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
|NSW||Under 25 Female||$2,204|
|Under 25 Male||$2,471|
|QLD||Under 25 Female||$1,464|
|Under 25 Male||$1,661|
|VIC||Under 25 Female||$2,227|
|Under 25 Male||$2,503|
|SA||Under 25 Female||$1,592|
|Under 25 Male||$1,820|
|WA||Under 25 Female||$1,413|
|Under 25 Male||$1,611|
|TAS||Under 25 Female||$1,421|
|Under 25 Male||$1,622|
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.
Cover image source: lev.studio (Shutterstock)
Co-author: James Hurwood