Cheapest Cars to Insure in Australia - 2024 Guide

When buying a new car, it's important to consider not just the upfront price, but also the costs of insurance. The model of the car can greatly impact your insurance premiums. Factors such as the cost of repairs and replacement, safety rating, chance of theft, and modifications can all influence the cost of insuring a car. Additionally, the age of the driver, driving record, and where the car is parked can also affect insurance costs. In Australia, some of the cheapest cars to insure in 2024 include the Kia Picanto, Fiat 500, Suzuki Ignis, Toyota Yaris, and Kia Rio.

Key Takeaways:

  • The model of the car can greatly impact your insurance premiums.
  • Factors such as the cost of repairs and replacement, safety rating, chance of theft, and modifications can all influence the cost of insuring a car.
  • The age of the driver, driving record, and where the car is parked can also affect insurance costs.
  • In Australia, some of the cheapest cars to insure in 2024 include the Kia Picanto, Fiat 500, Suzuki Ignis, Toyota Yaris, and Kia Rio.

How is Car Insurance Premium Calculated?

Car insurance premiums are calculated based on various factors that help insurance companies determine the risk associated with insuring a particular car. These factors include:

  1. Cost of Repairs and Replacement: Insurers consider the cost of repairing and replacing parts for a specific car model. Cars with higher repair costs generally have higher insurance premiums.
  2. Likelihood of Accidents and Theft: Insurance companies assess the likelihood of accidents and theft based on historical data and statistics. Cars that are considered more prone to accidents or theft may have higher insurance premiums.
  3. Age of the Driver: The age of the driver is an important factor in calculating car insurance premiums. Younger and less experienced drivers may face higher premiums due to their perceived higher risk on the road.
  4. Car Model, Value, Age, and Condition: The car model, value, age, and condition all play a role in determining insurance premiums. More expensive cars, newer cars, and cars in poor condition may result in higher premiums.
  5. Driving Record: Insurance companies consider the driver's history of accidents, claims, and overall driving record. A clean driving record with no accidents or claims can lead to lower insurance premiums.
  6. Insurance History: Your insurance history, including the number of years you have been insured, can also influence your car insurance premium. Longer insurance history with no lapses or claims can result in lower premiums.

Insurance premiums are calculated by weighing these factors together to determine the overall risk associated with insuring a specific car. It's important to understand how these factors can impact your car insurance premium when requesting an insurance quote or comparing insurance options.

Factors That Determine the Cheapest Cars to Insure

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    When it comes to insuring a car, several key factors come into play. Understanding these factors can help you make an informed decision when choosing a vehicle that is affordable to insure.

    1. Cost of Repairs: The cost of repairs and replacement for a particular car model can greatly influence insurance premiums. Generally, more expensive cars often have higher insurance costs.
    2. Safety Rating: Insurers commonly consider the safety ratings of vehicles, which are determined by the reputable Australasian New Car Assessment Program (ANCAP). Cars with higher safety ratings are viewed more favorably by insurers.
    3. Chance of Theft: The likelihood of a car being stolen is a significant factor in insurance premiums. Certain car models may be more prone to theft and therefore have higher insurance costs.
    4. Modifications: Modifying your car, such as adding aftermarket parts or accessories, can impact insurance costs. Insurers may view modifications as increasing the risk associated with the vehicle, potentially resulting in higher premiums.
    5. Car Color: Yes, even the color of your car can affect insurance premiums. Surprisingly, white and yellow cars generally attract lower premiums than black cars, as they may be considered less prone to accidents or theft.

    By considering these factors, you can better understand why certain cars are more affordable to insure than others. Keep in mind that insurance premiums are determined by a combination of these factors, as well as your individual circumstances.

    Are Electric Vehicles Cheaper to Insure?

    As electric vehicles (EVs) gain popularity in Australia, many drivers wonder if they are cheaper to insure compared to petrol cars. While EVs are often more cost-effective to operate, their insurance costs may not always be lower.

    Insurance premiums are primarily determined by the value of the car and the potential cost of repairs or replacement. The type of engine, such as electric or petrol, is not the primary factor considered by insurers.

    If the value and repair costs of an EV are comparable to those of a petrol car, the insurance premiums can be similar. In some cases, EVs may even have slightly higher insurance costs due to the specialised parts and technologies involved.

    It's important to note that insurance providers assess each car individually, considering factors such as the model's safety features, theft risk, and repair costs. Therefore, the actual insurance rates for EVs can vary depending on these factors.

    Ultimately, when determining whether electric vehicles are cheaper to insure, it's crucial to consider the specific car model, its value, and repair costs, rather than solely focusing on the type of engine.

    How to Estimate Car Insurance Costs

    Estimating car insurance costs is an important step when considering the purchase of a new vehicle. To get an estimate of your car insurance costs, many insurance companies provide online tools that can help you calculate the potential expense. These tools typically require you to enter your car's make and model to generate an estimate of the insurance cost.

    It's essential to keep in mind that the insurance cost estimate may vary depending on your personal circumstances and the rating and underwriting policies of different insurers. Factors such as your driving record, age, and location can all influence the final insurance premium.

