How Do I Find Cheap Car Insurance in Australia? 2026 Guide
To find cheap car insurance in Australia, pick the level of cover you actually need, compare quotes before every renewal, pay annually, set a higher excess you can afford, restrict drivers and kilometres where it fits, then go through ShopBack before you buy. How Compare the Market and other comparison sites fit in.
Published: 8 October 2026 · Last updated: 8 October 2026 · Author: Hejia Zhang, Editor in Chief, ShopBack Australia
To find cheap car insurance in Australia, choose the level of cover you actually need, compare quotes before every renewal, and adjust the four levers insurers price on: how you pay, your excess, who drives and how far. Compare the Market says paying annually is generally cheaper than paying monthly, and a higher excess typically lowers the premium. Then go through ShopBack before you buy the policy.
ShopBack Australia is a free app and website that gives part of what you spend back as cash when you buy from partner stores, including insurance comparison sites like Compare The Market. You open ShopBack, tap the store, then buy as normal. Sign up free before you compare.
How do I find cheap car insurance in Australia?
The cheapest policy is usually the one that matches your real risk, bought after comparing several quotes, paid in one go. Here is the order that tends to save the most:
- Pick the right level of cover. Comprehensive, Third Party Fire and Theft, or Third Party Property Damage (more on each below).
- Check your renewal notice. Compare the Market's general insurance chief, Adrian Taylor, suggests comparing your renewal premium with last year's, since the renewal letter should show both.
- Compare quotes. Use one or more comparison sites and get direct quotes from insurers that are not listed there.
- Adjust the price levers. Pay annually, choose a higher excess you can afford, restrict young drivers if no one under 25 drives the car, and ask about low-kilometre cover if you drive less.
- Go through ShopBack before you buy. Open ShopBack, tap the comparison site or insurer, then buy the policy.
- Switch if it is cheaper. You do not have to wait for renewal, but check for cancellation fees on your current policy.
What drives your price. According to Compare the Market, premiums depend mainly on the type of cover and how risky you are to insure, based on your age, where you park the car overnight, your car's make, model and age, how many kilometres you drive a year, any modifications, who else drives the car, and your driving and claims history. Some of these you cannot change. The ones you can change are where the savings are.
Cheap car insurance: the levels of cover and what they cost you
The level of cover is the biggest single choice on price: Third Party Property Damage is usually the cheapest and Comprehensive usually the most expensive. Here is what each one covers, according to Compare the Market's guide:
| Level of cover | Covers damage you cause to others | Covers your car for fire and theft | Covers your own car in an accident or storm | Typical price position |
|---|---|---|---|---|
| Third Party Property Damage | Yes | No | No (only if hit by an uninsured driver) | Usually the cheapest |
| Third Party Fire and Theft | Yes | Yes | No | Usually in the middle |
| Comprehensive | Yes | Yes | Yes | Usually the most expensive |
| CTP (green slip in NSW) | No, this covers injury to people | No | No | Compulsory, separate from the above |
Who suits which level. If your car is older and you could afford to replace it yourself, Third Party Property Damage or Third Party Fire and Theft may be enough, since they still cover the bigger risk: damage you cause to someone else's car. If your car is newer, financed or hard to replace, Comprehensive is usually the safer choice, and the saving should come from the other levers instead.
Market value or agreed value. Comprehensive policies may let you choose. Compare the Market explains that agreed value fixes the amount you are covered for when you buy or renew, while market value is what your car is worth on the day of the claim. Agreed value may increase the premium.
Optional extras raise the price. Roadside assistance, hire car after an accident and windscreen cover are useful, but each usually adds to your premium. Only keep the ones you would really use.
