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Car Insurance Calculator
Car Insurance Calculator
Written by
Kervin Mathew
Edited by
Andrew Kemp
Reviewed by
Adrian BennettCompare car insurance policies the easy way
Save time and effort by comparing a range of car insurance quotes with iSelect
Long story short
The best way to estimate your premium is to get a quote
Use a comparison tool to check multiple insurers and find the right policy in minutes.
Car insurance premiums depend on multiple personal and external factors
Your age, type of car, driving experience, location, and claim history are just some of the factors that can influence what you pay.
Comprehensive insurance offers the highest level of protection
A comprehensive policy covers a wide range of incidents including damage to your car in an at-fault accident and weather damage, plus additional features such as new car replacement.
Comparing policies can help you find the right cover
Consider your driving habits, budget, and optional features before choosing a policy.
How is my car insurance calculated?
Insurance companies may consider a variety of factors when calculating your premiums – combining your personal circumstances with the wider context.
Age and driving experience
Drivers under 25 tend to pay higher premiums because they’re statistically more likely to be involved in car accidents.
Premiums are likely to begin falling for drivers once they leave that age bracket, but may increase again for senior drivers. Older drivers may face higher car insurance costs owing to age-related risk factors, such as slow reaction times and poor eyesight.
Insurers may also consider how long you’ve had your licence and calculate your premium accordingly, with more experience giving you a better chance of paying a lower premium.
Where you live
Urban areas with heavy traffic can attract higher premiums. Rural areas might have lower rates, owing to lower congestion and fewer accidents, but insurers may also consider the quality and safety of surrounding roads.
Australia’s sometimes-extreme weather conditions can also have a say. For example, Queensland has experienced significant weather-related disasters since 2010. Because of this, someone buying car insurance there might pay more than somebody in calmer South Australia.
Type of cover
That’s right, your insurance company can also calculate your premium based on your level of cover.
Third-party car insurance is designed to cover only third-party damage and generally doesn’t include cover for your car. This is why it can be a cheaper car insurance option.
On the other hand, while comprehensive cover offers the highest level of cover, it’s generally more expensive. It’s also worth considering things like agreed value cover and optional extras – such as choice of repairer – as those can also push the needle on premiums.
Your car and how you use it
More expensive cars are likely to cost more to insure, with insurers factoring in both repair and replacement costs. On the other hand, safety features such as blind spot monitoring, driver assist, collision warning, and reversing cameras can help lower premiums.
If you use your car for business or ridesharing, it could mean that you’re on the road more often. This increases your risk of being in a motor accident and may mean you need to pay a higher premium. Some policies may even reward you with lower premiums if you rarely drive your car, as the amount of risk you’re exposed to is below average.
Your driving and claim history
Your driving history reveals how safe a driver you are, and insurers can use this to determine your premiums. Accidents, speeding, and other driving offences can raise your premiums significantly. Drivers with clean records might enjoy lower car insurance costs.
When deciding your premium, insurers might consider the number of claims you’ve made as an indicator of how likely you are to make a claim. So, if you’ve submitted several claims in the past, insurers might increase your car insurance premium to offset any perceived risk increase.
Where do I find a car insurance calculator?
Thinking it might be time for a new policy and looking for a nifty car insurance calculator? Well, there’s no sure-fire way to calculate your car insurance policy premium without getting an actual policy quote online or over the phone.
Luckily, getting a car insurance quote isn’t hard – you just need some basic info like your car’s registration, your address, and the level of cover you want to begin your search. That said, finding the right policy for you can feel like a marathon if you’re comparing policies individually.
Instead, give our handy car insurance comparison tool a go. It can help you compare policies from a range of Australia’s well-known car insurers – all in one place. And if you want to sign up with one, we can do that for you in minutes. Start comparing today!
What are the different types of car insurance?
Helpful tip
Something like a fully loaded comprehensive policy is understandably not the cheapest cover around. But if you think about the exclusive features it brings to the table, such as new car replacement, which can effectively take out the depreciation factor when it kicks in, you could get far more potential value for your money. And if you’re still keen on not paying too high a premium, a pay as you drive or low-kilometre policy might be your ticket to saving on car insurance costs without compromising on the benefits of comprehensive insurance.
