In the current cost-of-living crisis, households are counting every cent, yet new research from car insurance comparison site Compare the Market has found that over a third of car owners could be driving away from potential savings by letting their car insurance auto-renew.*
What’s even more surprising is that research is showing a continuing trend from the year before, where almost one in four drivers said they would stay with their current car insurer when their renewal notice came around.+
But the surprises don’t stop there. Breaking down the data by generation, Gen Z were the most likely to auto-renew, with 43.8% of respondents saying that they left their car insurance policies as is. Millennials, on the other hand, were the least likely to let their premium auto-renew without doing anything about it.
| Generation | % of respondents who let their car insurance policy auto-renew |
| Gen Z | 43.8% |
| Millennials | 33.7% |
| Gen X | 37.8% |
| Baby Boomers | 34.3% |
| Australian Average | 36.3% |
Speaking on the potential savings people could be leaving behind, Compare the Market’s Executive General Manager for General Insurance and car insurance expert, Adrian Taylor, said that it’s always worth looking at the offers on the market, even if you’re happy with what your insurer has given you.
“A lot of things can happen within a year when your car insurance renewal comes around,” Mr Taylor said. “From having your kids leave your home to how much you’re driving or even moving houses, it can all have an effect on your policy’s bottom line.
“So even if you’re content with what your insurer has offered you, it’s always good to have a sticky beak around and see all the offers on the market.
“We’ve had one customer come through our car insurance service who was previously with her insurer for at least 10 years and thought she was receiving a discount for being loyal. However, she was still able to save over $280 by comparing her options and choosing a similar policy at a cheaper price point.
“Given the squeeze we’re all feeling on our hip pocket at the moment, it’s worth a few minutes of your time to see the options out there and skip out on the potential loyalty tax you may be paying.”
In addition to switching insurers, there are also other ways to save on your car insurance policy, according to Mr Taylor.
“Most people will likely find that the biggest savings come from switching insurers, as many insurance companies will offer a discount when signing up as a new customer,” Mr Taylor said.
“However, if people are looking to bring down their premium even more, there are a few ways to go about it.
“One of the best ways to go about reducing your premiums is increasing your excess. But it’s worth noting that, like home insurance, it’s a decision that requires careful consideration, as a claim on your policy could require you to pay a higher excess amount out of pocket.
“Another way is to pay your policy annually rather than monthly. While there is the convenience of paying smaller amounts monthly for your car insurance, paying car insurance premiums upfront for the year will often see a cheaper price, as paying monthly will likely see a small admin fee included in your monthly payments.
“People may also forget to remove their adult children from their family car policy, which may increase their premiums. So, it’s worth checking to see if you have any children still on your policy as an additional driver.
“In the same vein, if no one else will be driving your vehicle, you could add on an age limit to your policy, which could also lower your insurance premium.”
*Compare the Market surveyed 1,006 Australian adults aged 18 and over in June 2024
+ Compare the Market surveyed 1,004 Australian adults aged 18 and over in July 2023
^ Kirsteen is based in 3197 VIC and switched her 2010 Toyota Prado on 28/05/2024.
-ENDS-
For interviews and more information, please contact:
Noémi Hadnagy | m: 0433 377 252 | e: [email protected]
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