How Much Does Car Insurance Cost in 2018?

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 could save when paying for the insurance we need. It’s undeniable that having insurance can provide a huge saving if you happen to have a crash or another 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 on average 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 an old car being defined as one that is 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
NSW New $1,001 $71
Old $930
QLD New $748 $56
Old $693
VIC New $950 $53
Old $897
SA New $725 $67
Old $659
WA New $692 $49
Old $643
TAS New $692 $69
Old $623
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 5-year old vehicles.

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 a snapshot of 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.

 

Average car insurance cost by age and state

The average annual cost of car insurance premiums in NSW for a 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 just over $100, with premiums being slightly higher on average for male drivers. This is a 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 average car insurance premiums by age and state:

Car Insurance Premiums – By State/Territory & Age

State Age Average Premiums ($/year)
NSW Under 25 Female Driver $1,524
Under 25 Male Driver $1,641
25 – 29 Driver $1,246
30 – 49 Driver $965
Over 50 Driver $827
Family with Young Driver $2,609
QLD Under 25 Female Driver $1,093
Under 25 Male Driver $1,201
25 – 29 Driver $920
30 – 49 Driver $721
Over 50 Driver $619
Family with Young Driver $1,922
VIC Under 25 Female Driver $1,515
Under 25 Male Driver $1,629
25 – 29 Driver $1,184
30 – 49 Driver $923
Over 50 Driver $790
Family with Young Driver $2,626
SA Under 25 Female Driver $1,071
Under 25 Male Driver $1,161
25 – 29 Driver $884
30 – 49 Driver $692
Over 50 Driver $588
Family with Young Driver $1,986
WA Under 25 Female Driver $1,042
Under 25 Male Driver $1,149
25 – 29 Driver $867
30 – 49 Driver $668
Over 50 Driver $576
Family with Young Driver $1,792
TAS Under 25 Female Driver $1,018
Under 25 Male Driver $1,122
25 – 29 Driver $845
30 – 49 Driver $658
Over 50 Driver $559
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 typically pay. For example, average premiums for an over 50-year-old in New South Wales come to only $68.92 per month. In comparison, a male under the age of 25 in NSW could be paying an average of $136.75 per month – a difference of just under $68.

 

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 gave them Star Ratings according to how much value they provide for drivers of different ages. Take a look at our comparison tables to see if any of the policies which received a 5-Star Rating for Outstanding Value suit your needs.

Compare Car Insurance with Canstar

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