Which is the cheapest car insurance in Australia?
Finding the perfect mix of coverage and cost in the wide world of car insurance can sometimes seem as challenging as manoeuvring through a busy intersection.
Searching for the most budget-friendly car insurance in Australia may seem like navigating a complex maze with numerous choices and hidden corners. But don't worry, fellow drivers! We're here to assist you in avoiding confusion and securing the most cost-effective coverage for your new used car.
Why do people look for cheap insurers?
Finding joy in discovering cheap yet high-quality items is a common trait among people. The same goes for car insurance, as individuals seek out cost-effective options for many reasons.
- Saving money: The main reason is to save money. Affordable car insurance premiums can help individuals better manage their finances.
- Legal obligation: In Australia, having at least third-party car insurance is a legal requirement. Some individuals choose the most economical option to fulfil this obligation without spending too much.
- Vehicle value: For older or less valuable vehicles, individuals may opt for cheaper insurance as they may not see the necessity for more expensive comprehensive coverage.
- Limited driving needs: If someone drives infrequently or for short distances, they may find comprehensive insurance unnecessary and instead choose cheaper, more basic coverage.
- Peace of mind: Even though cheap insurance may not offer extensive coverage, it can still provide a sense of security and peace of mind in case of unexpected events.
- Affordability: Some people simply cannot afford pricier insurance options, so they select the most affordable one available to meet their legal requirements and provide some financial protection.
- Personal circumstances: Factors such as age, driving history, and location can influence insurance premiums. People may opt for cheaper insurance based on their unique circumstances.
It's essential to remember that while affordable insurance can save money in the short term, it's crucial to ensure that the policy offers sufficient coverage for your needs to avoid potential financial difficulties in the event of an accident or other unforeseen situations.
What is the cheapest car insurance available in Australia?
Following a recent comparison conducted by Finder, a financial comparison website, Bingle was found to be the cheapest car insurance in the country. With the insurer providing a comprehensive cover starting at just $862 per year on average, Bingle is undoubtedly the lowest-costing insurance.
It won the category of ‘Best Car Insurance - Low Cost’ in the comparison published by Finder on January 24, 2024. The low-cost category is specifically for insurance seekers who want to get a bargain. But it is not solely a low-cost insurance, but a value insurance as well. It has also received the Canstar award for Outstanding Value Car Insurance in 2017, 2018, 2020 and 2021.
What makes Bingle so affordable?
For individuals curious about Bingle's ability to provide cheap car insurance without compromising quality, the following insights shed light on the company's approach:
Bingle stands out as a provider of competitively priced car insurance in Australia, backed by a commitment to simplicity and efficiency. Operating exclusively online, Bingle transcends traditional overhead costs associated with physical sales centres, ensuring streamlined operations and minimal expenses. This online-only model allows Bingle to maintain affordability while delivering accessible customer service through digital channels.
By offering straightforward insurance products—Comprehensive Car Insurance and Third Party Car Insurance—Bingle prioritises transparency and ease of use. With a focus on market value coverage for comprehensive policies, supplemented by optional extras such as New For Old coverage for newer vehicles, Bingle ensures clarity and flexibility for policyholders.
Despite its competitive pricing, Bingle stands as a reputable insurer, offering quality coverage and reliable service. Bolstered by the support of the Suncorp Network, including well-known financial brands like Suncorp, AAMI, GIO, and others, Bingle instils confidence in its customers. Since its inception in 2007, Bingle has insured over 715,000 vehicles and processed more than 165,000 claims, demonstrating its reliability and commitment to customer satisfaction.
Moreover, Bingle's pricing philosophy eschews upfront discounts in favour of offering consistent, competitive rates year after year. Additionally, policyholders benefit from a lifetime guarantee on authorised repairs for vehicles insured under Comprehensive Car Insurance, even after ownership changes. With no cancellation fees, customers have the flexibility to explore Bingle's offerings and make informed decisions without financial constraints.
Customer feedback further underscores Bingle's reputation as a trustworthy insurer, with positive reviews attesting to the company's reliability and service quality. By prioritising affordability, transparency, and customer satisfaction, Bingle emerges not only as a cost-effective insurance option but also as a dependable choice for Australian motorists seeking reliable coverage without compromise.
