What’s the average cost of comprehensive car insurance in Australia?
The cost of car insurance ranges from $1,800 to more than $2,900 per year on average, according to Canstar Research. However, younger drivers might find themselves paying significantly more than their older counterparts.
Female drivers aged under 25 pay an average of $2,706 per year, and that figure jumps to $3,020 for males aged 25 and under. Drivers aged between 25 and 29 years pay an average of $2,176 for car insurance, those aged 30 to 49 years pay $1,607, and those over 50 years pay $1,260 on average.
The cost of car insurance can also differ across states and territories. Data from Canstar’s most recent Car Insurance Star Ratings and Awards shows comprehensive car insurance premiums climbed nearly 6% across Australia in 2025, with Victorian drivers enduring the steepest price hikes.
Average comprehensive car insurance costs: state-by-state breakdown
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| State or territory | 2025 | Increase (%) | Increase ($) |
|---|---|---|---|
| New South Wales | $2,570 | 5.76% | $140 |
| Northern Territory | $2,283 | 4.29% | $94 |
| Queensland | $2,010 | 5.73% | $109 |
| South Australia | $1,970 | 4.73% | $89 |
| Tasmania | $1,785 | 4.39% | $75 |
| Victoria | $2,940 | 8.29% | $225 |
| Western Australia | $2,032 | 7.80% | $147 |
| Overall Average | $2,226 | 5.86% | $126 |
Source: www.canstar.com.au – 27/05/2025. Based on comprehensive car insurance policies rated in Canstar’s 2024 and 2025 Car Insurance Star Ratings respectively. Premiums include quotes for both new and used cars for a range of scenarios, with a state-specific target excess ranging from $800 to $1,000.
How age affects the average cost of car insurance
The average cost of comprehensive car insurance is higher for younger drivers than older ones. Drivers aged under 25 years pay the highest average premiums.
Interestingly, however, older drivers saw the biggest increase in premiums in 2025, with costs lifting 6.51% on average for those aged 50 and older.
Australian car insurance: average premiums by age
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| Age profile | 2025 | Increase ($) | Increase (%) |
|---|---|---|---|
| Under 25 year old Female | $2,706 | $156 | 6.12% |
| Under 25 year old Male | $3,020 | $162 | 5.67% |
| 25 to 29 year olds | $2,176 | $120 | 5.84% |
| 30 to 49 year olds | $1,607 | $78 | 5.10% |
| 50+ | $1,260 | $77 | 6.51% |
Source: www.canstar.com.au – 27/05/2025. Based on comprehensive car insurance policies rated in Canstar’s 2024 and 2025 Car Insurance Star Ratings respectively. 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.
Do men pay more for car insurance than women?
While it might seem unfair, gender does play a role in the cost of your car insurance premiums, but it’s not the only factor at play. Ultimately, insurers want to collect more in premiums than they pay out in claims. When pricing premiums, they weigh the likelihood of a driver making a claim against the cost of their policy.
Car insurers generally view younger men as at greater risk of making a claim than younger women, while older men are often seen to be less risky than older women.
To get a better idea of how gender can affect premiums, we put together some standardised assumptions with a target excess of $890-$1,000. Our analysis found men aged 34 paid an average of $79 more per year than women of the same age. That said, the ‘gender gap’ varied heavily between providers. Some actually charged women as much as $20 more per year, and at the other end of the scale, some charged men up to $191 more.
Average comprehensive car insurance cost by gender
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| Gender | Average Monthly Car Insurance Cost | Average Annual Car Insurance Cost |
|---|---|---|
| Women | $149.36 | $1,581.80 |
| Men | $156.63 | $1,660.79 |
Source: www.canstar.com.au – 17/03/2026. Based on comprehensive cover for NSW based, 34-year old men and women with the same quoting assumptions (e.g., annual kilometres driven, full licence, day and night garage parking etc.).
These figures aren’t necessarily representative of the whole market. Other factors can play a significant part in how insurers price their premiums for both men and women.
What else affects the cost of car insurance?
When applying for cover, your insurer will ask you questions to calculate the level of risk involved in insuring you and your vehicle. It will then tailor a quote specific to your situation.
Here are some of the factors it will typically take into account:
The level of cover you choose
A policy with a greater level of cover will generally cost more, as the insurer is covering you for a wider range of risks (like damage caused by an accident where you were at fault).
If you choose to add optional coverage to your policy, such as roadside assistance, windscreen replacement, or rental car use, this will usually add to the overall cost.
The vehicle being insured
The greater the risk that your vehicle will be involved in an accident or stolen and the more costly it may be to repair or replace, the higher your premium will be. Insurers factor in your vehicle’s age, make and model, security features, and whether it has any modifications.
That’s right–your fancy rims and custom mods might cost you more than the sticker price in the long run.
Where you live
Insurers may charge higher premiums to drivers who live in areas with high crime rates or a greater risk of extreme weather events. If your car is parked securely at night, perhaps in a locked garage, your insurer may reduce your premiums to reflect this.
