Which is the cheapest car insurance in Australia?

We get it, no one enjoys shopping around for car insurance. But with prices climbing and insurers quietly tweaking premiums and clauses that could leave you holding a big bill, sticking with the same policy year after year could mean you’re throwing money away. If you’re looking for the cheapest car insurance in Australia, you’re not alone, and you’re in the right place.

We’ve zeroed in on the most affordable options. Whether you’re a first-car owner, a cautious parent, or just trying to keep costs low, here’s what you need to know.

Why is car insurance in 2025 getting pricier?

First, some context. The average cost of car insurance in Australia has risen steadily over the past 12 months, driven by inflation, higher repair costs, and extreme weather events. What used to be a $100 monthly bill for many is now edging closer to $150–$200, especially for younger drivers.

That’s why comparing policies isn’t just a good idea, it’s financial self-defence.

What’s the cheapest car insurance in Australia right now?

If we’re talking raw numbers, Bingle Comprehensive is currently the lowest-priced policy on the market. It averages around $942 a year, which is significantly below the national average. But, and this is a big one, Bingle keeps it cheap by keeping things basic.

Meet the Standouts (And who they’re great for)

We’ve broken down four popular budget-friendly insurers, each with its own strengths:

Bingle Comprehensive – Best for the budget-conscious 

• Why it’s cheap: Offers only core protection (accidents, theft, damage).
• Best for: Confident drivers who don’t need extras like roadside assistance or new-for-old car replacement.
• Watch out for: No cover for personal items, and you’ll only get market value if your car is written off.

ROLLiN’ – Best for young drivers

• Why it stands out: Doesn’t charge an extra excess just because you’re under 25 (rare!).
• Best for: P-platers and Gen Z drivers tired of being punished for their age.
• Heads-up: Monthly premiums can change unpredictably, and there’s a big excess if an unlisted driver is involved.

Youi – Best for service and negotiation

• Why it’s unique: Youi actually encourages you to negotiate. Call them, and you might get a better deal.
• Best for: Drivers who don’t mind a phone chat in exchange for potential savings.
• Keep in mind: The initial quote isn’t always cheap, but Youi is flexible.

Budget Direct – Best for online discounts

• Why it’s a deal: New customers can snag up to 15% off just by signing up online.
• Best for: Bargain hunters who don’t need to speak to anyone.
• Caveat: That discount doesn’t apply when you renew, and the policy docs are… long.

How much are you paying for car insurance?

Let’s talk numbers. Based on data collected in June 2025, here’s what the Aussie public across generations are typically paying for their car insurance each month:

No surprises here, the younger you are, the more you pay. That’s what makes youth-friendly providers like ROLLiN’ worth a closer look.

Which state has it the cheapest?

Location matters too when it comes to car insurance premiums in Australia. Insurance isn’t priced the same in Sydney and Hobart. Here’s a snapshot of how premiums can vary across states:

Note: NT and ACT weren’t included due to low sample sizes.

How to save money on car insurance?

Here’s the good news: you can influence what you pay, even if you’re not switching providers. A few quick tips:

• Shop around every year — loyalty rarely pays.
• Limit young or high-risk drivers on your policy.
• Choose a higher excess if you’re confident you won’t need to claim.
• Pay annually instead of monthly (saves on fees).
• Look for online sign-up deals — they often slash your first premium.

Final word: What’s right for YOU?

There’s no one-size-fits-all answer to car insurance; what’s cheap for one person might be risky for another. Those on a tight budget can go with providers like Bingle, while the majority seems to choose Budget Direct, and younger drivers should consider ROLLiN’ for sure. 

Start by comparing quotes tailored to your car, your postcode, and your driving history. It’s the easiest way to find affordable car insurance that actually works for you.

In case you’re looking for a hassle-free experience to get a used car with insurance, you can buy it from CARS24 Australia. Choose from hundreds of quality-checked and certified cars, get fast finance approvals, let us deal with the paperwork and enjoy taking delivery right at your doorstep.