Car insurance is one of those unavoidable expenses that can take a serious bite out of your budget. With premiums rising across Australia, knowing how to get cheaper car insurance quotes has become essential for drivers who want solid protection without overpaying. The good news? There are proven strategies that can significantly reduce what you pay each year.
At National Cover, we’ve helped thousands of Australians find competitive motor insurance rates through our price-beat guarantee and data-backed pricing research. We’ve seen firsthand what works, and what doesn’t, when it comes to securing lower premiums. Whether you drive a private vehicle, work in rideshare, or manage a commercial fleet, the principles for saving money remain largely the same.
This guide breaks down 13 practical ways to cut your car insurance costs without sacrificing the coverage you need. From adjusting your excess to bundling policies and improving your risk profile, these tips are based on how insurers actually calculate your premium. Let’s get into it.
1. Use National Cover’s price-beat guarantee
National Cover’s price-beat guarantee offers a direct path to lower premiums by promising to beat any comparable quote from a competitor. This approach removes the guesswork from finding the cheapest rate, as it essentially guarantees you’ll pay less than what you’d find elsewhere. The guarantee works because National Cover uses ASIC-licensed analysts and data-backed pricing research to ensure their quotes are already competitive, then adds the price-beat promise as an extra layer of savings.
How it lowers your premium
The price-beat guarantee cuts your costs by forcing a competitive comparison between National Cover and your existing or alternative quotes. Instead of accepting the first quote you receive, you leverage competition between insurers to drive the price down. This method taps into how insurers structure their pricing, where they often have flexibility to reduce premiums when they know a customer is actively shopping around. By presenting proof of a lower quote, you create negotiating power that translates directly into savings.
When you understand how to get cheaper car insurance quotes through price-beat guarantees, you turn the competitive insurance market to your advantage.
How to do it step by step
Start by gathering at least one alternative quote that covers the same vehicle, drivers, and policy features as what National Cover offers. Make sure the competitor quote is recent, valid, and genuinely comparable in terms of coverage level and excess. Contact National Cover with your existing quote details and ask them to apply their price-beat guarantee. Provide all necessary documentation, including the competitor’s quote document, policy details, and any specific coverage features. National Cover will review the quote and, if it meets their criteria, provide you with a lower premium that beats the competitor’s price.
When it suits you best
This strategy works best when you’ve already received a competitive quote from another established insurer and want to ensure you’re getting the absolute lowest rate available. It suits drivers who have time to shop around and compare multiple insurers before committing. The price-beat guarantee particularly benefits you if you’re renewing your policy or switching insurers, as you’ll have existing quotes to use as leverage. It’s also ideal when you’re confident the coverage you’re comparing is genuinely like-for-like.
Mistakes to avoid
Don’t compare quotes with different coverage levels, as this invalidates the price-beat guarantee and wastes your time. Avoid presenting quotes that exclude key features or have significantly higher excesses, because National Cover will identify these differences during their review. Never assume all quotes are comparable without checking the policy wording and inclusions carefully. Also, don’t wait until your policy expires to start this process, as rushed comparisons often lead to overlooked details that can cost you more in the long run.
2. Compare quotes like-for-like
Comparing insurance quotes without standardising the coverage terms and conditions is one of the most common mistakes that prevents you from finding genuine savings. When you line up multiple quotes with identical policy features, excess amounts, and coverage limits, you create an accurate pricing benchmark that reveals which insurer truly offers the best value. This strategy works because it eliminates variables that distort the comparison and ensures you’re assessing premiums based solely on the insurer’s pricing model rather than differences in what’s actually covered.
How it lowers your premium
Like-for-like comparisons lower your premium by revealing the true cost difference between insurers for identical protection. When you standardise all policy variables, you remove the confusion that allows some insurers to appear cheaper while actually offering less comprehensive coverage. This clarity helps you identify insurers whose pricing models genuinely favour your profile, whether that’s based on your age, location, vehicle type, or claims history.
Accurate like-for-like comparisons expose the real price differences between insurers and prevent you from paying more for less coverage.
