How to Lower Your Car Insurance Premiums Legally
From increasing your excess to paying annually — practical strategies that actually work.
Australian car insurance premiums have risen sharply over the past two years. Here are proven, legal ways to reduce what you pay — without cutting coverage that matters.
1. Pay annually, not monthly
Most insurers charge a fee (often 5–15%) for monthly payment plans. Paying annually upfront can save $50–$150 per year on a typical policy.
2. Raise your voluntary excess
Increasing your excess from $500 to $1,000 often reduces premiums 10–20%. Only do this if you have the cash to cover the higher excess if you claim.
3. Limit your listed drivers
Young drivers (under 25) dramatically increase premiums. If your teenager rarely uses the car, consider whether they need to be listed — but note that unlisted drivers may not be covered if they cause an accident.
4. Bundle with home insurance
Most major insurers offer 5–15% multi-policy discounts when you hold both car and home insurance with them.
5. Compare at renewal — every single year
Loyalty is not rewarded in Australian insurance. Premium 'loyalty loading' is a real and documented practice. Running a comparison at renewal is consistently the biggest single lever for saving money.
Timing tip
Start comparing 3–4 weeks before your renewal date. Some insurers offer lower rates to new customers that aren't available via their renewal process.
Ready to compare?
Compare and save on car insurance →