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Media Release
The price of car convenience
New research reveals the hidden cost of car insurance.
It may be more convenient to avoid paying one big bill, but new research from iSelect has found Australian motorists who choose to pay monthly for car insurance may be spending hundreds more in the long run than those who pay annually.
The car insurance comparison service uncovered Australians could limit their total comprehensive car insurance spend by more than $150 on average in a year by paying annually – based on quotes for three popular models and an example driver profile. On average, the price difference was greater with a higher insurance premium. 11 Source: iSelect quoted comprehensive car insurance policies for three popular new vehicle models on 21 November 2025 with a next-day commencement date. We assumed a driver profile for a 35-year-old male living in Alderley, Brisbane with a 15,000km annual driving distance limit, no claims history, no vehicle modifications, no policy age restriction, and a $900 excess.
The research comes amid record high fuel prices, with paying annually and shopping around for a better car insurance deal being key ways to help cut running costs for motorists.
| Make & model | Paid annually – average quoted premium | Paid monthly – average quoted premium (annual cost) | Quoted difference |
| 2025 Toyota Corolla Ascent Sport (hatch) | $1,720.25 | $156.41 ($1,876.89) | -$156.64 |
| 2025 Ford Ranger XLT 4×4 Double Cab 2.0T | $2,113.30 | $192.26 ($2,307.09) | -$193.79 |
| 2025 Tesla Model Y RWD | $3,377.65 | $321.06 ($3,852.74) | -$475.10 |
iSelect comparison expert Sophie Ryan said paying by the month was typically pricier due to added fees from the insurers.
“Not everyone can afford to pay for their car insurance annually, but if you can, it’s worth doing. Otherwise, it could cost drivers more in the long term,” Sophie said.
“Paying by the month means more administrative costs for insurers, which is generally factored into premiums and subsequently passed onto consumers for most policies.
“It may be more convenient and manageable for consumers to pay in smaller amounts, but less so for insurers that need to process up to a dozen payments.
“But not all insurers hike premiums for monthly payments, so it’s worth shopping around if you can’t stump up a large sum annually.
“Ultimately, it depends on your financial situation and whether you’d prefer to tackle bigger costs on a monthly or yearly basis.”
When attributing this research, please reference: https://www.iselect.com.au/car-insurance/
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For media enquiries, please contact:
Sophie Ryan
Public Relations Manager
0437 028 104
Sophie is our Public Relations Manager and an experienced journalist who is passionate about making Aussies’ lives easier by saving them time, effort, and money.
As an accomplished media spokesperson and iSelect Comparison Expert, Sophie frequently appears on leading news and public affairs programs, including 7NEWS, Sunrise, and 9News, sharing commentary and research.
She also regularly writes articles for popular websites and publications on various personal finance topics, including insurance and utilities.
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About 
At iSelect, we’re passionate about making Aussies’ lives easier by saving them time, effort and money. We are Australia’s go-to destination for comparison across insurance, utilities and personal finance products made available from our range of providers. Our service is provided at no cost to the customer.
iSelect General Pty Ltd (ABN 90 131 798 126. AFSL 334115) has partnered with Compare the Market (ABN 83 117 323 378. AFSL 422926) to compare a range of car insurers and policies. Not all providers in the market or all policies offered by the partners are compared and not all policies or special offers are available to all customers.
A number of our participating general insurance brands are arranged by Auto & General Services Pty Ltd ACN 003 617 909 on behalf of Auto & General Insurance Company Limited 111 586 353, both of which are related entities of iSelect Limited. Our relationship with those companies does not impact the integrity of our comparison service. Click here to view iSelect’s range of providers.
Any advice provided by iSelect is of a general nature and does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of any information or general advice iSelect gives you, having regard to your personal situation, before acting on iSelect’s advice or purchasing any policy. You should consider iSelect’s Financial Services Guide which provides information about our services and your rights as a client of iSelect. iSelect receives commission for each policy sold that is a percentage of the premium or a flat fee. Ask us for more details before we provide you with any services.