Cheap car insurance in Australia in 2026: the five levers that lower your premium
In 2026, the levers Compare the Market lists for cheaper car insurance are paying annually, increasing your excess, restricting drivers' ages, driving less and comparing often. Here is how each works.
| Lever | How it lowers the price | Trade-off |
|---|---|---|
| Pay annually | Insurers may add charges for paying monthly or quarterly, according to Compare the Market | A larger payment up front |
| Higher basic excess | Typically reduces the premium | You pay more out of pocket on an at-fault claim |
| Restrict drivers' ages | Restricting drivers under 25 may cut the premium | Young drivers are not covered, or pay a large excess |
| Low-kilometre cover | Some insurers reduce premiums for low-kilometre drivers, typically under 15,000km a year, according to Compare the Market | You must stay under the limit |
| Compare often | A policy that was good value a few years ago may not be now | A few minutes of your time each year |
Be careful with excess. Compare the Market lists several types: a basic excess, an age or inexperienced driver excess, an unlisted driver excess and other additional excesses. A low premium with a high combined excess can cost more in a bad year. Read the Product Disclosure Statement (PDS) for every excess that applies.
Be honest on the quote. Compare the Market lists lying or withholding information from your insurer among the exclusions common to all types of car insurance. A cheap policy you cannot claim on is not cheap.
Cheap car insurance best deals in Australia for 2026: how to compare and buy
The best deal in 2026 usually comes from comparing at least a few quotes for exactly the same cover, then buying through ShopBack. A like-for-like comparison is the only way to see which price is really lower.
Before you compare, have these ready, as Compare the Market lists them: your registration number (it pre-fills the make and model), the level of cover, any non-standard accessories or modifications, any unrepaired hail damage, any remaining finance, how you use the car, how far you drive, where you live and park, and personal details like your date of birth, employment status, the age you got your licence and your claims history.
Match the quotes before you compare price. Check the same excess, the same listed drivers, the same market or agreed value, and the same optional extras. Two quotes that differ by $100 may differ because one has a $500 higher excess.
Worked example (illustrative only). Say your renewal comes in at $1,200 and a comparable quote is $1,000 a year, paid annually. You open ShopBack, tap Compare The Market, and buy the $1,000 policy. If an illustrative $50 comes back through ShopBack, your effective price is $950, or $250 less than the renewal. The real offer changes, so check the live offer and terms on the Compare The Market ShopBack page before you buy.
Cash back lowers what you actually pay. It comes back as cash, so it works like a discount on the price, not like points or miles. ShopBack lowers the effective price of flights, hotels and online orders after you pay, and insurance bought through a partner works the same way.
Compare The Market cheap car insurance in Australia: how it works
Compare the Market is an Australian comparison service that lets you compare car insurance quotes from a range of partner insurers side by side, free to use, according to the company. It says it has run more than 23 million comparisons, at the time of writing, and that you can also compare through its Simples app.
What to know before you use it:
- It does not show every insurer. Compare the Market states it does not compare all brands in the market or all products offered by all brands, and some may not be available to you.
- Quotes take a few minutes. You enter your car and personal details once and see a list of policies from its partners.
- You can switch at any time. Compare the Market notes you do not have to wait for your renewal date, though your current insurer may charge a cancellation fee.
- Read the PDS and Target Market Determination. Compare the Market recommends both to check inclusions, exclusions and whether a policy suits you.
How to use ShopBack with Compare The Market:
- Open ShopBack Australia in the app or on the website.
- Tap Compare The Market and follow the link to its car insurance comparison.
- Compare your quotes and choose a policy.
- Buy the policy in the same session.
- Cash comes back once the purchase is confirmed. Check the live offer and terms on the Compare The Market ShopBack page first, since conditions can apply.
Other insurance comparison sites and insurers on ShopBack Australia include Compare Club, iSelect and Youi. Using two comparison sites usually shows you more of the market than one.
After the insurance: planning a road trip for less
Once your car is insured, the next big costs on a road trip are accommodation and things to do. Save on your trip by booking hotels and activities, and flights if part of the trip is by air, through ShopBack. Open ShopBack Travel, pick where you are going, then book. The same rule applies: the cash that comes back lowers the effective price of the booking. See how to earn on travel bookings for the steps.
If you are hiring a car rather than driving your own, check what the hire company's cover includes and what excess applies before you add any optional cover at the counter.
