How to Get Cheaper Car Insurance in Australia: 12 Tips

If your car insurance renewal made your eyes water, you’re not alone. Premiums have climbed, and many drivers are paying for cover they don’t fully use — from unnecessary add-ons to an agreed value set years ago. Others are being stung by the “loyalty penalty” for auto‑renewing, or by listing too many drivers. The good news: there are clear, legal ways to bring costs down in Australia without gutting your cover.

This guide distils 12 practical, data‑backed tactics to cut your premium and keep sensible protection. We’ll show you how to use a price‑beat specialist to compare and switch, why shopping ahead matters, when paying annually saves, and how to set a higher excess you can actually afford. You’ll learn to choose market vs agreed value smartly, strip out extras you don’t need, limit and name drivers, and unlock low‑kilometre savings. We’ll also cover security upgrades, bundling (when it helps and when it doesn’t), protecting your no‑claims, and picking cars and policy types that cost less to insure. Ready to pay less for the right cover? Let’s start with the quickest win: comparing with a price‑beat specialist.

1. Use a price‑beat specialist to compare and switch (National Cover)

If you’re hunting for how to get cheaper car insurance quickly, start where the biggest wins are: professional comparison with a price‑beat guarantee. Independent reviewers say the golden rule isn’t loyalty, it’s comparison — and a specialist like National Cover combines advanced pricing research with a promise to beat existing quotes.

Why it saves you money

Insurers change rates constantly and often penalise auto‑renewals. A price‑beat specialist actively shops the market and pressures premiums down. National Cover leverages analyst‑backed pricing and will beat written quotes, so you capture current discounts without doing all the legwork. You also get value adds that keep total costs down: expert claims help, lifetime warranty on repairs, replacement cars for not‑at‑fault claims, 24/7 towing, and excess discounts when you use preferred repairers.

How to do it

Start with a like‑for‑like snapshot of your current cover, then let the specialist go to work.

• Collect your details: Excess, drivers and ages, garaging, annual kilometres, usage (private, rideshare, courier, taxi, business), and your renewal price/quote.
• Request a price‑beat: Share any competitor quote. Ask for options on market vs agreed value, low‑kilometre limits, and named‑driver or age‑restricted policies.
• Choose your settings: Pick an excess you can afford and confirm any extras you truly need (windscreen, rental car, roadside).
• Switch cleanly: National Cover can help cancel your old policy and explain any pro‑rata return premium so you don’t pay twice.

Things to consider

Price is only a win if cover still fits.

• Compare apples‑to‑apples: Same excess, drivers, kilometres, and add‑ons.
• Watch first‑year deals: Online discounts often apply once; check the year‑two price.
• Match your usage: Rideshare/taxi/courier/business needs specialised wording — National Cover offers dedicated policies.
• Check the PDS: Ensure key benefits you care about (e.g., repair choice, windscreen, rental car) are included at a fair cost.

2. Shop ahead and don’t auto‑renew

One of the fastest ways to get cheaper car insurance is to avoid the loyalty trap. Independent reviewers consistently note that the golden rule is comparison, not auto‑renewal. Planning a few weeks ahead gives you time to compare properly, capture online sign‑up discounts, and negotiate, instead of accepting whatever renewal lands in your inbox.

Why it saves you money

Insurers reprice constantly and often reserve their sharpest deals for new customers. Shopping around each year — and doing it several weeks before renewal — helps you avoid the loyalty penalty, secure any first‑year online discounts, and fine‑tune settings (excess, drivers, kilometres) that meaningfully reduce your premium. Consumer advocates also show prices vary widely between insurers, so switching can deliver substantial savings.

How to do it

Start early, line up like‑for‑like quotes, and use them as leverage.

• Set a reminder 3–4 weeks before renewal: Give yourself time to compare and negotiate calmly.
• Gather your details: Current excess, drivers and ages, garaging, annual kilometres, usage (private, rideshare, courier, taxi, business).
• Get 3–5 comparable quotes: Include both major and smaller providers; match excess, drivers and add‑ons for an apples‑to‑apples view.
• Ask your current insurer to match or beat: Many will sharpen pricing to retain you.
• Apply online if it’s cheaper: First‑year online discounts are common; confirm what the price is after year one.
• Disclose your current insurer when quoting: CHOICE found some brands quote lower based on who you’re switching from.

Things to consider

Early‑bird shopping only works if you compare on identical settings. Check the PDS to confirm key benefits you care about and watch for discounts that only apply in the first year. If you switch, align start and end dates so there’s no cover gap — and avoid letting an old policy auto‑renew by cancelling once your new cover is active.