Adrian Bennett
General Manager for General Insurance
How do I find a car insurance policy for my needs?
Finding the right car insurance for your needs starts with understanding what those needs are and then comparing the available options. Spending some time now to consider what level of cover you need could pay off in the long run. So, here are some things to consider before committing to a policy.
Cover for at-fault accidents and weather damage
Accidents can happen to anyone and at any time Even the most careful drivers can have a very bad day and there’s no telling what Mother Nature might throw your way.
If you’re not one to rely on luck, consider a policy that covers you even when you’re at fault in an accident or if you live somewhere with frequent extreme weather events.
Market value vs agreed value
If your car is stolen or written off, your car insurance company might pay you out for the loss, depending on your choice of cover.
A policy with market value cover will pay you out for how much your car would sell for on the open market at the time it was written off.
With an agreed value policy, you and your insurer can decide a payout amount that’s locked in over the policy’s term, giving you greater financial certainty.
Optional extras
Optional extras are handy if you want to boost the level of cover and get some added peace of mind. Consider whether or not you’ll need:
- reduced excess (or zero-excess) windscreen or window glass cover
- a hire car following an at-fault accident
- the option to choose a repairer outside the insurer’s network.
Typically, optional extras can add to your premium, so consider each carefully before you add them to your policy.
Driving habits and lifestyle
Consider how you use your car. If you don’t drive all that much, you might benefit from a pay as you drive policy. Alternatively, if you’re a big fan of road trips, spend a lot of time driving through rural Australia (or just driving in general), a policy with excess-free animal collision cover or roadside assistance might suit you more.
A policy that offers personal effects cover might prove useful if you need to keep belongings in your car or if it’s fitted with child seats or baby capsules.
Your premium
Your premium is possibly the one make-or-break factor that helps you decide whether to buy a policy. And with car insurance costs increasing since 2019, it’s important to keep your eye on the market.1Insurance Council of Australia – Motor Insurance Policy Paper: A Roadmap for Reducing Rising Premiums, p3
One way to make sure you’re getting your money’s worth is to compare car insurance policies to avoid paying more than is necessary.
If you want to leave no stone unturned, it can also be helpful to go through the relevant product disclosure statement (PDS) and other policy documents, such as the target market determination (TMD), which might provide some general insights into who a policy might suit.
How can I save on car insurance costs?
Pay your premium up-front
By paying for your policy annually instead of monthly or fortnightly, you could pay a lower premium by avoiding the processing fees attached to each instalment.
Set driver restrictions
As younger or learner drivers are statistically more likely to crash, restricting your car to experienced or older drivers could help lower your risk level and your car insurance costs.
Choose a higher excess
Choosing to pay a higher excess – your out-of-pocket costs on a claim – can help lower your premium. Be sure to pick an affordable amount, though.
Keep your car secure
Parking your car in a safe spot – like a lock-up garage, under a carport, or even in a well-lit area – can reduce the risk of it being damaged or stolen. Insurers may also factor in more secure parking locations when calculating your premium.
Be a safe and sensible driver
Your insurer might see you as high-risk if you’ve broken traffic rules or made a few car insurance claims. So, a clean driving record goes a long way toward keeping your premiums in check.
Compare policies regularly
Shopping around regularly can help ensure that you’re getting a good deal on your car insurance, as opposed to sticking with one insurer just for the sake of convenience.
What’s an easy way to compare policies from multiple insurers?
Great question (even if we did ask it ourselves!). It can be a task and a half combing through multiple insurance products and their PDSs and TMDs, looking at benefits, considering exclusions and whatnot. Fortunately, we might be able to take some of the effort out of comparing multiple insurers.
Jump onto our car insurance comparison tool and provide a few details so we can narrow down the type of cover you’re after. And hey presto! You can compare various polices from our range of Australia’s well-known insurers. We can even go the extra mile and sign you up with your preferred policy in a matter of minutes.
Get started on comparing car insurance policies!
Save time and effort by comparing a range of car insurance quotes with iSelect
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.