How to do it step by step
Write down your exact coverage requirements before requesting any quotes, including the type of cover (comprehensive, third party), your preferred excess amount, and any add-ons you need. Request quotes from multiple insurers using these identical specifications every time. Create a simple spreadsheet listing each insurer’s premium alongside standardised features like excess, market value coverage, windscreen cover, and rental car provisions. Check that each quote includes the same annual kilometre limit and driver details to ensure genuine comparability.
When it suits you best
This approach suits you best when you’re shopping for a new policy or approaching renewal and have time to gather multiple quotes. It particularly benefits drivers with unique circumstances, such as those using vehicles for rideshare or commercial purposes, where policy differences can be substantial. Like-for-like comparison works well when you’ve already determined your minimum coverage needs and want to find the cheapest provider for that specific protection level.
Mistakes to avoid
Don’t accept verbal quotes without getting written confirmation of all policy details, as verbal summaries often miss crucial exclusions or conditions. Avoid comparing quotes with different excess amounts unless you adjust the premiums to reflect this difference, because a lower premium with higher excess isn’t necessarily better value. Never assume that all comprehensive policies cover the same things, as some exclude features like hail damage or flood cover that others include as standard.
3. Get quotes early before renewal
Shopping for insurance quotes four to six weeks before your current policy expires gives you a significant advantage in securing lower premiums. Most insurers release their most competitive rates during this window, as they’re actively competing for business and haven’t yet adjusted their pricing models based on recent market conditions. This timing strategy works because you avoid the panic of last-minute comparisons and create breathing room to negotiate with both your current insurer and potential alternatives.
How it lowers your premium
Early quote shopping reduces your premium by giving you leverage with your existing insurer when you present them with competitive alternatives. Insurers typically offer loyalty renewal discounts only when they know you’re actively considering other options, so approaching them with lower quotes forces them to sharpen their pencil. The early timing also catches insurers during promotional periods where they’re trying to hit monthly sales targets, which can translate into additional discounts that disappear closer to your renewal date.
Getting quotes early transforms you from a rushed buyer into an informed negotiator with multiple options and time on your side.
How to do it step by step
Mark your calendar 30 days before your policy renewal date and start gathering quotes from at least three different insurers. Contact your current insurer first to ask for their best renewal quote, then compare this against alternatives using the like-for-like method. Use these quotes to negotiate with your preferred insurer, whether that’s your current provider or a new one. Lock in your chosen policy at least one week before your renewal date to ensure continuous coverage without any gaps.
When it suits you best
This strategy suits you best when you have a stable insurance history and aren’t facing immediate coverage gaps. Early shopping particularly benefits drivers whose circumstances haven’t changed significantly, as it allows time to explore multiple options without pressure. It works well when you’re happy with your current insurer but want to ensure you’re getting the best possible rate for identical coverage.
Mistakes to avoid
Don’t wait until the week before renewal to start comparing quotes, as this creates time pressure that limits your negotiating power and forces rushed decisions. Avoid accepting automatic renewal quotes without shopping around first, because insurers often inflate these prices knowing many customers won’t bother comparing. Never let your policy lapse while searching for better quotes, as even a single day without cover can increase future premiums significantly.
4. Increase your excess strategically
Your excess is the amount you agree to pay when making a claim, and adjusting this figure strategically can deliver substantial premium savings without exposing you to unmanageable risk. Insurers price policies based on their expected payout costs, so when you accept a higher excess, you’re essentially taking on more of the small-claim risk yourself, which translates directly into lower premiums. The key is finding the balance between meaningful savings and an excess amount you can comfortably afford if an accident occurs.
How it lowers your premium
Raising your excess reduces your premium because it decreases the insurer’s expected claim costs. When you agree to pay the first $1,000 or $1,500 instead of $500, the insurer knows they won’t process as many small claims from you, which are often the most costly to administer relative to their payout value. This risk transfer means they can offer you a cheaper rate while still maintaining their profit margins.
A strategically increased excess transforms how to get cheaper car insurance quotes by shifting minor claim costs to you in exchange for lower annual premiums.
How to do it step by step
Request quotes with multiple excess levels from $500 up to $2,000 in $250 increments. Compare the premium savings at each level and calculate how many claim-free years it would take for the savings to equal the higher excess amount. Choose an excess that delivers at least 10-15% premium reduction while remaining within your emergency savings capacity.