    One way to gain a better understanding of the potential costs is to compare insurance quotes from multiple providers. By gathering insurance quotes, you can evaluate the different offerings and find the best coverage at a competitive price.

    When estimating car insurance costs, it's crucial to consider not only the initial purchase price of the vehicle but also the ongoing expenses associated with the insurance premium. Taking into account these factors can help you make an informed decision about the affordability of a particular car.

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    List of Cheapest Cars to Insure in Australia

    Based on internal data from Youi's car insurance, some of the cheapest cars to insure in Australia in 2024 include:

    • Kia Picanto
    • Fiat 500
    • Suzuki Ignis
    • Toyota Yaris
    • Kia Rio
    • Mazda Mazda2
    • Toyota Corolla
    • Hyundai Venue
    • Kia Stonic
    • Suzuki Swift

    The annual insurance premiums for these cars can range from $544 to $1,405.

    The Cheapest Cars to Run in Australia

    According to the 2020 RACV's Driving Your Dollars survey, the Suzuki Baleno GL is considered the cheapest car to run in Australia. It is followed closely by the Suzuki Swift GL and the Toyota Yaris Ascent. These cars have low annual running costs, taking into account factors such as the initial purchase price, loan repayments, registration, insurance, fuel, tires, and maintenance.

    Factors That Influence Insurance Costs

    Various factors play a role in determining the insurance costs for cars. It's essential to understand these factors to make informed decisions when choosing a car and obtaining insurance coverage.

    Age of the Car

    The age of the car can significantly impact insurance rates. Older vehicles may have higher premiums due to potential wear and tear, increased repair costs, and higher chances of mechanical issues. Insurers consider older cars to be at a higher risk of accidents or breakdowns, resulting in higher insurance costs.

    Size of the Car

    The size of the car is another factor that affects insurance costs. Generally, smaller cars tend to have more affordable insurance rates compared to larger vehicles. This is because smaller cars are often associated with lower repair costs and are considered less of a liability on the road.

    Price of the Car

    The price of the car is a significant determinant of insurance premiums. Luxury vehicles, with their higher market value, often come with more expensive insurance coverage. Insurers consider the potential cost of repairing or replacing expensive parts, leading to higher premiums for luxury cars.

    Car Safety Ratings

    Car safety ratings also influence insurance costs. Vehicles with higher safety ratings, as determined by organisations like the Australasian New Car Assessment Program (ANCAP), are generally cheaper to insure. Car insurance providers assume that safer vehicles are less likely to be involved in accidents, resulting in reduced claims and lower premiums.

    Ease of Repairs

    The ease of repairing a car plays a role in determining insurance costs. Cars that are easier and less expensive to repair often have lower insurance premiums. When the repair process is straightforward and parts are readily available, insurance providers are more likely to offer more affordable coverage.

    Popularity Among Thieves

    The popularity of a car among thieves can also affect insurance costs. If a specific make and model have higher theft rates, insurance providers may increase premiums to protect against the higher risk of theft. Less popular cars may result in lower insurance costs due to the reduced likelihood of theft.

    When considering purchasing a car and obtaining insurance coverage, it's crucial to take these factors into account. Analysing the car's age, size, price, safety ratings, repair ease, and its popularity among thieves can help you make an informed decision and find suitable insurance coverage that meets your needs and budget.

    Factors That Influence Insurance Costs for Drivers

    Insurance costs for drivers are influenced by various factors. When it comes to determining your insurance premiums, several aspects related to your driving profile and personal circumstances are taken into account. These factors can affect the price you pay for car insurance and play a significant role in determining your premium.

    Driver Age

    Your age is one of the key factors that insurance companies consider when calculating your insurance rate. Younger drivers, particularly those under the age of 25, often face higher premiums due to their limited driving experience and statistical data that suggests they are more prone to accidents. As you grow older and gain more experience behind the wheel, your insurance premiums may decrease.

    Driver History

    Your driving history, including any previous accidents or traffic violations, can also impact your insurance costs. If you have a history of at-fault accidents or multiple speeding tickets, insurance providers may consider you a higher risk, resulting in higher premiums. On the other hand, a clean driving record with no claims or violations can help lower your insurance costs.

    Years of Driving Experience

    The number of years you've been driving is another factor that insurers take into consideration. Generally, the more experience you have on the road, the lower your insurance premiums may be. This is because experienced drivers are often seen as being less likely to engage in risky driving behavior or be involved in accidents.

    Driving Frequency

    How often you drive can also impact your insurance rate. If you use your car for commuting long distances or drive frequently, you may face higher premiums compared to someone who only drives occasionally. Insurance providers assess the likelihood of accidents and claims based on the amount of time spent on the road.

    Insurance Provider

    The choice of insurance provider can also influence the cost of your car insurance. Different insurance companies have their own methods of assessing risk and calculating premiums. It's a good idea to compare quotes from multiple insurance providers to find the one that offers the best coverage at the most competitive rate for your specific driving profile.

