How Much Does Car Insurance Cost?

Co-author: TJ Ryan

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 if you 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.

Compare Car Insurance

Car insurance premiums: new vs old cars

Taking out car insurance for an older car model is significantly cheaper than car insurance for newer cars, due to the fact that older cars cost less for insurers to repair or replace. Here are the average annual premiums we have found in calculating this year’s car insurance star ratings.

In every state, there is at least a $100 difference between cars bought pre-2008 and after 2014. So if you’re after cheap car insurance premiums, getting an older car might be a good place to start.

New Cars Vs Old Cars – Annual Premiums ($/year)
State Car Type Average Premiums Difference
NSW New $1,297.22 $165.24
Old $1,131.97
QLD New $817.80 $117.29
Old $700.51
VIC New $1,156.71 $162.60
Old $994.11
SA New $905.32 $118.13
Old $787.20
WA New $902.40 $126.40
Old $776.00
TAS New $835.40 $117.43
Old $717.97
Source: www.canstar.com.au as at 4 May 2017. Premiums are based on Canstar’s 2017 Car Insurance Star Ratings.

Compare car insurance policies with Canstar

In the market for a car insurance policy? The table below displays a snapshot of car insurance policies on Canstar’s database with links direct to providers’ websites. Please note this table has been sorted by Star Rating (highest to lowest) and was formulated based on a male aged 30-39 in NSW without an extra driver under 25 years old.

Compare Car Insurance with Canstar

Car insurance cost by age and state

The table below shows a complete overview of car insurance premiums by age and state, according to Canstar’s 2017 Car Insurance Research.

Car Insurance Premiums 2017 – By State/Territory & Age
State Age Average Premiums 2017 ($/year)
NSW Under 25 Female $1,992.87
Under 25 Male $2,217.77
25-29 $1,018.67
30-49 $762.99
Family $2,277.19
Over 50 $653.09
QLD Under 25 Female $1,179.28
Under 25 Male $1,318.48
25-29 $627.66
30-49 $473.17
Family $1,376.60
Over 50 $419.07
VIC Under 25 Female $1,765.76
Under 25 Male $1,965.42
25-29 $900.19
30-49 $656.61
Family $2,113.28
Over 50 $568.89
SA Under 25 Female $1,340.86
Under 25 Male $1,497.39
25-29 $647.05
30-49 $483.35
Family $1,532.90
Over 50 $414.03
WA Under 25 Female $1,255.51
Under 25 Male $1,394.54
25-29 $660.16
30-49 $490.13
Family $1,435.08
Over 50 $423.56
TAS Under 25 Female $1,174.02
Under 25 Male $1,303.36
25-29 $600.89
30-49 $448.50
Family $1,381.43
Over 50 $392.24
Source: www.canstar.com.au as at 4 May 2017.Premiums are based on Canstar’s 2017 Car Insurance Star Ratings.

Looking at the data above, you can see there is a direct correlation between age and premiums – that is, the older you get the less you pay. This stops once you go past your 50s, but until then, becoming silver-haired can have a positive impact on what you pay for car insurance premiums.

For maximum impact, try getting an older model of car as you age. We know it can be tempting to splash on a sports car once the kids move out of home, but you could see a massive difference in your yearly premiums.

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 2017 we researched 61 car insurance policies from 51 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.

Compare Car Insurance with Canstar

Share this article

Enjoyed reading this article?

Sign up to receive more news like this straight to your inbox

By subscribing you agree to the Canstar Privacy Policy.

Thanks for signing up!

Good things are coming your way.