When it suits you best
This strategy suits you best when you have a strong claims history and sufficient savings to cover the higher excess if needed. Increasing your excess works particularly well for experienced drivers who rarely claim and want to maximise their annual savings.
Mistakes to avoid
Never increase your excess beyond what you can afford to pay immediately if an accident happens. Avoid setting different excess amounts across multiple policies without tracking which vehicle has which level, as this creates confusion during claims.
5. Match cover type to your car
Choosing the right level of cover for your vehicle’s age, value, and condition is one of the most direct ways to reduce premiums without compromising necessary protection. Many drivers automatically opt for comprehensive insurance regardless of their car’s worth, which often means paying for protection that exceeds the vehicle’s actual value. Aligning your cover type with your car’s realistic replacement cost ensures you’re not wasting money on excessive coverage while still maintaining adequate protection for your situation.
How it lowers your premium
Matching cover type to vehicle value reduces premiums because older or lower-value cars don’t justify the cost of comprehensive insurance. When your car is worth less than three to four times your annual comprehensive premium, you’re essentially overpaying for protection that won’t deliver value if you need to claim. Third party fire and theft or basic third party cover costs significantly less because insurers carry less risk when they’re not covering your vehicle’s damage.
Understanding how to get cheaper car insurance quotes means recognising when comprehensive cover costs more than your car’s realistic value over several policy years.
How to do it step by step
Check your car’s current market value using online valuation tools or recent sales of similar models. Calculate your annual comprehensive premium and multiply by three to establish a value threshold. Switch to third party fire and theft if your car is worth less than this threshold but you still want theft protection. Move to basic third party property only if your car’s value is minimal and you can afford to replace it yourself.
When it suits you best
This strategy suits you best when you own an older vehicle with declining market value or drive a car worth less than $10,000. Switching cover types works particularly well when your circumstances allow you to self-insure for your own vehicle damage while maintaining legal protection for third party claims.
Mistakes to avoid
Don’t downgrade to third party cover while still financing your vehicle, as lenders typically require comprehensive insurance. Avoid making assumptions about your car’s value without checking recent sale prices for comparable models in similar condition.
6. Choose market value or agreed value
The way insurers value your vehicle for payout purposes directly affects your premium, and choosing between market value and agreed value can mean the difference between overpaying and securing appropriate coverage at a fair price. Market value policies cost less because insurers assess your car’s worth at the time of claim, which introduces some uncertainty but reflects the vehicle’s actual depreciation. Agreed value policies lock in a specific payout amount upfront, providing certainty but costing more because insurers carry additional risk if your car depreciates slower than expected.
How it lowers your premium
Market value cover reduces your premium because it transfers depreciation risk to you rather than the insurer. When you accept that your payout will be based on what your car is worth at claim time, insurers can price this uncertainty into their calculations and offer a lower annual cost. This approach particularly benefits drivers whose vehicles depreciate predictably, as the premium savings often outweigh the minor reduction in payout you might experience compared to agreed value.
Choosing market value over agreed value demonstrates how to get cheaper car insurance quotes by accepting reasonable depreciation risk in exchange for immediate premium savings.
How to do it step by step
Request quotes for both market value and agreed value options from your insurer to see the exact premium difference. Research your vehicle’s typical annual depreciation rate using industry guides or similar model sale prices. Calculate whether the premium savings from market value exceed the potential payout difference over your ownership period. Select market value if your car’s depreciation is stable and the annual savings are substantial.
When it suits you best
This strategy suits you best when you drive a common vehicle model with predictable market values and readily available comparable sales data. Market value works particularly well for cars more than three years old where depreciation has already stabilised and annual value drops are minimal.
Mistakes to avoid
Don’t choose market value for rare or modified vehicles where determining fair market worth becomes subjective and contentious during claims. Avoid agreed value policies on rapidly depreciating cars unless you negotiated a realistic figure, as insurers often inflate agreed values slightly to justify higher premiums.
7. Use low-kilometre or pay-as-you-drive
Distance-based insurance programs offer direct premium reductions for drivers who cover fewer kilometres annually or who are willing to install telematics devices that track actual driving. These policies work because insurers know that less time on the road equals fewer accident opportunities, which translates into lower risk and cheaper premiums. Instead of paying a flat rate that assumes average annual distance, you pay only for the risk you actually create through your specific driving habits.
