7 things your parents should have told you about car insurance
![CarInsurancePaint_Finder_1800x1000 CarInsurancePaint_Finder_1800x1000](https://www.finder.com.au/finder-au/wp-uploads/2025/01/CarInsurancePaint_Finder_1800x1000.jpg)
You probably don't know these things about car insurance, and it's costing you.
I spoke to a handful of experts and discovered there's all sorts of surprising things that can impact the cost of your car insurance. In no particular order, they are...
1. The colour or finish of your paint
"Believe it or not, the colour of your car can impact the insurance that you pay," says licensed financial creator, Queenie Tan aka Invest with Queenie. "[You should] be mindful that it can impact your insurance premiums, and that's an extra amount you need to pay each year."
2. Your gender
"Unfortunately, it's a fact that male drivers are more reckless than female drivers and they often drive more, so in most cases, men pay more money for their car insurance," explains Finder's personal finance expert, Taylor Blackburn.
"In 2024, there were 1,300 fatalities in Australia, of which 967 were men and only 328 were women (in 5 cases, gender couldn't be determined), BITRE data shows. This demonstrates that, sadly, men get in a lot more fatal accidents and as a result, they often have to pay more for their comprehensive car insurance."
3. Your postcode
There can actually be a difference between the amount that the owners of two houses next to each other pay for their car insurance, according to Taylor.
"This can be for multiple reasons. Crime rate is a factor on a suburban basis, because obviously in a suburb with a higher crime rate there is more of a chance your car may be broken into. Also, those who live closer to public transport can sometimes pay more because there is more foot traffic near your vehicle."
4. When you make your payments
"Often, there's an option to pay yearly or monthly," Queenie says. "I'd encourage you to have a look… at the monthly price vs the annual price, and see how much you can save. It could be quite a lot of money and we're all trying to stretch our money further these days, so every bit counts."
We researched over 50 car insurance providers at Finder, and found that 30 of them charge a fee or additional premium if you choose to pay monthly.
It varies quite a bit, but I did a quick quote to get a ballpark figure. This quote below with a major insurer is for comprehensive car insurance, for a female driver aged 40, with the vehicle parked in Queensland, and the car insured at market value.
5. Being loyal
"Use sign up discounts to pay less," suggests Finder's Insurance Publisher, Peta Taylor. "You can get 10% to 30% off the cost off the policy, or a cash discount of $75 to $100, just for signing up online. That's a huge saving."
6. Your age
"Younger drivers generally have higher insurance premiums than older, more mature drivers," Queenie says. "That's why it's really important… to do your research, see what's available and try to get a good deal."
7. Any modifications
"A lot of insurance providers look through data and it impacts the insurance you pay. If you're looking to modify your car in any way, that can impact your insurance premiums as well," Queenie says.
How to pay less for your car insurance:
Park it undercover
- Parking your car anywhere other than on your street should save you money on your premium. Even if it's just up your driveway or in a carport, this is viewed as being safer and more protected than if it was parked on a road.
Drive safely
- If you are seen as a safe driver and have never made an insurance claim, often you will be rewarded with a no-claim bonus or incentive. In many cases, for each year that you don't make a claim, you can receive an additional discount on your insurance premium (usually capped at 5 years).
Add security
- By showing that you've taken extra steps to stop potential break-ins or theft of your vehicle, you're demonstrating that your car is harder to steal than others, which can translate to less risk and a less expensive premium.
Compare prices
- Each insurer prices risk differently, so you could save money just by switching your insurer. Finder research from 2024 shows the cheapest comprehensive car policy was $862, vs the most expensive at $2,431 (with the same excess). The pricier policy has more inclusions, like windscreen repair and rental car hire after an accident, but both policies cover the basics: fire, theft, accidental damage to your own vehicle and legal liability.
Increase your excess
- Usually, the higher your excess, the lower your premium. Just make sure you choose an excess that is affordable if you need to make a claim. Learn more about car excess.
Pay annually
- If you can afford it, paying annually instead of monthly can help you save big money on your premium, without impacting your cover.
If it's been a while since you compared car insurance, see how much you could save by switching to a new insurer
Disclaimer: General information only. Seek independent advice. CAR 432664
This information is general advice only and has been prepared without taking account of your objectives, financial situation or needs. Before acting on any general advice you should consider whether it is appropriate for you.
Queenie Tan appears as a spokesperson for Youi. Product issued by Youi Pty Ltd, consider the Car Insurance PDS to decide if this product is right for you. PDS & TMD available at youi.com.
Ask a question