Frequently asked questions
How do I find cheap car insurance in Australia?
Choose the level of cover you actually need, compare quotes from several insurers before you renew, pay annually instead of monthly, pick a higher excess you can afford, and restrict drivers and kilometres if that suits how you use the car. Then open ShopBack and tap the comparison site or insurer before you buy the policy.
What is the cheapest type of car insurance in Australia?
Third Party Property Damage is usually the cheapest level of cover. According to Compare the Market, it covers damage you cause to other people's vehicles and property, and only covers your own car if it is damaged by an uninsured driver. Comprehensive cover protects your own car too but is usually the most expensive.
Is it cheaper to pay car insurance annually or monthly?
Paying annually is usually cheaper. Compare the Market says paying in one annual lump sum is generally cheaper because insurers may add charges for paying monthly or quarterly. If you can afford the lump sum, it is one of the simplest ways to lower the yearly cost.
Does a higher excess make car insurance cheaper?
Usually, yes. Choosing a higher basic excess typically lowers your premium, according to Compare the Market. The trade-off is that you pay more out of pocket if you make an at-fault claim, so only choose an excess you could pay tomorrow.
Can I switch car insurance before my renewal date?
Usually, yes. Compare the Market notes you do not have to wait for renewal and can cancel an existing policy at any time and switch insurers, but some insurers charge a cancellation fee. Check your current policy terms before you switch.
Does Compare the Market show every car insurer?
Not every one. Compare the Market states that it does not compare all brands in the market or all products offered by all brands. Use it alongside other comparison sites and direct quotes from insurers to see more of the market.
What details do I need for a car insurance quote?
According to Compare the Market, you will usually need your registration number or car details, the level of cover, any modifications, any remaining finance, how you use the car, how far you drive, where you park it, and personal details like date of birth, the age you got your licence and claims history.
Is CTP the same as car insurance?
No. CTP, or a green slip in NSW, covers your legal liability for injuring or killing other people. According to Compare the Market, it does not cover damage to your car or other people's cars, which is what Third Party Property Damage, Third Party Fire and Theft and Comprehensive car insurance are for.
How does ShopBack lower the cost of car insurance?
ShopBack lowers the effective price of online orders after you pay. If you open ShopBack and tap Compare The Market or an eligible insurer before you buy, part of what you spend can come back as cash once the purchase is confirmed. It works like a discount, not like points. Check the live offer and terms on the store's ShopBack page.
How much can I save on car insurance in Australia?
It depends on your car, your address, your drivers and your cover. As an illustration only, if a policy costs $1,000 a year and an illustrative $50 comes back through ShopBack, the effective price is $950. Check the live offer on the Compare The Market ShopBack page, and compare quotes before you renew.
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Disclaimer
The views in this article are those of the author. Car insurance premiums, cover, excesses, optional extras, cancellation fees and eligibility are set by each insurer, depend on your circumstances and change over time. Read the Product Disclosure Statement and Target Market Determination before you buy. Comparison sites do not compare every insurer or policy. ShopBack offers and conditions vary by store and campaign; check the current offer and terms on each store's ShopBack page before you buy.
This article is general information only and is not financial or insurance advice.
Related guides
How ShopBack Works
ShopBack pays real AUD when you shop online via app, site, or extension. Start at ShopBack, click through to a partner store, earn a percentage back.
What Is Cashback?
Cashback is real money paid back as a percentage of a qualifying purchase, funded by the retailer's affiliate budget. You pay the same checkout price.
Activate Cashback Before You Buy
Start every online session at ShopBack Australia, click through to the retailer, and finish checkout in the same session. That's what turns cashback on.
Earn Cashback on Hotels & Flights
Travel is a higher-paying cashback category. Compare prices on the ShopBack Travel Planner, click through to Booking, Agoda, Qantas, Virgin, or Webjet, and complete the booking in the same session.
Withdraw ShopBack Cashback
Withdraw ShopBack cashback to an Australian bank account once your Confirmed balance meets the minimum. Submitted via app or site and credited within 10 days.
