The competitive world of car insurance

Canstar has obtained more than 24,000 car insurance quotes and assessed 63 products to determine which insurers are providing outstanding value to drivers across Australia.

The Australian car insurance industry is highly competitive, with more than 50 insurers competing for the drivers’ dollars. In a competitive environment, cutting through the noise to find an outstanding value insurance policy can be complex, so each year Canstar obtains more than 24,000 insurance quotes to research and rate the comprehensive car insurance policies available state by state and across different age groups.

Average cost of car insurance state by state and average cost of car insurance by sex and age group are contained on page 3.

Drivers need price and features

In assessing Outstanding Value, Canstar looks for an ideal combination of competitive price and comprehensive features.

“We use the annual insurance premium is used as our point of cost comparison and compare equivalent products,” said Canstar Head of Research, Mitchell Watson.

“The policy features that are important will differ depending on the age of the driver, but we look for things such as after-accident care, windscreen cover, guarantee of repairs, the ability to include a rental car in the policy, what types of exclusions are quoted  and the claims processes on offer. There are whole range of other features we look at; all up we look for more than 165 policy features for every product assessed.”

National Winners of Outstanding Value – Car InsuranceCANSTAR-Outstanding-Value-Car-Insurance 2016

Canstar is pleased to announce two winners of Canstar’s 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.

budget-direct-logo“For the tenth year in a row Budget Direct has achieved our overall outstanding value car insurance award. This is an incredible achievement and demonstrates the consistency of Budget Direct’s offering to Australian motorists,” said Mr Watson.

“Over the years our methodology has adjusted to market changes and they have been able to maintain their high standards if not push the industry benchmarks. What drives their performance is that they are truly an insurer for all Australian motorists, which is shown through their competitive pricing across young to old drivers and families.

“In some categories we saw prices difference of over $700 in comparison to the national market average. Being affordable is one thing but Budget Direct are also offering outstanding value through competitive premiums coupled with strong policy cover. Included as standard in their policy they provide a lifetime guarantee on repairs, up to 14 days of rental car cover if your car is stolen and up to $850 in cab fares following an accident. In addition innovations like Hail Hero demonstrate a company that is looking out for their customers.”

“Winning the national Canstar award for outstanding value 10 years’ running is a huge honour for Budget Direct, and one which we don’t take lightly,” said Ram Kangatharan, Managing Director & CEO Budget Direct.

“Budget Direct promises Simply Smarter Insurance and the award highlights this is not just an advertising line. We have an ongoing commitment to deliver great products, great value and features to our customers, providing a valuable alternative in the market.”

Also winning the national Outstanding Value Award is QBE, who has also been a consistent winner.

qbe logo“QBE has once again proven itself as one of Australia’s top car insurers. For the second year in a row QBE has achieved our Outstanding Value Car Insurance award for Australia,” said Canstar’s Mr Watson.

“This is recognition of the strength of their offering across Australia based on their competitive premiums and strong policy inclusions. They were particularly strong in price in the middle or older age profiles and for the younger profiles the use of QBE’s innovative Insurance Box may assist in reducing premiums by demonstrating their safe driving skills.

On the policy cover side, taking out insurance with QBE will see additional items like the ability to claim up to $500 in cab fares following an accident or up to 14 days of rental car hire should a car be stolen. QBE have also been a previous winner of our Outstanding Claims Service award and they have continued to perform very strongly on their after accident care.”

“We’re incredibly proud to be recognised for offering Australian motorists top value car insurance, for the second year running.

“There’s no doubt providing consumers with affordable cover that meets their needs is one of the most important features of insurance, and we’re always focused on how we can deliver both a great price and comprehensive product features to ensure our customers are protected.

“We’re so pleased to receive this award as recognition we’re continuing to create value for our customers.”

State-based winners

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

NSW Budget Direct
QLD NRMA Insurance
VIC Budget Direct
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.

What does car insurance cost?

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

New Car premiums

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

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


For further information:

Justine Davies
Finance Editor & Commentator
Ph. (07) 3837 4151


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.

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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 if you would like to view the latest star ratings reports of interest.

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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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