What were some of the other ‘low-cost’ insurances in the segment?
Among the other low-cost insurance options in the segment, ROLLiN' Comprehensive Car Insurance stood out, claiming the second-place spot for affordability among eligible comprehensive policies analysed. This insurance is particularly budget-friendly for young drivers.
Hume Bank Comprehensive Car Insurance also offered competitive pricing, securing the third-place position for low cost. On average, a Hume Bank policy costs $959, making it an appealing choice for cost-conscious consumers.
What are some of the Value Car Insurance companies in Australia?
Value insurance is a category where insurance companies provide insurance policies with the best policies that they can at a price point which is as cost-effective as possible. They might not be as cheap as the insurance in the ‘low-cost’ category but still provide the most value out of their insurance. The data we have taken so far is sourced from Finder, and as CARS24, we refer to their findings for our analysis.
In times of rising living costs, the price becomes a crucial factor. That's why the value score, with the remaining 70% based on 22 different features.
Budget Direct car insurance was crowned the year’s award for value insurance. The average policy at the company costs about $992 per year. That's cheaper than 27 other insurers including NRMA, AAMI and Allianz. It provides the insurers with a good level of coverage, a level similar to other more expensive insurance but at a lower cost.
Hume Bank Comprehensive Car Insurance secured the second-place spot for value among the 32 eligible comprehensive policies analysed, falling just behind Budget Direct. Its high cover limits for features such as hire cars, personal items, and key replacement, coupled with its comparatively low cost, contributed to its high ranking. It was also noted as one of the cheapest policies out of the 32 reviewed.
Virgin Money Comprehensive Car Insurance followed closely behind, ranking third for value among the 32 policies analysed. Virgin Money's competitive pricing, which is below the national average, combined with its comprehensive features, comparable to more expensive policies, contributed to its strong performance in the value category.
How is value car insurance different from low-cost car insurance?
Value car insurance differs from low-cost car insurance in that it offers a balance between affordability and the extent of coverage and features provided. While low-cost car insurance focuses primarily on offering the cheapest premiums possible, value car insurance seeks to provide customers with a policy that not only fits their budget but also offers a comprehensive level of coverage and additional benefits.
Value car insurance often includes features such as higher cover limits, additional perks like roadside assistance, and more flexible policy terms compared to low-cost insurance. This means that while the premium might be slightly higher than the cheapest options available, the overall value provided by the policy in terms of coverage and benefits can outweigh the additional cost.
In essence, value car insurance aims to provide customers with the best overall value for their money, considering both the cost of the policy and the extent of coverage and benefits provided, whereas low-cost car insurance focuses primarily on offering the lowest premiums possible without necessarily providing comprehensive coverage or additional benefits.
Conclusion
Finding the right car insurance means you have to balance between affordability and quality coverage. Cheap insurance, like that offered by Bingle, can provide significant savings without compromising on essential features. Value insurance, exemplified by Budget Direct, offers a balance of affordability and comprehensive coverage, making it a top choice for many drivers. Other low-cost options, such as ROLLiN' and Hume Bank, also provide competitive pricing and decent coverage. Ultimately, whether you choose low-cost or value insurance depends on your budget and coverage needs, but with careful consideration, you can find a policy that offers both affordability and quality protection.
FAQS
1. Which company typically has the cheapest car insurance in Australia?
Bingle offers the cheapest car insurance coverage in the country. With coverage starting at just $862 per year on average, it is the best car insurance for people who are looking to save pennies.
2. What is the average price of car insurance in Australia?
Though not absolute, the average price of car insurance in the country is about $1,363. The prices can vary in accordance with the type of insurance you choose for your vehicle, the additional policies that you add, and your car.
3. What makes market value different from than agreed value?
Market value is the estimated worth of your car as determined by your insurer, whereas the agreed value is a set amount agreed upon by you and your insurer. Opting for agreed value can reduce the risk of being underinsured and facing out-of-pocket expenses (provided you agree to a higher amount), but it may result in higher premiums.
