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The cost of car insurance has risen by almost 6% over the past year, but drivers could save, on average, $692 by switching to a new provider.
Our 2025 Car Insurance Star Ratings and Awards research, based on the analysis of over 67,000 quotes, found the average cost of comprehensive car insurance has increased by $122 over the past 12 months.
While prices are still accelerating, similar quoting between 2023 and 2024 revealed a much sharper year-on-year jump of 30.5%.
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| Average annual car insurance premium | ||
|---|---|---|
| 2024 | 2025 | Increase |
| $2,104 | $2,226 | +$122 (+5.8%) |
Source: Canstar. Based on comprehensive policies rated in Canstar’s 2024 and 2025 Car Insurance Star Ratings. Premiums include quotes for both new and used cars for a range of scenarios, with a state-specific target excess ranging from $800 to $1,000.
Victorians are feeling the pressure more than most
Victorian drivers are, on average, paying the most for their comprehensive car insurance at $2,940. They have also been hit with the steepest annual increase, with premiums rising, on average, by $225 or 8.3% year-on-year.
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| Average annual car insurance premiums by state | |||
|---|---|---|---|
| State | 2024 | 2025 | Increase |
| New South Wales | $2,430 | $2,570 | +$140 (+5.8%) |
| Northern Territory | $2,189 | $2,283 | +$94 (+4.3%) |
| Queensland | $1,901 | $2,010 | +$109 (+5.7%) |
| South Australia | $1,881 | $1,970 | +$89 (+4.7%) |
| Tasmania | $1,710 | $1,785 | +$75 (+4.4%) |
| Victoria | $2,715 | $2,940 | +$225 (+8.3%) |
| Western Australia | $1,885 | $2,032 | +$147 (+7.8%) |
Source: Canstar. Based on comprehensive policies rated in Canstar’s 2024 and 2025 Car Insurance Star Ratings. Premiums include quotes for both new and used cars for a range of scenarios, with a state-specific target excess ranging from $800 to $1,000.
Mature drivers experience the biggest price rises, but they’re not paying the most
Mature drivers have experienced an average increase of 6.5% in their comprehensive cover over the past year.
Still, they’re not paying the highest premiums overall. That title goes to young male drivers under 25, who face average annual premiums exceeding $3,000. Their higher accident rates make them a greater risk for insurers, pushing up premiums well above those of other driver types.
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| Average annual car insurance premiums by driver | |||
|---|---|---|---|
| Driver | 2024 | 2025 | Increase |
| Under 25 female | $2,550 | $2,706 | +$156 (+6.1%) |
| Under 25 male | $2,858 | $3,020 | +$162 (+5.7%) |
| 25 to 29 | $2,056 | $2,176 | +$120 (+5.8%) |
| 30 to 49 | $1,529 | $1,607 | +$78 (+5.1%) |
| 50+ | $1,183 | $1,260 | +$77 (+6.5%) |
Source: Canstar. Based on comprehensive policies rated in Canstar’s 2024 and 2025 Car Insurance Star Ratings. Premiums include quotes for both new and used cars for a range of scenarios, with a state-specific target excess ranging from $800 to $1,000.
How to beat the annual increase
Drivers willing to switch insurers could save hundreds on their comprehensive car insurance. Someone paying an average premium of $2,226 who switches to one of Canstar’s top-rated policies could potentially save $692 in one year.
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| Average annual car insurance premiums compared to top-rated | ||
|---|---|---|
| Average | Average of 5-Star Rated | Difference |
| $2,226 | $1,534 | -$692 (-31.1%) |
Source: Canstar. Based on comprehensive policies rated in Canstar’s 2024 and 2025 Car Insurance Star Ratings. Premiums include quotes for both new and used cars for a range of scenarios, with a state-specific target excess ranging from $800 to $1,000.
Victorians, on average, stand to benefit the most from shopping around. Research shows a driver in this state who switches from the average priced policy to a Canstar 5-Star Rated policy could save $967.
