Are you paying above average for car insurance?

CANSTAR reveals the average annual premium for comprehensive car insurance in states and territories across Australia. Are you paying too much?

We all want to know how much we can save when paying for the insurance we need. It’s undeniable that having insurance is a huge saving in and of itself if you do happen to have a crash or another traffic incident. When it comes to the cost of that insurance, knowledge is power – so we’ve done some research into the average premiums you can expect to see across the country.

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What does car insurance cost for new cars?

Here are the average annual premiums we have found in calculating this year’s car insurance star ratings. As you can see, your best bet for getting cheap car insurance is to simply keep growing older, as mature-aged drivers receive lower prices to recognise their experience and safe driving.

Our first set of data summarises the average premium price per year for drivers who have a new car registered in 2014 or more recently.

Average premium per year
for drivers (categorised by age) with a new car
  NSW QLD VIC SA TAS WA
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. Premiums rounded down to nearest dollar

What does car insurance cost for older cars?

What if you’re driving an older car? Well, on average your car insurance could get $100 cheaper. The gap is more noticeable for Under 25s, where your annual premium could be nearly $300 cheaper if you were driving an older car.

This second set of data below summarises the average premium price per year for drivers who own an older car that was pre -2008.

Average premium per year
for drivers (categorised by age) with an older car
  NSW QLD VIC SA TAS WA
Family $2,292 $1,442 $2,108 $1,622 $1,545 $1,538
45+ years old $780 $525 $669 $554 $511 $541
30-44 years old $903 $589 $796 $630 $563 $625
25-29 Female $847 $534 $723 $603 $538 $585
25-29 Male $909 $567 $779 $642 $570 $628
Under 25 Female $2,069 $1,302 $1,812 $1,483 $1,333 $1,365
Under 25 Male $2,353 $1,473 $2,029 $1,675 $1,512 $1,538
Source: CANSTAR, May 2016. Premiums rounded down to nearest dollar

The right features at the right price

There’s more to car insurance than just finding the cheapest annual premium and driving off into the sunset. You should always read the product disclosure statement (PDS) for any insurance product you are considering. In particular, look out for the excess that a policy charges if you make a claim, since a large excess can cancel out the savings you made in the cost of the premium.

CANSTAR also researches and rates many other features of car insurance policies. In 2016, we have researched 63 car insurance policies from 53 insurers around Australia and given them star ratings according to how much value they provide for drivers of different ages. Take a look at our comparison tables to see which policies would provide 5-star rated outstanding value for your vehicle.

 

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