Co-author: TJ Ryan
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.
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 except Western Australia, there is at least a $50 difference between new cars and old cars, with a new car being one that is less than five years old. So if you’re after cheaper car insurance premiums, getting an older car might be a good place to start.
New Cars Vs Old Cars – Annual Premiums ($/year) for a 30 to 49 year old driver
|State||Car Type||Average Premiums ($/year)||Difference|
|Source: www.canstar.com.au. Premiums are based on all products rated in Canstar’s 2018 Car Insurance Star Ratings (May 2018) for the 30 to 49 year old Driver profile. Premiums for old car type based on five-year old vehicles.|
If you’re in the market for a new Car Insurance policy, see our comparison table below which features some of the best products on our database sorted by star rating and with links to lenders’ websites.
Compare car insurance policies with Canstar
Source: Canstar. Based on Star Rating (highest to lowest) and was formulated based on a male aged 25-29 in NSW without an extra driver under 25 years old.
Source: Canstar. Based on 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.
Source: Canstar. Based on Star Rating (highest to lowest) and was formulated based on a male aged 40-49 in NSW without an extra driver under 25 years old.
Source: Canstar. Based on Star Rating (highest to lowest) and was formulated based on a male aged 50-59 in NSW without an extra driver under 25 years old.
Average car insurance cost by age and state
The average cost of car insurance in NSW for an male under the age of 25 is $1,641 according to Canstar’s 2018 Car Insurance Research – a decrease of nearly $600 from 2017’s average of $2,217 in the same category.
In comparison to a female under 25 from NSW, there’s a difference of more $100. This is much closer gap than in 2017, which saw a difference of nearly $300 between males and females under 25 in NSW.
The table below shows a complete overview of car insurance premiums by age and state:
Car Insurance Premiums – By State/Territory & Age
|State||Age||Average Premiums ($/year)|
|NSW||Under 25 Female||$1,524|
|Under 25 Male||$1,641|
|25 – 29 Male||$1,246|
|30 – 49||$965|
|Family with Young Driver||$827|
|QLD||Under 25 Female||$1,093|
|Under 25 Male||$1,201|
|25 – 29 Male||$920|
|30 – 49||$721|
|Family with Young Driver||$1,922|
|VIC||Under 25 Female||$1,515|
|Under 25 Male||$1,629|
|25 – 29 Male||$1,184|
|30 – 49||$923|
|Family with Young Driver||$2,626|
|SA||Under 25 Female||$1,071|
|Under 25 Male||$1,161|
|25 – 29 Male||$884|
|30 – 49||$692|
|Family with Young Driver||$1,986|
|WA||Under 25 Female||$1,042|
|Under 25 Male||$1,149|
|25 – 29 Male||$867|
|30 – 49||$668|
|Family with Young Driver||$1,792|
|TAS||Under 25 Female||$1,018|
|Under 25 Male||$1,122|
|25 – 29 Male||$845|
|30 – 49||$658|
|Family with Young Driver||$1,767|
|Source: www.canstar.com.au. Premiums are based on all products rated in Canstar’s 2018 Car Insurance Star Ratings (May 2018). Premiums include quotes for both new and old cars (5 years old) across profiles.|
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. For a over 50 year old in New South Wales, this comes to only $68.92 per month. In comparison, a male under the age of 25 in NSW could be paying up to $136.75 per month – a difference of just under $68!
How much is car insurance per month?
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 2018 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 a 5-Star rating for Outstanding Value for your vehicle.