Sydneysiders are already used to forking out more than the average for food, accommodation and day-to-day expenses. However, when it comes to car insurance, there are some savings to be had.
Find out how to look for the cheapest car insurance in Sydney, whether you’re after the bare minimum from a third party policy or a feature-rich comprehensive plan.
How can I find the cheapest car insurance in Sydney?
The cheapest car insurance in Sydney isn’t a specific policy or provider. The cost of your insurance could be vastly different from your neighbour’s, even if you both have the same car.
However, there are steps you can take to help you get the best value cover available and make sure you aren’t paying for features you don’t need.
- Know what you need. First, figure out what level of cover you need. This will make a big difference to how much you end up paying each year.
- Compare online. Comparing multiple policies online is one of the best ways to make sure you get a great price on your cover. Narrow down your top insurers and see which will give you the best offer. We’ve found prices can double or even triple for similar policies. It’s also a good idea to shop around for your mandatory CTP insurance (more on this below).
- Look for deals. Be across the latest car insurance discounts and see how much more you can save on a new policy. Keep an eye out on your preferred insurers’ websites and social media pages for the latest promos.
- Customise your policy. One size doesn’t fit all when it comes to car insurance. and you don’t have to take the stock standard cover. Many insurers will let you tailor your policy to help bring the costs down, including increasing your excess (as long as you can afford to pay more upfront for a claim) to reduce the annual premium.
- Contact insurers. While there’s nothing more convenient than being able to shop around online, if you’re getting similar quotes from 2 insurers, try contacting them by phone to see if they’re willing to knock anything more off the annual premium.
Read more about finding cheap car insurance in our guide.
How do I know which car insurance is suitable for me?
Ultimately, the right car insurance is a personal choice based on your specific circumstances. While some might be looking for the cheapest car insurance in Sydney, others prefer to strike a balance between cost and features.
Start by deciding what the must-haves are in your policy (e.g. comprehensive vs third party) and which features you aren’t willing to pay extra for. Once you’ve determined the level of protection you need, compare prices and features to find the best option for you.
Comprehensive car insurance
This is the best type of cover if you want full protection. It covers your vehicle for the widest variety of events and incidents, regardless of who is at fault.
Third party car insurance
This insurance covers damage to others’ property and vehicles. You often have the option to add fire and theft protection for your own car. Learn about the key differences between comprehensive cover and third party insurance.
Compulsory third party (CTP)
This is compulsory car insurance for Sydneysiders. It covers legal and medical costs if you injure or kill someone in an accident. You will still need to purchase CTP even if you have comprehensive or third party cover.
Find cheap car insurance in Sydney
Before you can drive, you’ll need to buy compulsory third party (CTP) insurance, also known as a Green Slip in Sydney. This compulsory insurance is the most basic form of cover (and is well short of what’s offered by a comprehensive policy). CTP insurance protects the driver of a vehicle from liability if they injure or cause the death of a person in a motor accident.
All CTP insurance policies provide the same level of protection, but some insurers offer additional cover. There are currently 6 licensed CTP insurers for Sydney drivers.
Compulsory third party insurance providers in Sydney
To calculate the costs for CTP in Sydney, we used the NSW government’s tool, where we found that prices can differ by over $300.
Quotes obtained July 2022
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- Female driver born 1/1/1981
- Silver 2018 Toyota Corolla 2.8L Auto
- Third party only car insurance
- Safe driver with no claims made in the past 3 years
- Drives 10,000-15,000km per year
- Adjusted excess to $850 where possible
- Driver located in Sydney (Postcode: 2153)
- Policy starting 1/08/2022
To determine this estimated cost, we sourced quotes using this profile:
Affordable car insurance in Sydney for low-income earners
Sydneysiders on a low income might be able to get help via Good Shepherd, a not-for-profit community-led organisation that can help people access simple insurance policies.
- To be eligible, you’ll need to meet certain criteria, including receiving Centrelink payments.
- Choose accident loss or damage cover of $3,000 or $5,000.
- Payments can be made through your bank account or via deductions from your Centrelink payments.
Frequently asked questions
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When you compare car insurance in Sydney, there are several factors that insurers take into account to decide on the cost of your policy. Details such as heavy use, whether you park your car on the street and being under 25 can all add to your insurance premium.
Some insurers will also take the colour of your car into consideration, where white is usually the cheapest to insure and black cars are the highest. Any vehicle modifications can also increase your costs.
If you have a history of traffic infringements or have ever had your licence suspended, you could be classified as a high-risk driver and could also face a higher than average car insurance cost in Sydney.
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Yes, as long as you’re the primary driver. If you’re not the main driver, this could be classified as car insurance fronting, which is fraudulent.
If you’re involved in an accident and get caught fronting, you risk having your claim rejected as well as being refused cover in the future, hefty fines or even jail time.
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Some insurers cover anyone driving your car, while others will expect you to pay an additional excess if a driver isn’t listed on the policy at the time of an incident. An age excess charge could also apply if they’re under 25 or have less than 2 years of driving experience.
Some insurers may exclude unlisted drivers altogether, so it’s a good idea to read your product disclosure statement and list any additional drivers that plan to use your car regularly.