Your driving habits
When taking out car insurance, you may be asked to estimate how many kilometres you drive per year. Typically, the more you drive, the higher the risk that you’ll be involved in an accident–this can affect your premium.
And if you use your vehicle for commercial purposes as well as personal use, your insurer may charge you more or apply extra terms and conditions to your cover.
If you don’t drive very often or very far, you could consider a low kilometre or pay as you drive car insurance policy.
Your excess
A car insurance excess is the amount that you’ll need to contribute when making a claim. Some providers allow policyholders to choose their excess amount and, generally, the higher the excess, the cheaper your premiums. A word of warning–a higher excess may lower your premium, but it can bite you in the pocket if you need to make a claim.
Your driving record
Insurers may charge lower premiums to experienced drivers who haven’t made claims or committed traffic violations in the past. This is sometimes called a ‘no-claim bonus’ or ‘good driver discount’.
The car insurance provider you choose
It can pay to shop around and compare policies from a variety of different providers, as the premiums you’re quoted can vary significantly. For example, taking out a Canstar 5-Star Rated policy could save you up to $692 compared to a market-average policy.
5-Star Rated products vs market average
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| Consumer profile | Market Average | 5-Star Rated Products | Difference in price |
|---|---|---|---|
| Under 25 Female | $2,706 | $1,895 | $811 |
| Under 25 Male | $3,020 | $2,020 | $1,000 |
| 25 to 29 | $2,176 | $1,553 | $623 |
| 30 to 49 | $1,607 | $1,211 | $396 |
| Over 50 | $1,260 | $957 | $303 |
| Family with Young Driver | $2,747 | $1,731 | $1,016 |
| Overall | $2,226 | $1,534 | $692 |
Source: www.canstar.com.au – 27/05/2025. 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.
If you’re weighing up policies from a range of providers, make sure they’re offering an equivalent level of cover–you don’t want to end up paying for less protection than you need. You might also consider sign-up deals for car insurance, as long as you make sure you’ll still get good coverage and value for money.
Is the cost of car insurance going up?
Average car insurance costs rose by $122 (6%) in 2025. This is a smaller increase to that we saw in 2024, when prices ballooned 30.5% on average.
Why is car insurance so expensive in Australia?
Car insurance costs continue to rise in Australia as inflation and the impacts of global warming and increasing extreme weather take their toll. Extreme weather events accounted for $1.8 billion in insured costs in the first half of last year, according to the Insurance Council of Australia (ICA), with a large portion attributed to Ex-Tropical Cyclone Alfred.
How can you save on the cost of car insurance?
- Shop around: Avoid the temptation to auto renew your car insurance without checking for a better deal elsewhere. You can compare comprehensive car insurance policies using Canstar’s comparison tables.
- Look online: Some providers offer a discount if you take out your car insurance policy online instead of over the phone.
- Choose a higher excess: But remember to budget for the higher cost if you need to make a claim.
- Pay premiums annually: You may get a discount if you pay a full year’s premium upfront, rather than in monthly instalments, but check with your provider first.
- Insure your car for its market value: Insuring your vehicle for the amount it would cost to purchase a similar vehicle on the open market is often cheaper than insuring it for an agreed value.
- Choose the right car insurance for you: A comprehensive policy will cover accidental damage to your vehicle, even if you were at fault. This can be useful if you have a new car or would struggle to pay to repair or replace your current one. However, if you have an older vehicle that’s not worth very much, you may be better off with a third party policy.
- Restrict who can drive your vehicle: Some providers offer lower premiums if you restrict drivers below a certain age (e.g., 25 or 30 years) or nominate select people who can drive your car on your insurance certificate.
- Prioritise safety and security: You may be able to keep premiums low by taking steps to better secure your car (like installing a car immobiliser and parking in a lockable garage overnight). Keep in mind though that some costly car modifications can have the opposite effect, as they can increase repair costs for the insurer if you have an accident. Driving safely may also help you maintain a no claims bonus or discount.
- If you need it, ask for support from your car insurance provider: If you’re experiencing financial hardship, it could be worth checking whether your provider can offer any temporary relief. It might be able to freeze or reduce your premiums while you get back on your feet.
Why do I need car insurance?
All Australian road users are required to have Compulsory Third Party (CTP) insurance as part of their vehicle registration, but you may be questioning whether you need optional car insurance. Here are a few things to consider:
- If you were to damage someone’s vehicle or property in an accident, you may be liable for associated repair or replacement costs (or even legal fees if they sue you). The lowest level of optional car insurance could help cover such costs.
- If you have a new vehicle or one that’s worth a lot of money, it could be a substantial financial impact if it were to be written-off in an accident or stolen. Comprehensive car insurance could cover you for a variety of insured events, including accidental damage, damage from fire, storms or flooding, and theft and vandalism.
- If you’ve taken out a car loan to buy a vehicle, your lender may require you to take out a comprehensive insurance policy.
- If you’d find it difficult to cover the costs of buying a new vehicle or repairing your current one if it were to be damaged, comprehensive car insurance is worth considering.
- Comprehensive car insurance can also offer you peace of mind in knowing that your vehicle is covered in a wide range of situations.
