When Does Vehicle Insurance Get Cheaper?

I'm 21 and dumb so I own two vehicles, a hail damaged 86 (2018) and a sporty 600cc motorcycle (2013).

I have compo on both vehicles. Thanks OzBargain for reinforcing the importance of having insurance!

Currently I pay $135monthly for the bike and $1935pa for the car. So roughly 3.5k in total yearly.

When can I expect my insurance to get cheaper? I've heard the general rule of thumb is after 25?


  • +13

    Buy cheaper cars and bikes. A 21yo with a sports bike and a sports car is basically giving money to insurance companies.

    Also, make sure you note the hail damage to the insurance company, because in the event of an accident, they might not cover you, so you are basically paying almost $2k a year to have it denied.

    • +1

      Second the hail damage advice. Insurance tried to decline an accident related claim due to undeclared hail damage. Fair Trading NSW helped.

    • Yeah that's good advice, Im with NRMA and have informed them the car is hail damaged and afaik they are the only insurer who do compo for hail damaged vehicles. As to your first point, I unfortunately love both the vehicles too much, especially my bike, it's always been my dream motorcycle :(

      • +3

        Another option would be to get coverage for the motorcycle that has a limited usage clause. If you only ride it every second or third weekend and leave it mostly unused over winter, maybe get coverage that takes this into consideration.

        I ride my bikes mostly over spring and summer and late autumn through winter I don’t ride, so I have 5,000km limit on my bikes and it virtually halves my insurance each year.

        • Yeah the limit is 5000km currently, I guess I'll just suck it up, it's fun and brings joy can't put a price on that.

  • +16

    When Does Vehicle Insurance Get Cheaper?

    When you no longer own them.

  • +2

    After 25 it starts coming down.
    If you're shifty you can put it down in your mums/dads name and be a secondary driver, although they can come down on you if they realise you're the main driver.

    • +3

      Since when? i'm 26 and insurance price hasn't changed since i've been on my full licence.

      Even if you put different ages in for basic quotes you won't see a difference.

      • I can only speak from my experience, but i did see a significant drop when i turned 25

    • Just how dodgy is this and how much could I save…?

    • +1

      @drakesy nope , they got smarter these days. if you list yourself as a secondary driver and put your details in your premium goes up on the quote.

    • @Drakesy - After 25 it does start to come down, but age of the vehicle also impacts premium. As the car gets older, the premium goes up.

      Between 25 and 26, I didn't notice a major difference in premium sadly. I honestly think these days it's 30+ when premiums become "reasonable"

  • +4

    Very much depends on the vehicle, and the company. Well worth shopping around - insurance on my ninja 650 varied between $35pm and $120pm for the exact same coverage with different providers.

    For some cars, they just don't get much cheaper. I'm now early 30's, and still pay $150pm for my 8yo BMW. Want cheap? Get a Toyota Corolla and a 50cc scooter.

  • +4

    When you 30+ and need a car that fits baby seat properly.

  • +1

    Basically - never - or you move to a rural area.

    back in the dark ages when I first got my license, each year you didnt make a claim you used to got a thing called - "No Claim Bonus" - your premium would drop each year until you made a claim

    Far too much of a golden goose now to have insurance companies thinking that way…

  • +6

    Suburbs can also play a big difference in insurance.

    • A lot of people underestimate this. I moved from a inner city suburb in Melbourne to a rural town in NSW and my bike insurance went from $900+/year down to about $350/year.

      Not saying to move house to save on insurance, but if people do move, especially if you move out of the city, make sure you get your insurance re-quoted to match the new area.

    • I live in classic suburbia, newish houses, low crime rate. So I makes sense on that front?

    • @Dasher / anyone want to tell me the premium for a 25 Y/O in bankstown area with a 2016+ onward subaru wrx STI , (͡ ° ͜ʖ ͡ °)

      • With 3 inch exhaust and front mount intercooler?

        • +1

          you know it

          don't forget the blow off valve for that bwarrpppp tssssu-tututututu

      • Just did a quick quote with NRMA for the guy in Bankstown - comes to only $5,526 pa.

    • +1

      I think even house location in the suburb can make a difference ie. corner, no thru-road with lots of pedestrian etc.

  • Currently I pay $1935pa for the car.

    How much is the car worth?

    • Around the 20k mark I think. Although covid tax might have pushed it up….?

      • For a hail damaged 86?!?!!!!

        • It's fairly new, only 3 years old now.

  • +1

    The Toyota 86 never really gets cheap even when 30. If you live an inner city area you are looking at $1000+ for comprehensive. Unless you don't care about the car you'll probably want comprehensive by default since it's so easy to write off one due to the rear quarter unibody work and aluminum panels.

