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
  • level of cover — comprehensive insurance costs more than third party property only cover
  • agreed value vs market value — it’s typically more expensive to insure your car for an agreed value (which is locked in for the term of the policy) than market value (which can depreciate with each passing month) 
  • insurance excess — the higher your excess, the lower your premium may be, and vice-versa
  • optional extras — the more optional benefits you add to your comprehensive policy, the more you’ll pay.
  • age — young drivers are statistically more likely to have an accident, so they typically pay more
  • gender — whether you’re male or female (in combination with your age) can influence your premium
  • driving experience — the longer you’ve held your drivers licence, the less you’re likely to pay
  • driving record — if you’ve been disqualified from driving or had your licence suspended or cancelled in the past, you’ll probably be charged more (assuming the provider agrees to insure you in the first place)
  • claims history — the fewer claims you and any other listed drivers have made in recent years, the less you’re likely to pay.
  • value — expensive cars cost more to replace
  • performance — expect to pay more if you drive a high-performance car
  • repairs — the easier it is to fix your car and the cheaper the parts, the less you’ll pay 
  • attraction to thieves — if your car is a make and model favoured by thieves, you may pay more 
  • security — if your car features not just an immobiliser but also an alarm and/or satellite tracking, you might get a discount.
Where you live, etc.
  • your postcode — the higher the population density of your local area, for example, the more you’re likely to pay, as there tends to be more claims in densely populated areas
  • where you keep your car — if your car is parked overnight in a garage rather on the street, your premium will normally be lower
  • business use — if your car is used for business (apart from commuting to and from work), you’ll generally pay more 
  • discounts — if you’re eligible for an online discount or no-claim discount, you’ll save.

Compare our car insurance savings

In comparison to their previous insurers’ premiums, customers across Australia who switched to Budget Direct car insurance told us they saved an average of


Use our Comparitron™ tool to compare 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 the prices and features of 47 comprehensive policies offered by 37 insurers, Canstar awarded us one of only two national awards for Outstanding Value Car Insurance in 2019 — a record 13th year in a row we’ve won the award.

We also won Money magazine's Best of the Best 2019 title for Cheapest Car Insurance; and a Mozo Experts Choice 2018 award for Exceptional Value Car Insurance.

To cap it off, the Australian public voted us the Silver Winner in the Car Insurance category of the 2019 Reader’s Digest Quality Service Awards survey.

CANSTAR's Outstanding Value Car Insurance Australia 2007-2019
Money Magazine's Cheapest Car Insurance 2019
Money Magazine's Insurer of the Year 2019
MOZO's Experts Choice 2018 - Exceptional Value Car Insurance
Reader's Digest - Quality Service Award 2019 - Silver

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 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+ 2.
Increase your excess If you’re comprehensively insured and you increase your Basic Excess, we’ll 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 12,000km or less per year, you can take out a ‘low kilometres’ policy, which attracts a lower premium.3
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 matches your needs (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).
Buy home and contents insurance If you have Budget Direct Comprehensive Car Insurance and you switch your home and contents insurance to us, you’ll qualify for a multi-policy discount on the latter when you renew it after the first year.
  1. Online discount. Terms and conditions apply.
  2. The 50+ age bracket applies only to policies purchased after 2 July 2017.
  3. To qualify for our 15% online discount, you must start your car insurance quote online and then call us on 1800 288 149 to request a ‘low kilometres’ policy.

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.

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.

†Figures represent average savings based on data provided to us by new customers who switched online to Budget Direct’s Comprehensive Car Insurance between 01/09/2018 and 28/02/2019. Individual circumstances and policy terms may vary. Please compare for yourself.

Get a car insurance quote online