If your renewal email made your eyes water, you’re not imagining it. Car insurance premiums have jumped across Australia, and many drivers are paying a “loyalty penalty” for auto-renewing. Prices vary wildly between insurers, and it’s easy to be charged for cover you don’t need or miss out on discounts you’re eligible for. Whether you’re insuring the family hatchback, a work ute or a rideshare vehicle, a few smart moves can trim your premium without gutting your protection.
This guide breaks down five expert tactics that actually move the needle on cost. You’ll learn how to switch to a cheaper provider (and use a price‑beat to your advantage), right‑size your cover, car value and excess, pay less by driving less and limiting who drives, stack discounts and time your renewal, and keep your details and risk profile optimised. For each tactic we’ll cover why it saves, step‑by‑step actions, common gotchas, estimated savings, and who it’s best for. Everything here is tailored to Australian policies and conditions, so you can make confident changes today and see the savings at your next renewal. Let’s get started.
1. Switch to a cheaper provider with a price-beat guarantee (National Cover)
If you’re serious about how to save on car insurance, start here. CHOICE reports a clear “loyalty penalty”: the average premium for the most expensive policy is more than double the cheapest in every state, so switching is often the fastest win. National Cover adds a price-beat guarantee on top of already data-backed pricing, so you don’t just switch—you undercut your best quote.
Why it saves
Premiums vary widely between insurers and between new vs renewing customers. Recent scrutiny of complex pricing practices has shown “loyalty discounts” don’t always deliver. By shopping around and then leveraging a price-beat, you capture the spread between high and low premiums and lock in an even sharper rate—without sacrificing cover.
How to do it
Start by matching like-for-like cover so you’re comparing apples with apples.
- Gather your current details: drivers, address, parking, annual kilometres, car value, excess, and optional extras.
- Get 3–5 quotes at the same excess. Ask about low‑kilometre, nominated‑driver, multi‑policy and annual‑payment discounts.
- Take your best written/screenshot quote to National Cover and request a price‑beat. Ask them to match or improve key benefits (lifetime repair warranty, not‑at‑fault replacement car, 24/7 towing, excess discount with preferred repairers).
- If you’re mid‑term, ask National Cover to calculate your return premium and help you switch cleanly.
What to watch out for
Comparison sites don’t show every option, and results can be influenced commercially. Ensure quotes use the same excess, agreed vs market value, and driver limits; a lower premium with a much higher excess isn’t a true saving. Check if “online” discounts are first‑year only, whether monthly instalments cost more than annual payment, and if low‑kilometre caps fit your actual driving.
Estimated savings
CHOICE’s analysis of 233,296 quotes (July 2025) found big gaps between cheapest and most expensive averages—for example NSW ($1,207–$2,497) and Victoria ($1,051–$2,663). Switching from a costly policy to a cheaper one can save hundreds—often $1,000+ a year—before any price‑beat trims extra dollars.
Best for
- Drivers hit by steep renewals or “loyalty penalty”
- Households willing to switch for better value
- Rideshare, taxi, courier and business vehicles needing specialist cover and strong claims support
- Anyone who values extras like lifetime repair warranty, not‑at‑fault replacement car and 24/7 towing
2. Right-size your cover, car value and excess
One of the fastest ways to save on car insurance is to stop paying for protection you don’t need and set the costs you can comfortably carry yourself. That means picking the right policy type, choosing how your car is valued, and setting a sensible excess so you’re not over-insured on small stuff or under-protected on the big hits.
Why it saves
Your premium is driven by the cover level (third party vs comprehensive), the sum insured (agreed vs market value) and your excess. Moneysmart confirms third party property is the cheapest option if your car isn’t worth much, while comprehensive can save you from big repair bills if you can’t afford them. CHOICE also notes a higher excess lowers your premium and can help you avoid future hikes by not claiming minor repairs.
How to do it
Start by matching your cover to your car’s value and your cash buffer.
- Pick the right cover:
- Third party property if your car’s low value and you can live without it.
- Third party, fire and theft if you park on the street and theft risk matters.
- Comprehensive if you can’t afford repairs to your car or others’.
- Choose how it’s valued:
- Market value can mean a lower premium but less certainty at claim time.
- Agreed value gives a fixed payout but usually costs more.
