No single insurer is cheapest for everyone, so the most reliable way to pay less is to compare like-for-like quotes at every renewal. That means the same cover type, insured value, excess, listed drivers, kilometres and parking address. ASIC found that people who contacted their insurer about a renewal often got a lower price, and that paying annually instead of by instalments could save 10% to 20% with insurers that charge more for monthly payments. This guide is general information, not personal insurance advice.
Searches for car insurance quotes and cheap car insurance have risen. Premiums have climbed well ahead of inflation in recent years, but your renewal may not follow the averages.
Why premiums have risen
ASIC Report 838, published on 11 August 2026, says motor vehicle insurance premiums rose 8% in the 2024–25 financial year. That followed growth of more than 42% in the average cost of a comprehensive policy from 2019 to 2024, a figure ASIC attributes to the Insurance Council of Australia.
The Insurance Council told the ABC on 16 October 2026 that the average motor claim rose 32% to $6,266 over the four years to 2026. It blamed higher vehicle replacement, parts and labour costs and longer repair times. Those are industry-wide pressures. Your own premium also depends on your car, address, age, claims history and the insurer’s pricing.
ASIC also found that none of the insurers it reviewed explained in their quote and renewal documents which factors drove a customer’s premium, or why it had changed from the year before.
What ASIC found that can help you
From ASIC’s report and its accompanying media release:
Insurers that charged more for paying by instalments did not make clear in renewal notices that customers could save 10% to 20% by paying annually.
Five insurers did not show a side-by-side comparison of last year’s and this year’s insured value or excess in renewal notices.
Only 30% of surveyed consumers contacted their insurer about their renewal. Of those who did, about 31% had their premium reduced without changing their policy settings.
That last point is not a guarantee, but it means a phone call or a competing quote is worth the effort.
The like-for-like quote checklist
A cheaper quote is only cheaper if it buys the same protection. Write these down next to every premium.
Check | Why it matters |
|---|---|
Cover type | Comprehensive, third party fire and theft, and third party property are different products |
Market or agreed value, and the amount | A lower insured value makes the premium look cheaper but pays less if the car is written off |
Basic excess and any extra excesses | A low premium can hide a high excess. Check how unlisted or young drivers affect cover and any additional excess |
Listed drivers and their ages | Check how the policy treats drivers who are not listed |
Kilometres, use and overnight parking | Private, commuting and business use are priced differently, and must be declared accurately |
Annual or monthly payment | Monthly can cost more in total, so compare the full year cost |
Hire car, windscreen and roadside options | Extras add cost and differ in limits and conditions |
Choice of repairer | Some policies require the insurer’s repairer network |
Modifications and accessories | Tell the insurer about modifications and confirm they are accepted |
Key exclusions | Read the Product Disclosure Statement (PDS) for the exclusions you are most likely to hit. The Target Market Determination (TMD) describes who the product is designed for |
Ways to bring a quote down without cutting the cover you need
Get at least three quotes, including a national brand and your state motoring club’s insurer.
Call your current insurer with a competing quote before you renew.
Pay annually if you can, and compare the total instalment cost if you can’t.
Check the insured value against what the car is really worth today.
Consider a higher excess only if you could afford to pay it in a claim.
Keep your listed drivers and kilometres current.
Get a quote before you buy a car, because the model can change the premium.
What a state average can and can’t tell you
State averages from Canstar and CHOICE use set driver and car profiles and their own method, so they are a sense check, not a price for your car. Our car insurance costs by state guide explains those tables and why they differ. If you are unsure which level of cover you need, read our third party versus comprehensive guide.
Keep the other costs separate
Compulsory third party (CTP) insurance and registration are separate from the comprehensive premium, and most states bundle CTP with rego. See our rego costs by state guide for those bills.
If you think your renewal is unfair
Ask your insurer to explain the main reasons for the change. If you are not satisfied, use its internal complaints process. Unresolved complaints can go to the Australian Financial Complaints Authority.
This article is general information and does not consider your circumstances. Read the PDS before buying insurance.