If you want to drive a car on public streets, you’ll need to spend more than just buying the car and filling the petrol tank. Among others, you’ll find that car insurance is one of those additional costs that you’ll have to pay before rubber meets the road.
Drivers like you and I don’t have much say in the matter. But if you’re like most people, the chances are that you’ll want to spend as little as possible on car insurance.
Suppose you're just looking for the cheapest car insurance that Australia has to offer. Well, you've come to the right place. In this article, we will look at auto insurance companies with the most affordable insurance policies.
But before that, there are a few things you need to understand in your search for the cheapest car insurance in Australia.
What You Need to Know About Cheap Car Insurance in Australia
First and foremost, you must understand that insurance is all about risk. The higher the risk of something terrible happening to your car, the higher the cost will be to purchase insurance for that vehicle.
When you understand that it’s all about risk, everything else will make more sense.
So, here are a few things you need to know about getting the cheapest car insurance in Australia.
Average car insurance prices can differ by state
‘Cheap’ is relative depending on which part of Australia you find yourself in. That’s right! Even if we’re talking about the exact vehicle make and model, the insurance price will differ depending on whether you’re from Queensland or New South Wales, for example.
Why? Again, it’s all about risk.
Insurance companies figured that driving risks are different depending on which state or territory we're talking about. Insurers consider various factors in pricing their product, including the number of cars on the road, driver demographics, and so much more.
So, you see, the ‘cheapest’ auto insurance in your state may not be the same as in another state.
Demographics also factor into car insurance prices
Your age, gender, and driving history also determine the ‘cheapest’ car insurance prices you can get.
That’s right! From insurance companies’ perspective, driving risks are different for drivers based on their age (e.g. younger drivers are riskier) and other demographic factors.
Simply put, the cheapest car insurance policies for your parents and yourself will come at two very different costs.
Buying the Cheapest Car Insurance Isn’t the Best Idea
Remember that buying the cheapest car insurance you can get isn't the best idea. The whole point of getting car insurance is to protect you against risks to yourself and your vehicle.
The last thing you want is to find yourself in a situation where your vehicle is damaged, but your insurance policy doesn’t cover that particular kind of damage.
Insurance Policies are Customisable
Lastly, no matter where you are or how old you might be, you can always cut your insurance costs by removing additional items in your policy.
Again, this might not be the best idea, because you want your insurance policy to protect you in a wide range of scenarios.
Nevertheless, if cutting down your insurance costs is a priority, you can negotiate with your insurance company to customise the policy to fit your budget.
What Is a Fair Price for Car Insurance?
So, how much do you expect to pay for car insurance in Australia?
Well, with so many different factors to consider, it’s hard to give you precise numbers. So instead, here are some average price ranges for car insurance according to age groups.
According to the numbers I’ve seen, Queensland typically has the most affordable auto insurance while New South Wales has the most expensive. So, we’ll use these two states to represent the full spectrum of prices you might pay from lowest to highest.
Male or Female Under 25
You’ll probably pay the highest prices for car insurance in this age group, anywhere from about $1,500 in Queensland to $2,600 in New South Wales.
Male or Female From 26-29
If you’re in this group, you can pay anywhere from $780 in Queensland to $1,200 in New South Wales.
Male or Female From 30-44
The higher you go in age, the lower your overall insurance costs will be. After 30, you’ll pay anywhere from $640 in Queensland to $850 in New South Wales.
Male or Female From 45 and Above
After age 45 is when you get to enjoy the lowest insurance costs. In Queensland, you might pay around $570 while in New South Wales it could be about $860.
Who Sells the Cheapest Car Insurance in Australia?
Now that we understand that ‘cheapest’ is a very subjective term let’s talk about which insurance companies you can approach to get a car insurance policy. Based on all the sources we’ve compared, it seems that the three insurance companies that offer the best deals are:
Bingle
Bingle won the Canstar award for Outstanding Value Car Insurance in 2017, 2018, and most recently in 2020. That alone should give you confidence that you’re getting a great deal when you work with them.
Budget Direct
The name should give you an evident enough hint that this is a great choice to go to if you want to minimise your insurance costs. Still, they’ve also won Money Magazine’s award for Insurer of the Year from 2017 to 2020.
Virgin Money
Virgin Money offers many different financial products with auto insurance being one among them. As it turns out, they’ve got some pretty good deals regarding car insurance, especially if you’re in Victoria.
Final Thoughts
As you go around shopping for car insurance, always remember that many factors go into the final price you pay. While some insurance companies might offer you better deals, always remember that other factors like your age and the car’s condition will probably be a more significant influence on the price.
To learn more about car insurance and other topics, be sure to check out Carpart.com.au.
By Ray Hasbollah