How much does car insurance cost?

Canstar reveals the average annual premiums for comprehensive car insurance in states and territories across Australia. Are you paying more than the next driver?

Whenever we evaluate our insurance premiums, we often wonder whether we could find a better deal elsewhere, and we all want to know how much we could potentially save on our car insurance premiums. Car insurance provides a level of financial protection in the event of a crash or other incident, but that doesn’t mean you need to settle for the first policy you find, or even the one you have had for years. With this in mind, we’ve calculated the average comprehensive car insurance premiums you can expect to see across the country, based on statistics from our database.

Average car insurance costs by age and state

The car insurance premiums you pay can depend on a range of factors, such as your age, location and even gender. For example, the average annual cost of comprehensive car insurance premiums in NSW for a male driver under the age of 25 was $2,471 according to Canstar’s 2020 car insurance Star Ratings data.

In comparison to a female under 25 from NSW, there was a difference of well over $200, with premiums being $267 higher on average for male drivers. This is a much larger gap than in 2019, which saw a difference of less than $200 between males and females under 25 in NSW.

The table below shows a complete overview of average car insurance premiums on our database, broken down by age and state:

Car Insurance Average Annual Premiums – By State/Territory & Age
State Age Average Premium ($/year)
NSW Under 25 Female $2,204
Under 25 Male $2,471
25-29 $1,798
30-49 $1,258
50+ $998
Family $2,224
QLD Under 25 Female $1,464
Under 25 Male $1,661
25-29 $1,213
30-49 $870
50+ $699
Family $1,484
VIC Under 25 Female $2,227
Under 25 Male $2,503
25-29 $1,721
30-49 $1,225
50+ $958
Family $2,062
SA Under 25 Female $1,592
Under 25 Male $1,820
25-29 $1,272
30-49 $896
50+ $708
Family $1,605
WA Under 25 Female $1,413
Under 25 Male $1,611
25-29 $1,153
30-49 $816
50+ $645
Family $1,437
TAS Under 25 Female $1,421
Under 25 Male $1,622
25-29 $1,151
30-49 $808
50+ $646
Family $1,406
Source: www.canstar.com.au, 29/05/2020. Based on comprehensive car insurance policies rated in the Canstar 2020 Car Insurance Star Ratings (May 2020). Premiums include quotes for both new and used cars for a range of scenarios, with a state specific target excess ranging from $600 to $750.

Looking at the data above, you can see there is a correlation between age and premiums – that is, the older you get, the less you typically pay. For example, average premiums for an over 50-year-old in New South Wales came to only $998 per year. In comparison, a male under the age of 25 in NSW could be paying an average of $2,471 – more than double their older counterpart’s premium. 

Top car insurance policies by Star Rating

If you’re in the market for a car insurance policy, check out the table below which includes some of the car insurance policies on Canstar’s database for each of a 25-29, 30-39 and 40-49 year old male driver in NSW without an extra driver under 25 years old, with links to providers’ websites. The results are sorted by Star Rating, then by provider name (alphabetically). Check upfront with your provider and read the PDS to confirm whether a particular policy meets your needs before deciding to commit to it.

Car insurance premiums: new vs old cars

Insuring an older car can often be cheaper than insuring its newer counterpart, due to the fact that older cars generally have a lower market value and therefore cost less to repair or replace, according to Canstar Research. For example, a brand new Mazda 3 may cost about $24,000 to replace if it is written off, whereas a 5 year old Mazda 3 may cost around $12,000.

The right features at the right price

While price is an important factor in determining what makes for a good car insurance policy, it isn’t usually wise to choose a policy simply because it offers the cheapest annual premium. It can be a good idea to read the product disclosure statement (PDS) of any insurance product you are considering. In particular, consider out what your excess options will be under any given policy – if you need to make a claim, having to pay a large excess could go a long way towards erasing any savings you might make on your premiums. On the other hand, opting for a higher excess could make sense for some policyholders as it could mean reducing the premiums you pay. 

Canstar researches and rates car insurance policies based on a wide range of features and presents its findings with a Star Rating system, with products that receive a five-star rating demonstrating outstanding value for consumers. Check out the comparison tables when looking for a policy that suits your needs.

This article was reviewed by our Sub-editor Tom Letts before it was published as part of our fact-checking process.

Cover image source: lev.studio (Shutterstock)

Co-author: James Hurwood


Ellie McLachlanEllie is a Senior Finance Journalist within the Editorial team at Canstar, responsible for leading the news function for the business. She specialises in covering all things home loans and housing, breaking finance industry news and monitoring financial product movements. Ellie has a keen interest in analysing data and research, and is passionate about sharing people’s personal experiences with managing money. Ellie studied a Bachelor of Journalism and Arts (Peace and Conflict Studies) at UQ and has dipped her toe in digital, broadcast and print media, including at organisations such as The Urban List, The Courier Mail, 4ZZZ and APN News & Media. Follow her on Twitter and LinkedIn.

 

About James Hurwood

James HurwoodJames is a Finance Journalist at Canstar and has a wealth of experience when it comes to unpacking and explaining the minutiae of personal finance. He started at Canstar in 2013 as a student while completing a Bachelor of Journalism majoring in Media & Communications at QUT and has since transitioned into a full-time writer. He has a particular passion for the subject of superannuation and is ‘invested’ in making it as engaging and accessible a topic as possible for Australians of all ages, but particularly other young people. James is currently saving for his first home, and spends much of his spare time hitting either drums or boxing bags.

Share this article