3. Pay annually (or pick monthly with no fees)

If cash flow allows, one of the cleanest ways to get cheaper car insurance is how you pay. Many insurers add admin/finance loading to monthly instalments; paying the annual premium upfront often unlocks a lower headline price. If annual is a stretch, target an insurer that genuinely charges no extra for monthly.

Why it saves you money

Independent research shows paying annually can often save around 5–10% versus monthly instalments, while some providers let you pay monthly at no extra cost. Avoiding embedded instalment fees is a quick, no‑compromise win on the same cover.

How to do it

• Compare payment modes: Ask for the total annual price vs the 12× monthly total. Calculate the difference (monthly_total – annual_total) to see the real surcharge.
• Choose “no‑fee” monthly if needed: If there’s truly no uplift for monthly, take the cash‑flow benefit without paying more.
• Stack discounts: Combine annual payment with any first‑year online discount when you switch.
• Plan the cash flow: Set up a sinking fund (e.g., annual_premium / 12 each month) so you can pay annually at the next renewal.
• Pay smart: Avoid putting an annual premium on a credit card you can’t clear interest‑free.

Things to consider

• Verify “no extra cost”: Get confirmation in writing; check for hidden instalment or dishonour fees in the PDS.
• Year‑two pricing: First‑year discounts may drop off — note the renewal price.
• Switching mid‑term: If you might change insurers, ask about any pro‑rata return premium and cancellation fees before choosing annual vs monthly.

4. Choose a higher excess you can afford

Your excess is the amount you chip in when you claim. Across Australian insurers, choosing a higher standard excess generally lowers your premium — but it also means a bigger out‑of‑pocket if you have an at‑fault claim. Done smartly, this is one of the cleanest ways to get cheaper car insurance without stripping back core cover.

Why it saves you money

Insurers reward lower claim costs with lower premiums. A higher excess reduces their risk and your price. It can also deter small claims you could self‑fund, helping protect any no‑claims discounts and keeping future renewals steadier, as consumer advocates note that even “no‑fault” events can nudge premiums up after a claim.

How to do it

Start by finding the sweet spot: a meaningful premium saving for an excess you can comfortably pay tomorrow.

• Get tiered quotes: Ask for the total premium at two or three excess levels (e.g., your current setting, mid, high) on identical cover.
• Run the break‑even math: Use years_to_break_even = extra_excess / annual_premium_saving to see how long you’d need to go claim‑free for the higher excess to win.
• Stress‑test your cash buffer: Only pick an excess you can pay from savings without borrowing.
• Align with your risk: If you rarely claim and drive low kilometres, a higher excess often makes sense; heavy use may call for a moderate setting.
• Consider glass options: Some policies offer separate reduced windscreen excess — useful if you frequently pick up chips.

Things to consider

A lower premium isn’t a win if stacked excesses bite at claim time. Read the PDS and match your situation.

• Stacking excesses: Age/inexperienced and unlisted‑driver excesses can apply on top of your standard excess — important for families and younger drivers.
• Named/age‑restricted policies: Cheaper, but an accident by an unlisted or under‑age driver can trigger a high additional excess.
• Usage matters: Rideshare, taxi, courier and business vehicle policies may have different (or higher) excess rules — choose the right policy type.
• Small‑claim strategy: Higher excess works best if you’re willing to self‑fund minor repairs to preserve discounts and renewal pricing.

5. Insure for market value (or reset your agreed value)

Many Australians quietly overpay because their car is insured for an old, inflated agreed value. Comprehensive policies often let you choose between market value or agreed value — and switching (or resetting) this can be a simple lever to get cheaper car insurance without changing your core cover.

Why it saves you money

Insuring for market value is typically cheaper because the insurer’s liability falls as the car depreciates. If you prefer agreed value, making sure it isn’t set too high also helps — consumer guidance notes that an overstated agreed value can unnecessarily inflate your premium. Reviewing this each renewal can unlock ongoing savings.

How to do it

Start by finding what you’re currently insured for and compare it to realistic values.

• Check your schedule: Confirm if you’re on market or agreed value, and note the dollar amount.
• Benchmark today’s value: Use reputable market value guides to gauge a realistic range for your car’s make, model, condition and kilometres.
• Quote both options: Ask for like‑for‑like quotes (same excess, drivers, add‑ons) for market value vs a sensible agreed value.
• Right‑size agreed value: If you keep agreed value, reset it to a realistic figure to avoid paying for “phantom” value you won’t recover.
• Review yearly: Cars depreciate — revisit your insured value at each renewal to keep premiums aligned.

