Car Insurance: Who pays the most and how can you save?

CANSTAR has obtained more than 24,000 car insurance quotes and assessed 63 products to determine average costs and outstanding value.
  • Average comprehensive car insurance premiums state by state
  • Average comprehensive car insurance premiums by demographic
  • Tips on how to save

Car insurance is a cost that we have to pay, but analysis of more than 24,000 premium quotes by canstar.com.au shows that some of us are paying significantly more than others.

“It’s not surprising that younger drivers pay more than their older siblings or than their parents, but it’s probably surprising for them, first time they apply for insurance, to realise just how much that difference is,” said CANSTAR Editor in Chief, Justine Davies.

“The average premium for a male driver under age 25, for example, is around twice as expensive as the average premium for a 26 year-old male driver. The difference for females is not quite but almost as great. And parents that let their young kids drive the family car can look at premiums more than two and a half times as great as they would otherwise be. That’s a good reason, if you needed one, to ban your kids from the driver’s seat.”

Across the states and demographics, the average comprehensive car insurance premiums are as follows:

New Car premiums

 NSWQLDSATASVICWA
25 – 29 female $1,202 $784 $832 $777 $1,059 $824
25 – 29 male $1,298 $839 $886 $830 $1,152 $884
30 – 44 year old $1,007 $648 $688 $634 $846 $677
Family $2,344 $1,548 $1,732 $1,625 $2,175 $1,647
Over 45 $868 $579 $609 $568 $759 $606
Under 25 female $2,310 $1,469 $1,670 $1,511 $2,082 $1,555
Under 25 male $2,607 $1,646 $1,876 $1,705 $2,305 $1,741
Source: Canstar. Premiums based on average of more than 24,000 quotes from 63 comprehensive car insurance products across Australia. Rounded to nearest dollar

Used Car premiums

NSW QLD SA TAS VIC WA
25 – 29 female $848 $534 $604 $538 $723 $585
25 – 29 male $909 $567 $642 $570 $779 $628
30 – 44 year old $904 $590 $631 $563 $797 $626
Family $2,292 $1,442 $1,622 $1,546 $2,108 $1,538
Over 45 $780 $526 $555 $511 $670 $541
Under 25 female $2,069 $1,303 $1,483 $1,333 $1,813 $1,365
Under 25 male $2,353 $1,474 $1,675 $1,513 $2,029 $1,539
Source: Canstar. Premiums based on average of more than 24,000 quotes from 63 comprehensive car insurance products across Australia. Rounded to nearest dollar

It’s about value, not cost

Insurance costs are most certainly a cost of living pressure for many Australian households but Ms Davies warns that choosing an insurance policy is not a race to the bottom.

“There’s nothing wrong with a cheap policy provided it’s not cheap and nasty,” said Ms Davies.

“That’s true of any insurance of course; you need a policy that has a sharp price but that also has great features. It’s the combination of price and features that makes something outstanding value. You absolutely do not want to find, when you go to make a claim, that you’re not covered properly. So be conscious of price, but don’t skimp on quality.”

Outstanding value for customers

When it comes to car insurance savvy drivers can find great value by shopping around, with CANSTAR announcing two winners of CANSTAR’s national Outstanding Value – Car Insurance Award: Budget Direct and QBE.

“Both insurers rank highly across pricing and features, providing that ideal combination of the two that we look for,” said CANSTAR’s Head of Research, Mitchell Watson.

“Additional recognition is also due to Budget Direct who has won our National Award for a phenomenal ten years in a row. Over that time we have obtained around 295,000 insurance quotes for 165 car models across six states and every demographic. We have also seen major industry changes over that time. Car insurance is a highly competitive industry  – we assess more than 165 policy features for every products assessed – so Budget Direct’s decade of outstanding value is no small feat.”

CANSTAR congratulates Budget Direct and QBE on providing outstanding value for money, Australia-wide.

State-based winners

In addition to the National Award, CANSTAR also provide a state-based award and the state-based winners are as follows:

STATE WINNING INSURER
NSW Budget Direct
QLD NRMA Insurance
VIC Budget Direct
WA QBE
SA SGIC
TAS Budget Direct
Source: Canstar

To make a shopping list of outstanding value car insurance deals worth following up consumers can go straight to their driver profile and state of residence on CANSTAR’s car insurance comparison tables.

 

For further information:

Justine Davies
Finance Editor & Commentator
Ph. (07) 3837 4151
justine.davies@canstar.com.au

 

About CANSTAR

CANSTAR provides Australia’s interactive online research service in consumer and business finance. Founded in 1992, CANSTAR Pty Limited is Australia’s researcher of retail finance information for over 250 institutions such as Banks, Building Societies, Credit Unions, Finance Companies, Brokers, Mortgage Originators, Life Companies and finance related Internet Portals. CANSTAR customers use the extensive database for competitor analysis as well as a means of disseminating their product range. CANSTAR also distributes this information to print and electronic media for publication and to Agents, Accountants, Brokers and Internet Portals for use in advising their clients.

What are the CANSTAR star ratings?

CANSTAR researches, compares and rates the suite of banking and insurance products listed below. Results are freely available to consumers who use the star ratings as a guide to product excellence. The use of similar star ratings logos also builds consumer recognition of quality products across all categories. Please access the CANSTAR website at www.canstar.com.au if you would like to view the latest star ratings reports of interest.

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Health insurance Travel insurance
Home & Contents Travel money card
Home loans Youth banking
Life insurance

 

COMPLIANCE DISCLOSURE and LIABILITY DISCLAIMER

To the extent that the information in this report constitutes general advice, this advice has been prepared by CANSTAR Research Pty Ltd A.C.N. 114 422 909 AFSL and ACL 437917 (“CANSTAR”).  The information has been prepared without taking into account your individual investment objectives, financial circumstances or needs.   Before you decide whether or not to acquire a particular financial product you should assess whether it is appropriate for you in the light of your own personal circumstances, having regard to your own objectives, financial situation and needs.  You may wish to obtain financial advice from a suitably qualified adviser before making any decision to acquire a financial product.  CANSTAR provides information about credit products. It is not a credit provider and in giving you information it is not making any suggestion or recommendation to you about a particular credit product.  Please refer to Canstar’s FSG for more information.
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