Buying & finance process
Car insurance costs going up? Practical ways to take back some control
26 September 2026 · 5 min read
For many drivers, car insurance renewals have become noticeably more expensive. You can't control what insurers charge, but you can make sure you understand what you're paying for and that you're not simply rolling over the same policy without checking. Here are some general pointers. We're a finance broker, not an insurer, so we don't recommend particular insurers or policies.
Know the types of cover
Compulsory third party (CTP) insurance covers injury to other people and is required for registered vehicles. How it's arranged varies by state. In Queensland, for example, it's paid with your rego. Beyond that, the main options are third party property, third party fire and theft, and comprehensive cover, which also covers damage to your own car.
If your car is financed
When a car is used as security for a loan, lenders typically require it to be comprehensively insured for the life of the loan, because the car protects their lending. Some lenders have requirements about the type of policy or how the financier is noted on it, so check your loan conditions before changing insurers or reducing cover.
Agreed value or market value?
Comprehensive policies are commonly offered on either an agreed value, where you and the insurer settle on an amount upfront, or a market value, which is decided at the time of a claim. The difference matters most if the car is written off or stolen, particularly if you still owe money on it. Understand which you have and whether the amount would cover what's owing on your loan.
Practical steps at renewal
Rather than letting the policy auto-renew, set aside some time to:
- Compare the new premium with last year's, and ask the insurer to explain any big increase
- Check the sum insured, the excess and the listed drivers are still right
- Ask whether paying annually costs less than paying in instalments
- Consider whether a higher excess suits your budget, knowing you'd pay more if you claim
- Shop around, or speak to an insurance broker who can compare policies for you
- Read the product disclosure statement for definitions that matter where you live, such as how flood and storm are covered
Don't cut cover you actually need
Dropping cover to save money can backfire badly if something goes wrong, especially on a financed car where you'd still owe the lender. Make sure any change still meets your loan conditions and leaves you comfortable with the risk.
General information only
This article is general information only. It does not take your personal circumstances into account and is not personal credit, legal, tax or financial advice. It is not insurance advice. Finsterl Finance is not an insurer and does not recommend specific insurers or policies. Always read the product disclosure statement and consider whether a policy suits your needs. Lender insurance requirements vary, and all finance is subject to lender assessment and approval.
The Finsterl view
Insurance is part of the true cost of owning a car, and it's worth factoring in before you buy. If you're budgeting for a new vehicle and want help with the finance side, call the Finsterl Finance team on 1300 508 827 or send us an enquiry. All finance is subject to lender assessment, eligibility criteria, terms and conditions.
Related finance
All finance is subject to lender assessment, eligibility criteria, terms and conditions. Rates and fees depend on individual circumstances.
Want this applied to your situation?
A dedicated professional will walk you through the options that actually fit.