Things to consider

Market value lowers price but offers less payout certainty at claim time. Agreed value gives certainty but often costs more, so avoid setting it too high. Check your PDS for specifics like new‑car replacement windows (e.g., up to certain months/kilometres) and how accessories/modifications are treated — some policies include these under market value but with limits. Always compare apples‑to‑apples (excess, drivers, extras) when you test pricing.

6. Only pay for extras you actually need

Add‑ons look harmless at checkout, but they’re a common reason premiums creep up. Independent guides are clear: optional extras like windscreen cover, roadside assistance and a rental car add cost, so trimming what you won’t use is a fast way to get cheaper car insurance while keeping core protection.

Why it saves you money

You’re paying for probability. If an extra is rarely used (or duplicated elsewhere), its premium loading is often dead weight. Consumer advice consistently notes that buying only the coverage you need — and avoiding bells and whistles — reduces your price without touching your core comprehensive cover.

How to do it

Audit your policy line‑by‑line and price the add‑ons properly. Ask your insurer or a price‑beat specialist to quote with and without each extra, so you can see the real delta.

• Price each extra separately: Calculate extra_cost = premium_with_extra – premium_without_extra.
• Assess value vs likelihood: Keep extras you’re likely to use or that meaningfully reduce downtime; drop low‑value niceties.
• Compare standalone options: Sometimes roadside assistance or glass cover bought separately is cheaper than bundling in your car policy.

Things to consider

Extras aren’t bad — they just need to earn their keep. Read the PDS for limits, exclusions and how excess applies to each add‑on.

• Windscreen/glass: Know the excess rules and whether repairs vs replacements are treated differently.
• Rental car cover: Check when it applies (theft, not‑at‑fault, at‑fault) and any daily caps or duration limits.
• Roadside assistance: Compare the bundled cost with standalone providers; avoid paying twice for duplicate benefits.

Keep the core cover tight, then add only what you’ll genuinely use at a price that makes sense.

7. Limit and name your drivers (and set a minimum age)

Insurers price in the risk of every person on your policy. The more drivers you list — especially younger or inexperienced ones — the higher your premium tends to be. Tightening who’s covered and setting a minimum driver age is a proven way to get cheaper car insurance without cutting core benefits.

Why it saves you money

Premiums typically rise with multiple or younger drivers on a policy. Many insurers offer named‑driver or age‑restricted discounts if you limit cover to specific people and bar under‑age drivers. Consumer guidance also warns that adding extra drivers pushes up cost, while restricting to named drivers can bring it down.

How to do it

Make deliberate choices about who is allowed behind the wheel and reflect that in your policy.

• List only regular drivers: Remove anyone who no longer needs cover (e.g., adult kids who’ve moved out).
• Use named‑driver settings: Ask for a quote that covers only the drivers you specify — this often attracts a lower premium.
• Set a minimum age: Choose an age‑restricted policy if offered (e.g., “no drivers under X years”) to reduce risk‑loading.
• Add temporarily when needed: If someone outside the list will drive, call your insurer to add them for the period, then remove them.
• Keep records consistent: Ensure all quotes match the same driver list and age rules for a fair price comparison.

Things to consider

Restrictions save money, but they come with rules you must follow at claim time.

• Unlisted/age excesses: If an unlisted or under‑age driver crashes, a higher additional excess can apply — sometimes substantial.
• Learners and P‑platers: Check how your PDS treats inexperienced drivers; stacked excesses may apply on top of your standard excess.
• Usage types: Rideshare, taxi, courier and business policies have specific wording on authorised drivers — match the policy to your use.
• Enforce the rules: If friends or family occasionally borrow the car, make sure your driver limits won’t invalidate cover.

Ask a specialist to price both “any driver” and named/age‑restricted options; picking the tighter setting that still fits your life can trim meaningful dollars from your premium.

8. Drive less: low‑kilometre or pay‑as‑you‑drive

If your car spends more time parked than on the road, this is one of the easiest ways to get cheaper car insurance. Several Australian insurers offer low‑kilometre discounts if you drive under a set cap (often around 10,000 km a year), and “pay‑as‑you‑drive” (PAYD) policies that cover you up to a purchased distance. Consumer guides note these can be cheaper for light‑use drivers, though not always — so compare.

Why it saves you money

Insurers price risk by exposure. Fewer kilometres usually means fewer chances to crash, so premiums can fall. Some providers also recognise lower risk if you avoid peak‑hour commuting. Independent sources caution that PAYD/low‑km isn’t automatically cheapest; it pays when your annual kilometres are genuinely low and predictable.