    Always found it weird how it attracts P platers tbh. I get that it attracts young drivers due to the form and 'low' buy in price but has comparatively expensive upkeep for a first time driver.

    • They are very fun to daily drive I guess that's why? I do most of my own maintenance eg regular oil changes, brake fluid etc, so makes it cheaper to own?

      • +2

        Not necessarily about you, just a comment regarding my observations of younger drivers buying into it. Adds to immense outflows of cash at a stage in life when you have little of it.

        Good luck with your insurance. It's not a cheap car to insure relative to it's value.

        • Yeah makes sense, it's probably too fun with how quick it can lose traction for some of the more careless drivers.

  • It’s a sliding scale. The recalculate every year based on a bunch of factors. By the time it starts to get cheaper due to age, of inflation catches up and the price never ‘falls’.

  • +2

    If you have a vehicle for fun, or simply a fun vehicle, expect insurance to assume you drive stupidly, rightly or wrongly. So you will be expected to crash more often than average. Add in your male, and young. Money down the drain.

  • +1

    loyalty doesn't pay , shop around. i have been a member of NRMA for over 8 years and 60% no claims bonus and NRMA in most all the cases is more expensive then other insurers for myself.

    use ALL of the online quote calculators to try and find the best price and just go with the cheapest option.

    Here is one of them

    • Out of curiosity why are you still a member with them for over 8 years?

      • membership continues on even if you have basic roadside assistance with them

        i have generally had a good experience with their roadside so even if i did not have main insurance with them it still carries on.

        only recently now have i found that budget direct offer roadside assistance at just over HALF the amount nrma charges for their basic package , HERE. so when that lapses i will go with them in future , have never given them a ring yet thankfully but would be curious to see other peoples experience with them so far.

    • +6

      Didn't your mother ever teach you, if you didn't have anything nice to say, not to say anything at all?

      • +4

        Thinks the 86 is ugly but MG is a good deal??

    • +3

      This is the real AE86.

  • Don't take all quotes…shop around….I just go from one to another wanting a better deal. One told me $900 odd…virtually same insurance $490 with another.

  • +3

    Just out of curiosity I ran a quote through RACQ. Not knowing which model 86 you have, I chose GTS and MY18. I can get cover for $507.64pa. So I guess you need to be over 60 living in Brisbane, and with another RACQ MV policy in order to have it drop….
    Patience, grasshopper.

    • Looking forward to that pricing jeez!

  • +1

    Ah yes, the insurance premium black box algorithm.
    No one knows how it works but many factors.
    I checked general MV insurance Melbourne south east vs gold coast, 20% or more cheaper at the gold coast.
    Also premium of new 30k car vs 7yr old 15k car was not much different.
    Maybe it's like the Lotto.

  • +3

    Insurance companies used to employ on the road assessors. Mostly ex car repair guys who inspected cars in person to assess damage. It often meant claims took longer to get done but you knew the insurance companies were trying to limit their costs and by definition premiums. Nowadays it’s all done with photos from the repairers who can have a huge influence on the cost of repairs which flows into premiums. The insurance companies who are mostly office bound add in extras like rentals and charges for glass cover AND higher excesses making insurance in Australia ridiculous. The same companies own the NZ insurance MARKET yet the cost of insurance (and car rego) there is way cheaper. In short it’s a racket in Australia. You used to go to a body shop and it was almost a hard hat zone. Now you go into a repair company and it’s like going into a car dealership with plush waiting rooms and multiple receptionists, flash coffee machines and taxis stationed outside to take you home. All of this costs money and it is in the premiums. They are just bookies who can charge what they like because they know most responsible people will just accept it. All we want is the satisfaction that if we bang up our cars we won’t be out of pocket but we pay up front and then take it up the arse with high excesses followed by increased premiums if you make a claim. It’s time somebody took the industry to task for their rip offs. My 2c

    • Well one guy mentioned the insurance company wouldnt insure him anymore because he wasn't "profitable" so canceled insurance, so they're really there to make money off you, not save you when you actually have a crash….. Insurance is really a convenience for rich people…. Poor people like us probably know about this and probably why they dont have insurance….

    • The same companies own the NZ insurance MARKET yet the cost of insurance (and car rego) there is way cheaper.

      Uhhh…car rego is in NZ cheaper because rather than charging a large upfront rego + CTP fee, they just slug you on petrol taxes or a road user charge (therefore you regularly pay $2+ per litre for fuel).

      I punched my car's details into two New Zealand insurer's websites and they're…the same as what I pay in Australia for fully comprehensive insurance.

      For the levels of coverage (mostly >$1 million liability) we get here in Australia for our car and CTP insurance policies, we pay a pittance compared to most places, actually. Especially compared to North America. They pay about the same as us, but when you consider their mandatory minimum coverage in most states is less than $100k (versus Australia's $20 million) what they get is terrible.