How it lowers your premium
Low-kilometre and pay-as-you-drive policies reduce your premium by accurately reflecting your road exposure rather than averaging costs across all policyholders. When you declare an annual distance of 10,000 kilometres instead of the standard 15,000, insurers can offer meaningful discounts because their actuarial models show you’re statistically less likely to claim. Some insurers offer up to 20-30% savings for genuinely low-kilometre drivers.
Pay-as-you-drive programs demonstrate how to get cheaper car insurance quotes by linking your premium directly to your actual kilometres driven rather than estimates.
How to do it step by step
Calculate your typical annual distance by checking your odometer readings over the past year or estimating based on daily commutes and regular trips. Contact insurers that offer low-kilometre or pay-as-you-drive programs and ask for quotes based on your actual distance. Install any required telematics device if choosing pay-as-you-drive, ensuring you understand how the tracking and pricing work.
When it suits you best
This strategy suits you best when you genuinely drive less than 12,000 kilometres annually or work from home most days. Low-kilometre policies particularly benefit retirees, second-car owners, or anyone with minimal commuting requirements.
Mistakes to avoid
Never underestimate your annual kilometres to secure a lower quote, as exceeding your declared limit can void claims. Avoid pay-as-you-drive programs if your driving patterns vary significantly throughout the year, as unexpected high-usage periods might result in premium spikes.
8. Protect your no-claim history
Your no-claim bonus represents years of claim-free driving that insurers reward with substantial premium discounts, often reaching 50-65% off base rates after five years. Protecting this history becomes critical because a single at-fault claim can wipe out years of accumulated discounts and increase your premiums for the next three to five years. Smart drivers understand that sometimes paying for minor damage yourself costs less than lodging a claim and losing the no-claim discount that took years to build.
How it lowers your premium
Maintaining an unblemished claims record keeps your premium low because insurers view claim-free drivers as lower risk and reward this status with progressively larger discounts each year. When you protect your no-claim bonus by avoiding claims on minor incidents, you preserve discount percentages that compound over time, resulting in hundreds of dollars in annual savings compared to drivers who claim frequently.
Protecting your no-claim history demonstrates how to get cheaper car insurance quotes by treating your discount as a valuable asset worth preserving through careful claim decisions.
How to do it step by step
Calculate the excess plus premium increase you’ll face if you lodge a claim, then compare this total against the repair cost. Pay for repairs yourself if the damage costs less than your excess plus one year’s additional premium from losing your discount. Consider no-claim protection cover if offered, which allows one claim without affecting your discount status.
When it suits you best
This strategy suits you best when you’ve accumulated several years of no-claim discount and face minor damage that barely exceeds your excess. Protecting your bonus works particularly well when you have emergency savings available to cover small repairs without financial stress.
Mistakes to avoid
Never assume your no-claim bonus transfers automatically between insurers, as different companies calculate and recognise these discounts differently. Avoid lodging claims for damage that costs less than twice your excess, as the long-term premium impact typically exceeds the immediate repair savings.
9. List only the drivers who use the car
Adding unnecessary drivers to your policy inflates your premium because insurers calculate risk based on every person authorised to drive your vehicle. Many policyholders list family members or friends who rarely or never use the car, thinking they’re providing helpful flexibility, when in reality they’re paying for coverage they don’t need. By restricting your policy to only the drivers who actually use the vehicle regularly, you eliminate the additional risk loading that comes with multiple drivers, particularly if some are young, inexperienced, or have poor claims histories.
How it lowers your premium
Limiting your driver list reduces your premium because insurers assess each driver’s individual risk profile and combine these ratings to calculate your total cost. When you remove a high-risk driver such as a teenager or someone with recent claims, you eliminate the premium loading associated with their profile. Even adding a second experienced driver increases costs compared to a single-driver policy, as insurers assume more people driving means more road exposure and accident opportunities.
Restricting your policy to actual users demonstrates how to get cheaper car insurance quotes by removing unnecessary risk factors that insurers price into every premium calculation.