How to do it

• Know your number: Check last year’s odometer change to estimate annual kms (commute + weekend + trips).
• Get like‑for‑like quotes: Ask for standard, low‑kilometre, and PAYD options with the same excess, drivers and add‑ons.
• Document usage: Provide an odometer photo at policy start and renewal if asked; note your daily/weekly routines.
• Pick a sensible cap: Choose a band you won’t breach; if you’re close, PAYD “top‑ups” can keep you covered.
• Stack with other savings: Combine low‑km settings with named drivers, secure parking, and annual payment where it makes sense.
• Ask a specialist: A price‑beat broker can find brands that actively discount low mileage.

Things to consider

• Not always cheaper: If your driving spikes or sits near the cap, a standard policy may price better.
• Exceeding your limit: PAYD/low‑km products require you to top up or notify increases — check the PDS for how claims work if you’re over.
• Proof of distance: Be ready for odometer checks; keep clear records.
• Usage type matters: Rideshare/taxi/courier/business use often isn’t suited to low‑km or PAYD; choose the correct policy class.
• Honesty is essential: Understating kilometres risks claim headaches; estimate conservatively if your plans may change.

9. Park securely and add anti‑theft tech

Where your car sleeps and how hard it is to steal both affect what you pay. Consumer sources note insurers typically price lower if your vehicle is garaged or in secure parking, and some offer discounts for immobilisers, alarms or tracking. Even when there’s no explicit discount, fewer theft/vandalism claims keeps your long‑term costs down.

Why it saves you money

Insurers assess risk. A locked garage, secure carpark or well‑lit off‑street spot reduces theft and accidental damage, so your premium can fall. Adding security hardware — immobiliser, alarm, steering‑wheel lock or GPS tracking — lowers the likelihood (and cost) of claims, which some providers recognise with cheaper rates.

How to do it

Start by locking in genuine day‑to‑day security, then tell your insurer so it’s priced in.

• Garaging: Park in a locked garage or secure off‑street space where possible; update your policy address/parking details if this changes.
• Anti‑theft devices: Fit an immobiliser and alarm; add a visible deterrent (steering‑wheel or pedal lock). Consider GPS tracking for quick recovery.
• Harden the target: Etch the VIN, use wheel‑lock nuts and protect the OBD port; keep keys away from doors/windows.
• Prove and ask: Keep receipts/photos of security devices and ask your insurer or specialist for any security‑based discount.

Things to consider

Discounts for security vary by insurer, and some don’t offer explicit reductions — but lower risk still benefits your renewal pricing. Never misstate where you park; non‑disclosure risks claim issues. Check your PDS for any requirements on approved devices and disclose modifications. Commercial uses (rideshare, taxi, courier, business) may have different garaging rules — match the policy to your use.

10. Bundle smartly: multi‑policy or multi‑vehicle

Bundling can be a tidy way to get cheaper car insurance — many insurers offer discounts if you hold multiple policies with them, and some will reduce the price when you insure more than one car on the same account. But consumer advice is clear: don’t assume a bundle is best value; always compare the combined bundle price with the best separate deals.

Why it saves you money

Providers often offer a “multi‑policy” discount for combining car with home or contents, and a “multi‑vehicle” discount when several cars are insured under one household. That’s recognised across independent guides, with the caveat that splitting policies across different brands can sometimes beat a bundle. For businesses, consolidating vehicle cover under the right commercial policy also simplifies admin.

How to do it

Start with a clean comparison between bundled and split options.

• List what you can bundle: Car(s), home, contents — plus any second car or ute.
• Quote both ways: Get like‑for‑like prices (same excess, drivers, add‑ons) for a bundle vs the cheapest stand‑alone policies.
• Ask about multi‑vehicle: Price one policy covering all household vehicles and compare against separate policies.
• Use a price‑beat specialist: Have National Cover test bundle savings versus cherry‑picking the lowest individual policies.
• Align renewals: If you bundle, sync start dates to keep discounts active and admin simple.

Things to consider

Bundling helps only if the total cost is lower and cover quality stays high.

• Beware first‑year bait: Some discounts are intro‑only — check year‑two pricing.
• Check the PDSs: Ensure key benefits (repair choice, glass, rental car) aren’t worse in the bundle.
• Driver rules still apply: Named/age limits and extra excesses can stack across bundled or multi‑vehicle policies.
• Match usage to policy: Rideshare, taxi, courier or business use needs specialised wording — don’t “hide” it inside a bundle.

