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How Much Is Car Insurance in Australia?
How Much Is Car Insurance in Australia?
Written by
Kervin Mathew
Edited by
Ellie Garran
Reviewed by
Adrian BennettHow are car insurance premiums calculated?
Insurers consider ‘risk’ as an overarching factor when calculating your car insurance premiums. Your risk profile is decided by a combination of circumstances unique to you, from the car you drive to where you live.
Age and gender
Younger drivers tend to pay more for car insurance simply because they’re statistically riskier to insure. Gender may also play a part as younger male drivers statistically fall into the higher risk category.
Where you live
If you live in a suburb with a high crime rate, it ups your level of risk. The same goes if you live in a busy suburb, as there tend to be more claims made in densely populated areas.
Your car
More expensive cars, sports cars, and modified cars can cost more to repair or replace. Cars that are less luxurious but prone to theft, such as a Commodore or a Hilux, might also attract higher premiums.
How you use your car
Your premium can factor in the number of kilometres you drive a year and whether you use your car for business (like a carshare platform). Both can increase your chances of making a claim.
Who drives your car
Adding more drivers to your policy can increase the level of risk associated with insuring your car, especially if the additional drivers are P-platers or have a chequered driving history.
Driving history
Insurers can be quite particular about past driving offenses, fines, and at-fault accidents. If your driving history ticks any of these boxes, insurers might see you as a high-risk driver and charge you a higher premium.
How much does comprehensive car insurance cost?
Comprehensive car insurance is designed to cover you in almost every situation – for example, if your car is damaged due to bad weather or in a hit-and-run, or even if you’re at fault in an accident. You’re also likely to unlock a bunch of exclusive features and optional extras that you don’t normally get with third-party cover.
In 2024, iSelect customers paid an average of $1,162 for comprehensive car insurance. Despite the higher price tag, a majority of iSelect customers prefer staying with comprehensive cover over switching to a cheaper level.
By state
Your state’s average premiums could give you an idea of what you might expect to pay for car insurance. This graph shows what iSelect customers paid for comprehensive car insurance in 2024.
Customers in New South Wales, Victoria, and the Northern Territory paid the highest car insurance premiums in the country.
By age
Drivers aged 18 to 24 paid an average of $1,842 a year for comprehensive car insurance – that’s $775 more than what someone over 45 would pay.
Younger drivers are considered a higher risk to insure because they have less experience behind the wheel. In fact, a younger driver’s general risk level peaks when they get their P-plates.
By gender
On average, male drivers paid an average of $1,484 for comprehensive car insurance, compared to the $1,393 paid by female drivers. Again, this comes down to risk profile – as a demographic, men are more likely to be caught speeding than women. (Sorry, men! We know you’re not all speed demons.)
Helpful tip
When you’re choosing car insurance, it’s all about weighing up cost versus coverage. A third-party property or third-party, fire, and theft policy can be a cheaper option because it generally wouldn’t cover accidental damage to your car. A comprehensive policy, though dearer, has wider coverage and, more importantly, can cover your car in almost every scenario. Plus, comprehensive cover can sometimes include pay as you drive cover, where you pay a lower premium if you drive within a certain number of kilometres during your policy term – it’s ideal if you don’t intend to spend too much time behind the wheel.
Adrian Bennett
General Manager for General Insurance
How much does third-party car insurance cost?
Depending on the type of third-party cover (and a whole heap of other factors!), you can expect to pay between $350 and $670 in annual premiums.1Based on iSelect car insurance sales, January – December 2024 There are two types of third-party cover to choose from.
- Third-party property insurance helps cover the cost of repairs for any damage you cause to someone else’s car or property. But in most instances, it won’t pay for repairs to your own car, should you get stuck with the bill.
- Third-party property, fire, and theft insurance can cover your car if it’s stolen or damaged by a fire, as well as covering repairs for damage to someone else’s car. But it generally won’t cover damage to your car caused by an accident.
Third-party car insurance may suit someone with a tighter budget or a car that’s seen better days.
By state
Based on iSelect’s car insurance sales in 2024, Victoria paid the most for third-party property and third-party, fire, and theft car insurance, spending an average of $626 to $760 a year on premiums – significantly more than its closest competitor, NSW, who paid average yearly premiums of $503 to $574.
In comparison, Queenslanders paid an average of $359 to $476 a year for third-party property and third-party, fire, and theft car insurance.
By age
When it comes to how many birthdays you’ve had, 18 to 24-year-olds feel the growing pains more than anyone else, paying a staggering $830 to $936 in annual premiums on average for third-party property and third-party, fire, and theft car insurance.
And what aging Aussies might’ve lost in youthful exuberance, they’ve gained in car insurance savings. Drivers aged 32 and older only paid between $485 and $570 a year for third-party car insurance.
By gender
Gender plays a big role in deciding car insurance premiums. Male drivers in Australia paid between $519 to $642 for their third-party car insurance policies, compared with the $505 to $600 paid by female drivers.
Keen to get car insurance costs under control?
With so many gears in motion, trying to get great coverage at a great price can be tricky. It probably doesn’t help that there are loads of insurance policies out there, each with its own combination of features and price tags! A simple way to reduce the cost of your car insurance premium is to choose a higher excess – just make sure you can afford to pay it come claim time.
Wherever you are on your car insurance purchasing journey, comparing policies is a great way to steer yourself into the right lane. Try out the iSelect comparison tool to narrow your search down to some competitive car insurance policies from our range of providers and get back in the driver’s seat!
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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.