Finding the perfect mix of coverage and cost in the wide world of car insurance can sometimes seem as challenging as manoeuvring through a busy intersection.
Searching for the most budget-friendly car insurance in Australia may seem like navigating a complex maze with numerous choices and hidden corners. But don't worry, fellow drivers! We're here to assist you in avoiding confusion and securing the most cost-effective coverage for your new used car.
Why do people look for cheap insurers?
Finding joy in discovering cheap yet high-quality items is a common trait among people. The same goes for car insurance, as individuals seek out cost-effective options for many reasons.
- Saving money: The main reason is to save money. Affordable car insurance premiums can help individuals better manage their finances.
- Legal obligation: In Australia, having at least third-party car insurance is a legal requirement. Some individuals choose the most economical option to fulfil this obligation without spending too much.
- Vehicle value: For older or less valuable vehicles, individuals may opt for cheaper insurance as they may not see the necessity for more expensive comprehensive coverage.
- Limited driving needs: If someone drives infrequently or for short distances, they may find comprehensive insurance unnecessary and instead choose cheaper, more basic coverage.
- Peace of mind: Even though cheap insurance may not offer extensive coverage, it can still provide a sense of security and peace of mind in case of unexpected events.
- Affordability: Some people simply cannot afford pricier insurance options, so they select the most affordable one available to meet their legal requirements and provide some financial protection.
- Personal circumstances: Factors such as age, driving history, and location can influence insurance premiums. People may opt for cheaper insurance based on their unique circumstances.
It's essential to remember that while affordable insurance can save money in the short term, it's crucial to ensure that the policy offers sufficient coverage for your needs to avoid potential financial difficulties in the event of an accident or other unforeseen situations.
What is the cheapest car insurance available in Australia?
Following a recent comparison conducted by Finder, a financial comparison website, Bingle was found to be the cheapest car insurance in the country. With the insurer providing a comprehensive cover starting at just $862 per year on average, Bingle is undoubtedly the lowest-costing insurance.
It won the category of ‘Best Car Insurance - Low Cost’ in the comparison published by Finder on January 24, 2024. The low-cost category is specifically for insurance seekers who want to get a bargain. But it is not solely a low-cost insurance, but a value insurance as well. It has also received the Canstar award for Outstanding Value Car Insurance in 2017, 2018, 2020 and 2021.
What makes Bingle so affordable?
For individuals curious about Bingle's ability to provide cheap car insurance without compromising quality, the following insights shed light on the company's approach:
Bingle stands out as a provider of competitively priced car insurance in Australia, backed by a commitment to simplicity and efficiency. Operating exclusively online, Bingle transcends traditional overhead costs associated with physical sales centres, ensuring streamlined operations and minimal expenses. This online-only model allows Bingle to maintain affordability while delivering accessible customer service through digital channels.
By offering straightforward insurance products—Comprehensive Car Insurance and Third Party Car Insurance—Bingle prioritises transparency and ease of use. With a focus on market value coverage for comprehensive policies, supplemented by optional extras such as New For Old coverage for newer vehicles, Bingle ensures clarity and flexibility for policyholders.
Despite its competitive pricing, Bingle stands as a reputable insurer, offering quality coverage and reliable service. Bolstered by the support of the Suncorp Network, including well-known financial brands like Suncorp, AAMI, GIO, and others, Bingle instils confidence in its customers. Since its inception in 2007, Bingle has insured over 715,000 vehicles and processed more than 165,000 claims, demonstrating its reliability and commitment to customer satisfaction.
Moreover, Bingle's pricing philosophy eschews upfront discounts in favour of offering consistent, competitive rates year after year. Additionally, policyholders benefit from a lifetime guarantee on authorised repairs for vehicles insured under Comprehensive Car Insurance, even after ownership changes. With no cancellation fees, customers have the flexibility to explore Bingle's offerings and make informed decisions without financial constraints.
Customer feedback further underscores Bingle's reputation as a trustworthy insurer, with positive reviews attesting to the company's reliability and service quality. By prioritising affordability, transparency, and customer satisfaction, Bingle emerges not only as a cost-effective insurance option but also as a dependable choice for Australian motorists seeking reliable coverage without compromise.
