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How Much is Car Insurance in Australia? We Answer


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How much is car insurance in Australia? With more than 20 million registered cars in our great southern land, this is a five-star question. If you’re searching up the cost of vehicle insurance, know that protecting your car shouldn’t be difficult and may not be as costly as you think.

There are a few basic figures to help guide you. However, it’s worth noting there isn’t one (or even 100) fixed car insurance prices. Rather, the price you pay is customised around your circumstances.

Some of the factors that affect your premium include what you drive, how often you drive it, who else drives your car, where you park, and what claims you’ve had in the past and when.

Let’s crunch some data to unpack how much you’re likely to pay for vehicle cover.

A vehicle is garaged in a safe neighbourhood and therefore policy cost calculations include this in the overall level of risk the insurer must bear

How much does vehicle insurance in Australia cost?

When calculating the cost of your car insurance premium, you’ll need to start by selecting a level of cover.

In Australia, there are three different types of car insurance to choose from (aside from mandatory compulsory third party insurance). Each one offers a different tier of cover, meaning you can choose to pay less for basic cover or more for a wider safety net.

When it comes to car insurance, the widest safety net is comprehensive car insurance.

How much is comprehensive car insurance in Australia?

Time to bust those numbers. As mentioned, there are three main levels of cover in Australia – comprehensive does cost the most. Let’s explore…

The most basic, third party property damage, is to protect your pocket for costs incurred when you accidentally damage someone else’s car or other property.

Next on the list is third party fire and theft, which ups the protection a notch with perks for your car too. These only involve costs incurred for fire damage and theft, unsurprisingly.

The broadest range of cover is comprehensive car insurance, as its name suggests. In other words, while you pay more for this, you benefit from the widest range of cover, including accident, theft, damage and third-party liability. It’s the only insurance that covers you for damage you accidentally do to your own car.

In Australia, the cost of comprehensive car insurance can range from a few hundred to a few thousand dollars (see Canstar’s comparison here that says the average is $800 to more than $3,000). As you can see from these figures there’s a wide range of difference from one dollar figure to the other and it doesn’t stop there.

How to find out how much your car insurance will be

Having some numbers to go by gives you a good comparative starting point. Next, to find out what you’ll pay for your car insurance policy, you’ll need to do some deeper digging. By this we mean, it’s a good idea to get some quotes based on the kind of safety net you could need.

Here’s an outline of what these steps might look like:

  • Quote comparison. Firstly, it’s a good idea to select a handful of insurance providers you prefer so you can get quotes from each. This way you can compare car insurance based on your profile, exploring features and benefits plus the cost of each.
  • Level of cover. To get to the answer for how much car insurance will cost you, decide on the level of cover you want then start the quote process with each insurer.
  • Personal premium. Modern insurance providers offer an online quoting process. You’ll be asked to input a bunch of your personal details to arrive at the cost of your personal premium. These include car type and age, garaging details, listed drivers, contact details, etc.

Each insurer will then look at your unique profile and work out your premium from there. You might find your insurance cover will cost anywhere from less than $200 to well over $2,000 for one year.

Importantly, make 100% sure you’re honest and accurate about what details you input. If, for example, you give inaccurate dates or aren’t completely transparent about previous claims, you could end being denied car insurance cover when you claim.

Insurance is a relationship where you gain the financial protection you need and like any healthy relationship both parties must be transparent from the outset.

Couple go on a driving holiday in the Blue Mountains

What factors affect car insurance costs in Australia?

As you’ve seen, the cost of car insurance can vary significantly, with several personal factors affecting your vehicle insurance costs. Let’s delve into the aspects that influence car insurance costs in Australia. There are plenty more, but these are some of the key ones.

Choosing your cover

As we’ve mentioned, the first factor that impacts car insurance costs is the type of cover you choose. Here’s the link to each of the PD Insurance cover options:

Remember that although the latter options are more budget-friendly, they won’t provide cover for as many of the situations you’ll potentially face out on the road. It’s important to choose cover that protects your finances and gets your car back in action ASAP.

Model and age of your car

The make, model and age of your car significantly influence the cost of vehicle insurance. Naturally, a luxury sports car will have a higher premium than a mainstream model. So too will a newer car versus an older car, usually.

Older cars can sometimes be more expensive to insure because they can breakdown more often than newer ones and parts can be scarce (read: costly) as a result. And then there’s those drool-worthy vintage cars you often see out for a Sunday drive… They can cost a pretty penny to insure.

Drivers enjoy the scenic view on a roadtip feeling secure thanks to well priced vehicle insurance from PD Insurance

Driver age, experience and number

If you’re a new driver, don’t sweat it, that doesn’t automatically mean car insurance providers think you’re not slick behind the wheel. However, there’s much to be said for the ten thousand hour rule in that no matter how good of a driver one is, experience is a bonus.

Inexperienced drivers typically pay more for car insurance due to their statistically higher risk of being involved in accidents. This applies to younger drivers too, under 25 years of age usually and especially males (read about whether women get cheaper car insurance).

Happily, as drivers become more experienced behind the wheel and maintain a clean driving record, they can benefit from lowered premiums. Not to mention no-claims bonuses.

The more drivers of your car, the more risk for the insurer. If you’re listing one or more additional drivers on your policy your premium may very well rise along with that.

Where you live, drive and park – location, location, location!

Naturally if you live in a low crime zone this positively affects the cost of your car insurance premium. Conversely, high crime zone and urban areas with higher population densities – meaning more accidents and thefts – increase vehicle insurance costs.

Always update your insurance provider if your garaging, living or driving details change as these changes could affect your cover. Read how these updates, known as car insurance endorsements, could save you money.

Your (claim) history

How much you’ve needed to claim in the past and when also sets a standard for how much car insurance will cost you. If you’ve been driving for decades with no claims then you’ll be rewarded with lower costs.

Drivers with a history of making frequent claims are considered higher risk. This is risk that insurance providers must take to give you the soft landing of car insurance. As a result, a busy claims history can result in a higher car insurance premium.

Read about how to make a comprehensive car insurance claim in six steps with PD Insurance.

Australian driver looks up 'How much is car insurance?' on their phone.

Policy excess and more

Part of any vehicle insurance policy is the excess, an amount that you as the insured contribute towards repairs/replacement when you make a claim. It’s up to you to decide whether you’d like to pay a higher or lower excess when you need to claim. Doing so will adjust your premium down or up accordingly.

Read more about understanding your car insurance excess payment and high excess vs low excess.

Then of course there’s the difference choosing to insure your car for its market or agreed value can make. Read about that in our article: Market Value vs. Agreed Value: Which is Best?

How much will car insurance cost me, today?

Still wondering how much is car insurance in Australia? Hopefully you now have a clearer idea of the factors affecting it and want to take your research to the next step by getting a quote.

Choose award winning vehicle insurance with PD Insurance. Our insurance plans give you the soft landing of financial protection and peace of mind, covering you against potential accidents, theft and damage. (If you’ve got pets, we cover them too!)

Get a quote today – just click below…

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