- Set a higher voluntary excess (if you can): Pay less upfront and self-insure small dings. Ensure the excess aligns with what you can pay in cash.
- Tidy add-ons and drivers: Only pay for options you’ll use. List regular drivers and consider nominated/age limits if they suit your household.
What to watch out for
Right-sizing shouldn’t create nasty surprises later.
- Stacked excesses: Age/unlisted-driver excesses can apply on top of your basic excess.
- Not-at-fault excess rules: Some insurers still charge an excess; Moneysmart says to check.
- Underinsurance risk: Market value fluctuates; make sure it reflects your car’s true condition.
- Cover gaps: Dropping from comprehensive means your own car’s damage may not be covered.
Estimated savings
Savings vary by insurer and state, but shifting from comprehensive to a lower tier can be substantial for older, low-value cars. Even within comprehensive, moving to market value and increasing your voluntary excess typically reduces premiums, and avoiding small claims may help keep future renewals lower.
Best for
- Older/low-value cars where third party cover makes sense
- Budget-conscious drivers who can self-fund minor repairs
- Street parkers needing theft/fire protection without full comprehensive
- Families happy to nominate drivers and accept age limits to cut costs
3. Pay less by driving less and limiting who drives
If your car spends more time parked than on the road, you’re a prime candidate for a low‑kilometre policy. Many Australian insurers now price for “drive less, pay less”, and several also reward you for nominating specific drivers or setting a minimum driver age. Together, these tweaks reduce your risk profile and your premium without gutting cover.
Why it saves
Insurers price on exposure. Fewer kilometres equals fewer chances to claim, so they charge less. CHOICE lists multiple brands offering low‑kilometre savings (including AAMI, Apia, Budget Direct, Coles, Woolworths Everyday, GIO and Suncorp). Suncorp also confirms reduced premiums for applicants who drive fewer than 10,000km a year. Nominating drivers or restricting cover to over‑a‑set‑age typically trims risk further, and some insurers (e.g. Allianz) discount for nominated drivers.
How to do it
Start with your actual usage and who really drives.
- Confirm annual kilometres: Check your odometer and service history; choose a low‑km cap that comfortably fits your routine.
- Get quotes with a km cap: Ask for prices at your expected kilometres (e.g. under 10,000km).
- Nominate drivers: List the regular drivers and consider an age limit (e.g. 25+ or 30+) if it suits your household.
- Keep details current: Update your insurer if your driving increases or driver mix changes.
What to watch out for
- Exceeding your km cap: Policies limit cover to a stated number of kilometres—read your PDS and notify the insurer if you’ll exceed it.
- Unlisted/age excesses: CHOICE warns of high unlisted-driver excesses. For example, Suncorp shows a $400 age excess for listed drivers vs $1,400 if not listed.
- Occasional drivers: If someone else sometimes drives, ensure they’re listed or you accept the extra excess.
Estimated savings
Switching to a low‑kilometre policy and restricting drivers commonly reduces premiums versus open‑driver, unlimited‑km settings. The exact saving varies by insurer and state, but combining both levers can deliver meaningful year‑on‑year reductions.
Best for
- Low‑mileage drivers (e.g. under 10,000km/year)
- Households with predictable drivers willing to nominate and set age limits
- Second cars and city commuters who mostly park-and-ride
- Businesses with rostered drivers where you can clearly list who’s behind the wheel
4. Stack discounts and time your renewal to pay less
If you’re wondering how to save on car insurance without cutting cover, smart stacking is your friend. Australian insurers offer a mix of online, multi‑policy, low‑kilometre, nominated‑driver and annual‑payment savings. Pair that with a fresh set of quotes at renewal (don’t auto‑renew) and you can shave real dollars off your premium.
Why it saves
Discounts directly reduce your premium, and timing stops you paying the “loyalty penalty”. CHOICE highlights big price gaps between insurers and notes common discounts. Moneysmart advises getting new quotes at renewal, and Suncorp confirms you’ll pay less if you pay annually, plus offers a 15% multi‑policy discount on 3+ eligible policies. Several brands also cut prices for low kilometres and nominated drivers.
How to do it
Line up the savings you actually qualify for, then apply them in one go.
