What Are the Cheapest Cars in Australia to Insure

What Are the Cheapest Cars in Australia to Insure

Purchasing a car can be exciting, especially after you have invested time and effort in researching cars and taking test drives. Before you apply for your loan and sign on the dotted line, you should take a look at the cost of insuring your new set of wheels. Knowing how much you can afford to spend on insurance will help you make a smart decision when choosing a car.

Depending on your budget, you may want to set your sights on a car that has a less expensive insurance rate. Some aspects determining the cost of car insurance include,

    • Age of the Car – The age of your car can lower your insurance costs up to a point. Some insurers are reluctant to insure older vehicles with poor safety ratings. Also, if the car you want to insure is so old it is considered a classic, you are in another auto insurance category.
    • The Size of the Car – You may dream of driving down the road in an impressively equipped Landcruiser, but you will have an equally impressive insurance bill along for the ride. Many well-equipped compact and subcompact cars will take less of your paycheck to cover. If you are budget conscious, set your sights on a reasonably sized vehicle for your lifestyle.
    • The Price of the Car – Just as buying a king-sized vehicle will increase your insurance rates, buying a top tier luxury car will give you much higher premiums.

When you start the decision-making process, it is often helpful to consult one of the many lists that rank the least expensive cars to insure.

car loan cta

Cheapest Cars to Insure In Australia

According to an analysis published by Compare the Market, the top five least expensive cars to insure are:

  1. Mazda CX-5
  2. Skoda Scala
  3. Citron C3
  4. Hyundai i30 Sedan N Line
  5. Mazda CX-3

When you look at the list and compare the cost of the vehicle and the annual insurance cost, you will see that the cheapest cars do not always have the lowest price. Insurance companies weigh numerous factors when calculating your price. For example, insurers consider both the vehicle and the primary driver when calculating the cost of insurance.

Automotive Factors That Influence the Cost of Insuring Your Car

  • Market Value of Your Car – Your car’s value plays a large part in the price of your insurance.
  • Your Car’s Safety Ratings – You should consider cars with at least a four-star rating, whether you are buying new or used.
  • Ease of Making Repairs – If the make and model of the car you are considering is known for costly or complicated repairs, you will pay more to insure it.
  • Modifications on Your Car – While modifications can turn an ordinary car into an extraordinary car, they will likely raise your insurance rates. Your insurance may not cover modifications that increase the car’s performance. You should explain any changes to your insurer to be sure you have coverage.
  • The Insurer’s Familiarity with the Make and Model – Usually, once insurers have a collection of data regarding the car and its performance, they can gauge the risks inherent in the vehicle.
  • The Popularity of the Car – The reasoning here is that finding parts to repair a popular car is faster and cheaper than searching out parts for a rare vehicle.
  • How Often is Your Make and Model of Car Stolen – If your car is near the top of car thieves’ wish lists, you will pay a higher premium to insure it.

Signing car insurance documents.

Personal Factors That Influence the Cost of Insuring Your Car

The car you choose has a great deal of influence over your insurance costs. However, it is important to remember that potential insurers have many driver-related elements that go into determining your insurance rate. Here are five crucial factors insurance companies consider when determining your rate.

  1. Driver’s Age – How old you are will significantly impact the cost of your auto insurance. Whether you see it as fair or not, males under the age of 20 will pay the most for their insurance. Between the age of 20-25, the cost of insurance often lowers, and premiums will reach their lowest point when a driver is in their mid-50s. Insurers are interested in mitigating risks and following long-standing patterns of behaviour is one way to do that.
  2. The Driver’s History – Have you gathered more than your fair share of insurance claims? If so, you can expect your insurance costs to rise no matter your age.
  3. Years of Driving Experience – Insurance providers see drivers with many years behind the wheel as less risky than new and inexperienced drivers.
  4. How Much You Drive – With all other factors being equal, a driver who spends more time on the road has a greater chance of claiming a driver who drives significantly less.
  5. The Insurance Provider – Not all insurance companies are created equal. This is why it is good to compare rates before deciding on a company. If you are unsure about your best option, Loans Unlimited works with a network of top insurance providers and would gladly help you understand your options.

Sorting out the financial aspects of buying and insuring a car can be challenging. If you need guidance about the best car for your budget, or if you would like to arrange an appointment to speak with one of our loan experts, feel free to contact Loans Unlimited. Our team of professionals can help guide you through the processes involved and help you get the best deal possible.