Car insurance premiums by State and Territory: What a difference a state makes…

19 October 2016
Dude, where’s your car?

As we do every year, Canstar has crunched the numbers from literally thousands of car insurance quotes – and it’s interesting to note what a difference where you live can make to your premium.

The average cost of car insurance by state

Finding the average car insurance premium by state from the quotes obtained in the research for our 2016 star ratings report, we discovered that prices were highest on average in NSW.

An under-25 male driver in NSW could be paying an average $2,607/year premium for car insurance. Young drivers really do get the short end of the stick when it comes to car insurance premiums.

In the same demographic for Queensland, however, an under-25 male would only pay an average premium of $1,646/year – that’s a whopping $961 difference every year!

Average premium per year for drivers (categorised by age) with a new car
Family $2,345 $1,548 $2,174 $1,731 $1,624 $1,646
45+ years old $868 $579 $759 $608 $568 $606
30-44 years old $1,007 $648 $845 $687 $634 $677
25-29 Female $1,202 $784 $1,059 $831 $777 $823
25-29 Male $1,298 $839 $1,152 $885 $829 $883
Under 25 Female $2,310 $1,469 $2,082 $1,670 $1,511 $1,555
Under 25 Male $2,607 $1,646 $2,305 $1,876 $1,704 $1,741
Source: Canstar, May 2016 Star Ratings Report. Premiums rounded down to nearest dollar

It seems as though the older driver doesn’t fare too much better in NSW either, regardless of how confident they might be. Over-45s policies in that state cost $868/year on average in 2016, compared to just $568/year in Tasmania. Could be a sign that it’s worth retiring to the far south of the country

Across the country, average car insurance premiums by state for various demographics were found to be as follows:

What these findings mean

As mentioned, differences in the average cost of car insurance by state reflect the different level of risk to an insurer of a claim. It doesn’t mean that drivers are less skilled in one state versus another, but it does reflect state populations, number of cars, and the number of claims arising from each state. Premiums are relative to the proportion of claims statistics by age and location.

It’s also noting that your gender could make more of an impact on your premium than the state you live in!

With insurance costs representing a significant cost of living pressure for many Australian households, it’s worth shopping around for a policy that represents outstanding value for money. And if you’re thinking of moving, you could always make the cost of car insurance a factor and compare car insurance rates by state to figure out where it would be cheapest for you to be insured.

The important thing with car insurance is to find a policy that you can afford and that gives you a level of cover you’re happy with. There are different types of policies and not all policies of the same type will offer equal coverage.

For further details, check out our car insurance star ratings report, or compare your car insurance options here.

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