What were some of the other ‘low-cost’ insurances in the segment?
Among the other low-cost insurance options in the segment, ROLLiN' Comprehensive Car Insurance stood out, claiming the second-place spot for affordability among eligible comprehensive policies analysed. This insurance is particularly budget-friendly for young drivers.
Hume Bank Comprehensive Car Insurance also offered competitive pricing, securing the third-place position for low cost. On average, a Hume Bank policy costs $959, making it an appealing choice for cost-conscious consumers.
What are some of the Value Car Insurance companies in Australia?
Value insurance is a category where insurance companies provide insurance policies with the best policies that they can at a price point which is as cost-effective as possible. They might not be as cheap as the insurance in the ‘low-cost’ category but still provide the most value out of their insurance. The data we have taken so far is sourced from Finder, and as CARS24, we refer to their findings for our analysis.
In times of rising living costs, the price becomes a crucial factor. That's why the value score, with the remaining 70% based on 22 different features.
Budget Direct car insurance was crowned the year’s award for value insurance. The average policy at the company costs about $992 per year. That's cheaper than 27 other insurers including NRMA, AAMI and Allianz. It provides the insurers with a good level of coverage, a level similar to other more expensive insurance but at a lower cost.
Hume Bank Comprehensive Car Insurance secured the second-place spot for value among the 32 eligible comprehensive policies analysed, falling just behind Budget Direct. Its high cover limits for features such as hire cars, personal items, and key replacement, coupled with its comparatively low cost, contributed to its high ranking. It was also noted as one of the cheapest policies out of the 32 reviewed.
Virgin Money Comprehensive Car Insurance followed closely behind, ranking third for value among the 32 policies analysed. Virgin Money's competitive pricing, which is below the national average, combined with its comprehensive features, comparable to more expensive policies, contributed to its strong performance in the value category.
How is value car insurance different from low-cost car insurance?
Value car insurance differs from low-cost car insurance in that it offers a balance between affordability and the extent of coverage and features provided. While low-cost car insurance focuses primarily on offering the cheapest premiums possible, value car insurance seeks to provide customers with a policy that not only fits their budget but also offers a comprehensive level of coverage and additional benefits.
Value car insurance often includes features such as higher cover limits, additional perks like roadside assistance, and more flexible policy terms compared to low-cost insurance. This means that while the premium might be slightly higher than the cheapest options available, the overall value provided by the policy in terms of coverage and benefits can outweigh the additional cost.
In essence, value car insurance aims to provide customers with the best overall value for their money, considering both the cost of the policy and the extent of coverage and benefits provided, whereas low-cost car insurance focuses primarily on offering the lowest premiums possible without necessarily providing comprehensive coverage or additional benefits.
Conclusion
Finding the right car insurance means you have to balance between affordability and quality coverage. Cheap insurance, like that offered by Bingle, can provide significant savings without compromising on essential features. Value insurance, exemplified by Budget Direct, offers a balance of affordability and comprehensive coverage, making it a top choice for many drivers. Other low-cost options, such as ROLLiN' and Hume Bank, also provide competitive pricing and decent coverage. Ultimately, whether you choose low-cost or value insurance depends on your budget and coverage needs, but with careful consideration, you can find a policy that offers both affordability and quality protection.
FAQS
1. Which company typically has the cheapest car insurance in Australia?
Bingle offers the cheapest car insurance coverage in the country. With coverage starting at just $862 per year on average, it is the best car insurance for people who are looking to save pennies.
2. What is the average price of car insurance in Australia?
Though not absolute, the average price of car insurance in the country is about $1,363. The prices can vary in accordance with the type of insurance you choose for your vehicle, the additional policies that you add, and your car.
3. What makes market value different from than agreed value?
Market value is the estimated worth of your car as determined by your insurer, whereas the agreed value is a set amount agreed upon by you and your insurer. Opting for agreed value can reduce the risk of being underinsured and facing out-of-pocket expenses (provided you agree to a higher amount), but it may result in higher premiums.
