. |
| Maintain a good driving record | For each year you drive without making a claim, you’ll receive a discount on your premium – until you earn the maximum discount (known as Rating 1). |
| Avoid modifying your car | By not boosting your car’s performance, you’ll escape a possible premium hike. (We do not insure cars with certain modifications. Also, if we insure a car and the policyholder modifies it without our written agreement, the car’s cover can be voided.) |
| Review your cover regularly | Review your insurance regularly to ensure the premium is still competitive and the cover still suits your circumstances (e.g. if your comprehensive policy includes the optional Accident Hire Car benefit, you may decide to remove it if your family buys a second car). |
- Online discount. Terms and conditions apply.
Get a quote online and save 15%^
Get a Budget Direct car insurance quote online — it takes just two minutes. If you buy online, you’ll receive a 15% discount on your new comprehensive or third-party insurance premium.
Useful links
How much does car insurance cost in 2018?
Canstar research that shows new vs old car comprehensive insurance premiums and average car insurance costs by age and state.
Car insurance in 2018: Ultimate buyer’s guide
Mozo research that reveals comprehensive car insurance costs around Australia and the top policies as voted by Mozo’s experts.
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