How to do it step by step
Review your current policy to identify all listed drivers and honestly assess how often each person actually drives the vehicle. Remove anyone who hasn’t driven the car in the past six months or who has their own vehicle and insurance. Request a revised quote with the updated driver list and compare the premium reduction against the flexibility you’re giving up. Update your policy immediately if the savings justify the change.
When it suits you best
This strategy suits you best when you have exclusive or primary use of the vehicle and rarely lend it to others. Reducing your driver list works particularly well when you initially added family members for convenience rather than genuine need.
Mistakes to avoid
Never list fewer drivers than actually use the car regularly, as this creates policy misrepresentation that can void claims entirely. Avoid removing drivers without informing them, as someone driving without being listed on your policy faces serious legal and financial consequences if an accident occurs.
10. Garage the car and upgrade security
Where you park your vehicle overnight and what security measures protect it directly impact your insurance premium because insurers know that garaged cars suffer fewer thefts and weather-related damage compared to street-parked vehicles. Installing additional security devices such as alarms, immobilisers, or GPS trackers further reduces your risk profile, which translates into measurable premium savings. These physical modifications demonstrate to insurers that you’re taking active steps to protect your vehicle, making you a lower-risk customer worth rewarding with cheaper rates.
How it lowers your premium
Garaging your car and upgrading security reduces your premium by decreasing the statistical likelihood of theft, vandalism, and storm damage that insurers must factor into pricing. When you park in a locked garage instead of on the street, you eliminate exposure to opportunistic thieves and weather events, which account for a significant portion of comprehensive claims. Security devices add another layer of protection that makes your vehicle less attractive to thieves and easier to recover if stolen, further reducing the insurer’s expected payout costs.
Garaging and security upgrades demonstrate how to get cheaper car insurance quotes by tangibly reducing the theft and damage risks that drive up comprehensive premiums.
How to do it step by step
Contact your insurer to request a quote adjustment based on regular garage parking, providing proof such as property photos or lease agreements showing secure parking availability. Install approved security devices from your insurer’s recommended list, ensuring they meet Australian Standards for vehicle security systems. Submit proof of installation with certification from the installer, then request the security discount be applied to your policy.
When it suits you best
This strategy suits you best when you have access to secure parking that you’re not currently declaring on your policy or when you’re willing to invest in security devices that pay for themselves through premium savings. Garaging particularly benefits owners of high-value or theft-prone vehicles where the premium reduction justifies any parking costs or security equipment expenses.
Mistakes to avoid
Never claim your car is garaged if you only park there occasionally, as inconsistent storage creates policy misrepresentation that can void claims. Avoid installing non-approved security devices without checking whether your insurer recognises them for discount purposes, as some generic systems don’t qualify for premium reductions.
11. Drop add-ons that don’t pay for themselves
Insurance policies come loaded with optional extras that sound appealing but often cost more over time than they deliver in actual value. Rental car cover, roadside assistance, windscreen protection, and loan cover additions each add dollars to your premium, and many drivers pay for these features year after year without ever using them. Stripping away unnecessary add-ons that don’t match your genuine needs creates immediate premium savings without affecting your core vehicle and liability protection.
How it lowers your premium
Removing add-ons reduces your premium because each optional extra carries its own price loading that insurers calculate based on expected usage and claim costs. When you eliminate rental car cover that costs $80 annually but you’ve never claimed in five years, you’ve saved $400 for zero benefit. Most add-ons fail to deliver value unless you use them frequently enough to exceed their cumulative cost.
Dropping unused add-ons demonstrates how to get cheaper car insurance quotes by paying only for protection you actually need rather than features that sound convenient.
How to do it step by step
List every add-on on your current policy and calculate the total annual cost for each feature. Check whether you’ve claimed on any add-on in the past three years, and if not, mark it for removal. Compare the add-on cost against purchasing the same service independently when needed, such as pay-per-use roadside assistance.
When it suits you best
This strategy suits you best when you’ve accumulated multiple add-ons over policy renewals without regularly using them. Removing extras works particularly well when you have alternative coverage through credit cards, motoring clubs, or separate policies.
Mistakes to avoid
Never drop windscreen cover if you drive frequently on gravel roads or behind trucks, as replacement costs often exceed several years of add-on premiums. Avoid removing roadside assistance if your vehicle is older and breakdown-prone without checking independent service costs first.
