Mozo Money Moves: Research reveals the surprising factors that could be driving up your car insurance premiums

Welcome to Mozo Money Moves, your weekly snapshot of the latest financial news, and what’s changed in personal finance.?

Car Insurance

This week, Mozo launched the Mozo Experts Choice Awards for Car Insurance, which our experts have been running for ten years now, to determine Australia's best value and best quality car insurance providers.

As part of the analysis, the research team analysed over 10,000 car insurance quotes, and compiled a report on the surprising factors driving up costs in 2023.

The report, Pedal to the Metal: What’s driving the cost of car insurance?, revealed that a driver’s location, age, and risk profile, alongside a car’s age, colour and brand can increase the average annual cost of car insurance by hundreds, sometimes thousands, of dollars.?

Download the PDF version of the report here

“It's only when you don’t have car insurance and something goes wrong, that you realise how important it really is, but that doesn’t mean you have to pay through the nose to get good cover,” Mozo expert Rachel Wastell explains.?

“As the cost of insurance continues to rise year on year, shopping around to get the best deal that suits your needs becomes even more important."

"There are also a number of factors that can dramatically change how much drivers pay for cover, so that pre-purchase research is paramount.”?

Mozo insights

• Considering getting roadside assistance with your car insurance? Read this first.
• Mozo expert Rachel Wastell featured on 4BC Brisbane to discuss the latest Car Insurance report
• Budget Direct wins Exceptional Value Insurer of the Year for the fifth time, offering lower premiums relative to competitors.

Home Loan Moves:

When it comes to home loans, the competition we’ve seen in the market over the past 18 months is likely coming to an end, with interest rates on home loans rising and cashback offers decreasing.

We are likely at or near the peak of the aggressive hiking cycle that started last year, so lenders are likely looking to rebuild net interest margins before rates start to come down again.

The new RBA Governor will lead the cash rate meeting as the new leader of Australia’s central bank next Tuesday, so all eyes will be on Michelle Bullock to see if her first cash rate move will be a hike.?

However, as Mozo’s banking and rates expert Peter Marshall says, ”The Reserve Bank has been saying for a long time that not driving us into a recession while slowing the economy is a narrow path, and it has been feeling like it’s achieved a landing on that narrow path.”

Mozo insights?

• Fixed home loans have been unattractive for a while, but with the RBA ready to hold rates, could they become competitive again?
• Lagging construction could lead to a shortfall of units. Can home buyers still get in the property door?
• From bonus Qantas Points to offset accounts and loyalty discounts, break the mortgage monotony with these home loans.

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