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| Average annual car insurance premiums compared to top-rated – by region | |||
|---|---|---|---|
| State | Average | Average of 5-Star Rated | Difference |
| New South Wales | $2,538 | $1,683 | -$855 (-33.7%) |
| Northern Territory | $2,283 | $1,645 | -$638 (-27.9%) |
| Queensland | $2,010 | $1,429 | -$581 (-28.9%) |
| South Australia | $1,970 | $1,316 | -$654 (-33.2%) |
| Tasmania | $1,785 | $1,284 | -$501 (-28.1%) |
| Victoria | $2,940 | $1,973 | -$967 (-32.9%) |
| Western Australia | $2,032 | $1,402 | -$630 (-31.0%) |
Source: Canstar. Based on comprehensive car insurance policies rated in Canstar’s 2025 Car Insurance Star Rating. Premiums include quotes for both new and used cars for a range of scenarios, with a state-specific target excess ranging from $800 to $1,000.
Young male drivers – who face the steepest premiums out of the driver groups – could save as much as $1,000.
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| Average annual car insurance premiums compared to top-rated – by driver | |||
|---|---|---|---|
| Profile | Average | Average of 5-Star Rated | Difference |
| Under 25 female | $2,706 | $1,895 | -$811 (-30.0%) |
| Under 25 male | $3,020 | $2,020 | -$1,000 (-33.1%) |
| 25 to 29 | $2,176 | $1,553 | -$623 (-28.6%) |
| 30 to 49 | $1,607 | $1,211 | -$396 (-24.6%) |
| 50+ | $1,260 | $957 | -$303 (-24.0%) |
| Family | $2,747 | $1,731 | -$1,016 (-37.0%) |
Source: Canstar. Based on comprehensive car insurance policies rated in Canstar’s 2025 Car Insurance Star Rating. Premiums include quotes for both new and used cars for a range of scenarios, with a state-specific target excess ranging from $800 to $1,000.
Canstar’s top-rated car insurance providers for 2025
Our Car Insurance Star Ratings and Awards highlight the providers offering outstanding value to Australian drivers, based on a comprehensive comparison of price and policy features.
The Star Ratings help motorists identify high-performing policies, while the Outstanding Value Awards recognise insurers with the strongest overall performance across various driver types. Additionally, the Most Satisfied Customers Car Insurance Claims Award recognises the insurer with the highest combined score for claims satisfaction and claims features nationwide.
This year, we rated 51 car insurance products from 43 providers, identifying seven winners.
- Outstanding Value Award: Bingle, Budget Direct, ING, ROLLiN’ Insurance, Virgin Money
- QLD, NSW, VIC, TAS, SA: ROLLiN’ Insurance
- WA: Bingle
- NT: Australia Post
- Most Satisfied Customers Car Insurance Claims: RAA
Canstar’s data insights director, Sally Tindall says, “This year’s premium increases might not have been as steep as previous years for many drivers, but a 5.8 per cent hike isn’t exactly easy to swallow.”
“One of the biggest mistakes drivers can make is viewing their annual renewal notice as a tick and flick exercise. Instead, your notice should be seen as a reminder to do a quick comparison.
“Our research shows drivers taking out a new policy can potentially save $692 by switching from an average priced premium to a Canstar top-rated one. That’s an average saving – those who have copped price hikes from their insurer for years could stand to save even more.
“When shopping around for insurance, price is important, however, it’s not necessarily about getting the lowest price policy in town. You want to be looking for value for money, that is, a decent level of cover at a competitive price.
“The research team at Canstar has compared an astonishing 67,000 quotes across 43 different providers, assessing both the cost and what’s included for each one to help drivers identify good-value options.
“There are also other ways to reduce your premium, like increasing your excess, removing additional drivers who no longer use the car and maintaining a clean driving record.
“It’s also worth checking if your insurer offers discounts for infrequent and safe drivers. For example, ROLLiN’ Insurance uses a ‘Safe ‘n Save’ app that assesses things like a driver’s acceleration and braking with a discount of up to 15 per cent on offer based on your score.
“For people on an ultra-tight budget, the temptation might be to ditch their comprehensive insurance altogether, however, a quick check could potentially see you keep your insurance, with a higher level of cover at a lower price – all in one simple switch.”
Cover image source: alexgo.photography/Shutterstock.com