- Pay annually: Many insurers charge less than monthly. Some (e.g. Allianz, CGU, National Seniors, NRMA, RAA) offer monthly at no extra cost—check first.
- Multi‑policy bundle: Aim to combine home/contents/car to unlock a sizeable discount (e.g. Suncorp 15% on 3+ eligible policies).
- Online purchase: First‑year online discounts are common (e.g. Suncorp $50 off comprehensive).
- Low‑kilometre and driver limits: Ask for low‑km pricing and nominated/age‑restricted drivers.
- List your current insurer: CHOICE found targeted discounts of roughly 5–13% depending on who you switch from.
What to watch out for
- First‑year only: Online discounts often apply once.
- Sequential discounts: Subsequent discounts apply to an already‑discounted premium; taxes/charges may not be discounted.
- CTP rules: Some premiums (e.g. QLD CTP) can’t be discounted.
- Monthly surcharges: Avoid paying extra unless the insurer waives it.
- Driver/excess traps: Unlisted or under‑age drivers can trigger higher excesses.
Estimated savings
Stacking can deliver double‑digit reductions. For example: a multi‑policy discount (up to 15%), plus a previous‑insurer discount (around 5–13%), plus annual‑payment and online first‑year savings. Actual outcomes vary by insurer and state, and discounts are applied sequentially.
Best for
- Households with multiple policies ready to bundle
- Drivers nearing renewal who can switch and buy online
- Budgeters who can pay annually to avoid instalment loading
- Switchers coming from brands that trigger targeted “previous insurer” discounts
5. Keep your details and risk profile optimised
Set‑and‑forget costs money. Insurers price on risk inputs you control—who drives, how far you drive, where the car sleeps, and even whether the finance is paid out. Keeping these details accurate (and favourable) is a quiet but powerful way to save on car insurance year after year without sacrificing protection.
Why it saves
Your premium and excess are influenced by where your car is kept overnight and the people who drive it, so accurate data matters. Moneysmart notes no‑claim bonuses and excess choices affect what you pay, and CHOICE cautions that even not‑at‑fault claims can lift future premiums—so preventing small claims and tightening risk inputs helps keep renewals down. Suncorp also flags that updating a paid‑out loan on your policy may save money.
How to do it
Tidy your profile first, then re‑quote so savings flow through.
- List the right drivers: Keep only regular drivers on the policy and use nominated/age limits if they fit your household.
- Confirm overnight parking: Ensure your policy reflects where the car is actually kept; update after a move.
- Lock in realistic kilometres: If your usage drops, tell your insurer or request a low‑km option.
- Update finance status: If you’ve paid off the car, reflect it on your policy—Suncorp says you may save.
- Right‑size add‑ons: Remove options you don’t use; keep those you value (e.g., hire car).
- Protect your NCB: Consider paying for minor repairs yourself to avoid claims that could push up renewals.
What to watch out for
Small inaccuracies can wipe out savings or coverage.
- Unlisted/age excesses: These can be hefty if an unlisted or younger driver crashes.
- Exceeding km limits: Low‑kilometre cover needs honest tracking and updates.
- Not‑at‑fault excess rules: Some policies still charge—check your PDS.
- Misstated details: Incorrect garaging/usage can cause claim issues.
Estimated savings
Results vary, but correcting risk factors (like finance paid‑out, driver listings, and annual kilometres) and avoiding small claims can prevent premium creep and produce meaningful reductions at renewal. Combine this with earlier tactics (right‑sizing cover and discounts) to compound the effect.
Best for
- Drivers who’ve moved or changed parking (street vs off‑street)
- Owners who’ve just paid off finance and haven’t updated the policy
- Low‑claim households keen to preserve no‑claim benefits
- Families with predictable drivers who can be listed and age‑limited
Next steps
Five levers move most premiums: switch with a price-beat, right‑size cover/value/excess, drive less and limit drivers, stack discounts at renewal, and keep your details tight. Action them in one sitting: gather your policy info, re-quote, and only pay for risks you actually carry. If you want expert help (and a sharper rate), get a competitive quote and price‑beat from National Cover. You’ll access data-backed pricing, specialist cover for private and commercial use, lifetime repair warranty, not‑at‑fault replacement cars and 24/7 towing—plus friendly claims support when it matters.