12. Pay annually to avoid monthly fees
Choosing to pay your insurance premium in a single annual payment instead of monthly instalments eliminates interest charges and administrative fees that insurers typically add to payment plans. Most insurers charge 8-15% in interest and processing fees when you spread payments across the year, which means you’re paying significantly more for the exact same coverage. Switching to annual payment removes these charges entirely, delivering immediate savings without changing any aspect of your actual protection.
How it lowers your premium
Annual payment reduces your total cost because insurers treat monthly plans as short-term credit arrangements that carry interest and processing charges. When you pay upfront, you eliminate the financing component that can add $100-300 annually to your policy depending on your premium size. This approach demonstrates how to get cheaper car insurance quotes by removing unnecessary fees rather than reducing coverage.
Paying annually turns your premium into a straightforward insurance cost rather than a financing arrangement with hidden interest charges.
How to do it step by step
Request quotes showing both annual and monthly payment totals to calculate the exact fee difference. Set aside the full annual amount in a dedicated savings account before your renewal date to ensure funds are available. Switch your payment method to annual when renewing and confirm the insurer has removed all instalment fees from your final invoice.
When it suits you best
This strategy suits you best when you have sufficient savings to cover the full premium upfront without creating financial stress. Annual payment works particularly well for drivers with stable finances who can budget for large yearly expenses.
Mistakes to avoid
Never pay annually if it depletes your emergency fund or forces you to use credit cards, as interest on borrowed money exceeds insurance instalment fees. Avoid assuming all insurers charge the same monthly fees, as comparing total annual costs between insurers remains essential.
13. Bundle policies and ask for discounts
Combining multiple insurance policies with a single insurer unlocks multi-policy discounts that aren’t available when you split coverage across different providers. Many Australians hold car, home, and contents insurance separately without realising that bundling these policies can deliver 10-25% savings on each premium. Beyond bundling, numerous other discounts exist that insurers don’t always advertise, from professional association memberships to clean driving records, which you’ll only receive if you actively ask about them during the quote process.
How it lowers your premium
Bundling reduces your premium because insurers prefer customers with multiple policies who are less likely to switch providers and generate more lifetime revenue. When you consolidate car, home, and contents insurance with one company, they can afford to offer substantial discounts on each policy while still maintaining profitability across your total business. Additional discounts for factors like advanced driver training, vehicle safety features, or membership in professional organisations further decrease costs by demonstrating lower risk profiles that insurers reward with cheaper rates.
Bundling policies demonstrates how to get cheaper car insurance quotes by leveraging your total insurance spending to negotiate better rates across all coverage types.
How to do it step by step
Contact insurers who offer the policy types you currently hold separately and request bundled quotes for all coverage together. Compare the bundled total against your current individual policy costs to calculate actual savings. Ask specifically about every available discount including professional memberships, security features, low claims history, and age-based reductions. Request written confirmation of all applied discounts before finalising the bundled policies.
When it suits you best
This strategy suits you best when you hold multiple insurance policies that you can consolidate with a single provider. Bundling works particularly well when approaching renewal dates across several policies, allowing you to negotiate comprehensively rather than piecemeal.
Mistakes to avoid
Never bundle policies if the combined cost exceeds what you’d pay for best-price individual policies from different insurers. Avoid accepting automatic bundling discounts without verifying they represent genuine savings compared to shopping separately.
Next steps
You now have 13 proven strategies for reducing your car insurance costs without sacrificing the protection you need. The question isn’t whether these methods work – they demonstrably do – but which combination delivers the biggest savings for your specific situation. Start by comparing quotes like-for-like, then layer on tactics like strategically adjusting your excess, bundling policies, and protecting your no-claim bonus to compound your savings year after year.
Understanding how to get cheaper car insurance quotes means taking action well before your next renewal date, not scrambling at the last minute when your options become severely limited. National Cover’s price-beat guarantee and data-backed pricing make it straightforward to secure competitive rates without spending hours on tedious comparison shopping. Get your free quote from National Cover today and discover exactly how much you can save while maintaining comprehensive coverage that protects what matters most.