    By understanding how these factors influence insurance costs, you can make informed decisions when selecting a car insurance policy that suits your needs and budget. Whether it's considering the impact of your age, driving history, years of experience, driving frequency, or the choice of insurance provider, taking these factors into account will help you secure affordable coverage.

    The Importance of Choosing a Car Based on Insurance Costs

    When buying a car, it's important to consider the insurance costs associated with the vehicle. Choosing a car with a lower insurance rate can help you stay within your car budget. Factors such as the car's age, size, price, safety ratings, and repair ease can all influence insurance costs. By taking insurance costs into account, you can make an informed decision and ensure that the overall costs of owning a car are manageable.

    The Top Five Least Expensive Cars to Insure

    When it comes to finding the least expensive cars to insure in Australia, there are a few standout models that offer affordable insurance rates. According to Compare the Market, these top five cars provide reliable and cost-effective choices for drivers:

    1. Mazda CX-5: The Mazda CX-5 is known for its stylish design, versatility, and safety features. It offers competitive insurance rates due to its strong safety ratings and ease of repairs.
    2. Skoda Scala: The Skoda Scala is a compact car that offers great value for money. With its efficient engine and advanced safety features, it attracts lower insurance premiums.
    3. Citroën C3: The Citroën C3 is praised for its distinctive design and comfortable ride. It offers affordable insurance rates due to its low market value and solid safety record.
    4. Hyundai i30 Sedan N Line: The Hyundai i30 Sedan N Line combines sporty style with practicality. It offers competitive insurance rates thanks to its strong safety ratings and reasonable repair costs.
    5. Mazda CX-3: The Mazda CX-3 is a popular choice for those seeking a compact SUV. Its good safety ratings and affordable repair costs contribute to its attractive insurance premiums.

    These cars have been selected based on factors such as market value, safety ratings, ease of repairs, and overall affordability. By opting for one of these models, you can benefit from lower insurance costs while enjoying the features and performance they offer.


    When it comes to car insurance, several factors come into play in determining the premiums. The cost of repairs, safety ratings, theft risk, and market value of the car all influence insurance costs. Additionally, the age of the driver, driving history, and choice of insurance provider can affect insurance rates.

    By considering these factors, drivers can make informed decisions when choosing a car that aligns with lower insurance rates. Opting for cars with lower repair costs, higher safety ratings, and lesser chances of theft can help reduce insurance premiums. It's also important for drivers to maintain a clean driving record and choose insurance providers that offer competitive rates.

    Ultimately, by understanding the factors that influence insurance costs and making choices that work in your favor, you can save significantly on car insurance. Whether it's choosing one of the cheapest cars to insure or taking steps to reduce risk factors, being proactive can have a positive impact on your wallet.

    So, before making a car purchase, take the time to research and consider the various factors that influence insurance costs. By doing so, you can make sure that your choice aligns with affordable insurance premiums and helps you stay within your budget.

    How Driva Can Help You Finance Your Next Vehicle Purchase 

    When you’re buying a new 2023 car, it’s important to consider the cost of car insurance as it can significantly impact the cost to insure. Some cars are more expensive to insure than others, so it’s essential to choose the best car that has a lower car insurance rate. Driva can help you finance your next vehicle purchase by providing transparent and no hidden fees, personalised rates, and comparing 30+ lenders so you get the best rate. Driva takes into account the value of your car, the type of car you want to insure in 2024, and the impact it will have on your car insurance. By comparing car insurance quotes, you can find the cheapest car insurance for the new or used car you are buying, as well as any car insurance discounts available. Driva can help you find the cars with the cheapest and comprehensive car insurance, making it easier to find a car cheaper to insure.

    Frequently Asked Questions

    What are the factors that determine whether a car is expensive to insure?

    The cost of car insurance is influenced by various factors such as the car's make and model, its safety ratings, repair costs, and likelihood of theft.

    How can I find the cheapest cars to insure in 2024?

    To find the cheapest cars to insure in 2024, consider cars with low repair costs, good safety features, and a lower likelihood of theft. You can also consult car insurance companies for their recommendations.

    Are there specific cars known to be cheaper to insure in 2023?

    Yes, some cars are generally known to have lower insurance rates due to their safety features, low repair costs, and lower theft rates.

    What steps can I take to get cheaper car insurance?

    You can get cheaper car insurance by maintaining a clean driving record, parking your car in a safe location, and choosing a car that is less expensive to insure.

    Does the car I choose significantly affect my car insurance rate?

    Yes, the car you choose can have a significant impact on your car insurance rate. Cars with low repair costs and good safety ratings are often cheaper to insure.

    How can I ensure that my new car will cost less to insure?

    When buying a new car, consider its insurance cost by choosing a model with good safety ratings, lower repair costs, and a lower likelihood of theft.

    Which are the most expensive vehicles to insure in 2024?

    The most expensive vehicles to insure in 2024 are typically those with high repair costs, poor safety ratings, and a higher likelihood of theft.

    Philana Kwan

    Philana Kwan is the marketing coordinator at Driva she has a demonstrated history in customer service excellence and is knowledgeable in all things car and finance related. When she’s not working Philana enjoys learning new things and keeping up with the latest trends in marketing and technology.

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