11. Protect your no‑claims: be strategic about claims

Your claims history is one of the biggest levers on price. Consumer guides note insurers reward clean records with no‑claims/safe‑driver discounts that grow over time, while even “no‑fault” events can lift your renewal. Learning when to claim — and when to self‑fund — helps keep those discounts intact and your premium lower.

Why it saves you money

• No‑claims discounts compound: Many insurers offer escalating safe‑driver/no‑claims discounts up to a preset cap. Fewer claims preserves that saving.
• Claims can raise renewals: Independent advice shows premiums often rise after a claim, even for events outside your control. Avoiding minor claims can prevent multi‑year cost creep.

How to do it

Start by setting a sensible threshold and use quick maths before you claim.

• Use a simple test: Get a repair quote, then compare out_of_pocket_if_self_fund vs excess + likely_premium_increase. If the gap is small, paying yourself can be cheaper over 1–2 renewals.
• Price glass separately: Some policies offer a reduced or separate windscreen excess; small chip repairs may be low/no excess — ask first.
• Reserve claims for big hits: Major collisions, theft, fire, hail, flood or expensive third‑party damage usually warrant a claim.
• Document and ask: Call your insurer (or a specialist) to confirm how a claim would affect your discount before lodging.
• Get help when not at fault: If another driver is clearly at fault, a specialist like National Cover can assist with claims handling and a replacement car on eligible not‑at‑fault claims — keeping you moving without unnecessary cost.

Things to consider

• Policy rules vary: How claims affect your discount differs by insurer; confirm before you lodge.
• Excess stacking: Age/unlisted‑driver excesses may add to your standard excess — know your total exposure before claiming small scrapes.
• Timing matters: Lodging multiple small claims in a short period can amplify renewal increases.
• Keep evidence: Photos, quotes and incident details help resolve liability and avoid longer, costlier disputes.

Being selective with small losses and decisive on big ones is the simplest way to preserve your no‑claims benefits — and your premium.

12. Pick a cheaper‑to‑insure car and the right policy type

Two choices shape your premium more than most: the car you drive and the policy type you buy. Insurers price cars on risk and repair cost — models that are easy to fix and source parts for tend to be cheaper to insure, while some “cheap” cars can be pricey to repair. Then there’s coverage: comprehensive is broadest (and usually priciest); pared‑back policies can be a sensible way to get cheaper car insurance on lower‑value vehicles.

Why it saves you money

Premiums reflect a car’s market value, repairability and risk profile. Choosing a model with readily available parts and solid security lowers expected claim costs. Matching cover to the car’s value also trims waste: third‑party options are cheaper than comprehensive, while comprehensive adds theft, vandalism and storm protection at a higher price.

How to do it

• Test premiums before you buy: Get quotes on your shortlist models with the same excess, drivers and parking. Favour cars with lower quotes and easy parts supply.
• Match policy to value/needs:
  • CTP (mandatory): Covers injuries to other people only.
  • TPPD: Covers damage you cause to other people’s property; not your car.
  • TPFT: TPPD plus your car for fire and theft (limits apply).
  • Comprehensive: Your car and others’ property, plus theft/vandalism/storm/hail.
• Align to usage: If you do rideshare, taxi, courier or business driving, pick a specialised policy that explicitly covers that use.
• Re‑quote yearly: As your car depreciates, revisit the policy type and insured value to avoid overpaying.

Things to consider

• Don’t under‑insure: Cheaper cover can cost more after an accident if it doesn’t protect what matters.
• Read the PDS: Check limits/exclusions (e.g., accessories, glass, rental car) before switching types.
• Usage disclosure: Misstating commercial/rideshare use risks claim issues — choose the correct class.
• Repair costs vary: A low purchase price doesn’t guarantee low premiums if parts or panels are costly.

Make your premium work harder

You don’t have to live with an overpriced renewal. The 12 tactics above give you levers you can pull today — compare and switch, pay annually, set a sensible excess, strip extras, restrict drivers, embrace low‑kilometre or PAYD where it fits, secure your car, bundle only when it truly saves, protect your no‑claims, and match cover to the car’s value and your actual use.

Want help turning those levers into real dollars? Get a like‑for‑like, apples‑to‑apples quote with a price‑beat promise, plus expert claims support, lifetime repair warranty, not‑at‑fault replacement cars and 24/7 towing. Make your next policy cheaper without sacrificing protection. Start with a fast price‑beat quote from National Cover.