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How much is car insurance?

The average comprehensive car insurance premium cost is $134 a month – but we’ve got third party policies starting from $18 a month.

Car Insurance

We researched over 30 comprehensive car insurance providers and 19 third party car insurance brands. We found the average annual car insurance premium costs:

Third party car insurance

$522 for Third Party Property Damage insurance

Comprehensive car insurance

$1,362 for Comprehensive insurance

Note: For information on how we got these quotes, see our car insurance methodology.

Comparison of the annual car insurance costs in Australia

BrandComprehensiveApply
Bingle$862Get quote

Rollin' car insurance

$886Get quote
Hume Bank Logo$959More info
Budget Direct$992Get quote
St. George$1,036More info
Westpac insurance$1,036More info
NRMA Logo$1,043More info
Virgin money$1,057More info
PD Car Insurance$1,060More info
NAB car insurance$1,074More info
BrandThird party onlyApply
Virgin money$378.90More info
Budget Direct$379.57Get quote
Bingle$425.84Get quote
Qantas$434.42Get quote
Australia Post$449.69Get quote
Picture not described$481.65More info
Kogan insurance$515.04More info
AAMI Logo$516.02More info
NRMA Logo$524.56More info
GIO Logo$526.89More info

How much does car insurance cost?

Average cost in AustraliaNew South WalesQueenslandSouth AustraliaTasmaniaVictoriaWestern Australia
Budget Direct$992$1,148$941$978$829$1,180$880
Virgin$1,057$1,214$1,013$1,046$880$1,254$934
Suncorp$1,559$2,003$2,107$1,240$1,100$1,588$1,317
Everday$1,552$1,861$1,356$1,402$1,218$2,070$1,403
Hume Bank$959$900$1,036$922$783$1,280$831
ROLLiN'$886$1,151$843$690$709$1,248$674
Bingle$862$935$872$724$726$1,156$761
Huddle$1,407$1,702$1,261$1,286$1,112$1,848$1,233
Real Insurance$1,464$1,752$1,277$1,326$1,147$1,959$1,321
AAMI$1,218$1,884$1,106$1,015$985$1,318$1,002

Average cost of car insurance by state

StateCost
New south wales$1,698
Victoria$1,721
Queensland$1,274
South australia$1,233
Western australia$1,242
Tasmania$1,128

How much does it cost on average for your age?

AgeAverage cost
20$2,387
30$1,293
40$1,116
50$1,010
60$899

How much does a third party property damage policy cost?

BrandCost
Virgin$378.90
Budget Direct$379.57
Bingle$425.84
Qantas$434.42
Australia Post$449.69
Allianz$481.65
Kogan$515.04
AAMI$516.02
NRMA$524.56
GIO$526.89

Ready to compare car insurance policies?

1 - 7 of 24
Name Product Roadside assistance Accidental damage Storm Choice of repairer Agreed or Market Value
Youi Comprehensive
Optional
Agreed or Market
Finder's summary: The 2023 winner of our Best Features Car Insurance award. Plus, it's one of the only insurers to automatically include roadside assistance.

Who it might be good for: Those who want good customer service with lots of inclusions.
Budget Direct Comprehensive
Optional
Optional
Agreed or Market
Finder's summary: The 2024 winner of our Best Value Car Insurance award. It's cheaper than most, plus you can lower costs by adding age restrictions.

⭐ Current offer: 15% off your first year's premium when you take out a policy online. T&Cs apply.

Who it might be good for: Anyone who wants a good value policy.
Australia Post Comprehensive
Optional
Agreed or Market
Finder's summary: Covers a little more than other insurers. You don’t need to pay an excess for windscreen repairs and cover applies to anyone who uses your car.

⭐ Current offer: Get $75 off your first year's comprehensive car insurance premium when you buy online. T&Cs apply.

Who it might be good for: Multiple people using one car.
Bingle Comprehensive
Market
Finder's summary: Our data shows it’s the cheapest comprehensive policy. It just covers the basics such as damage to your car, theft and storms – it doesn’t go in for add-ons and extras.

Who it might be good for: Those wanting a low-cost, no-frills policy.
Qantas Comprehensive
Optional
Optional
Agreed or Market
Finder's summary: You need car insurance so why not get one that lets you earn Qantas Points? It's good value too (it's underwritten by the same insurer as Budget Direct).

⭐ Current offer: Earn up to 30,000 Qantas Points with every car insured by 30 September. Plus save 15% on your 1st year’s premium when you purchase online. T&Cs apply.

Who it might be good for: People who want more bang for their buck with Qantas Points.
ROLLiN' Comprehensive
Agreed
Finder's summary: One of the most cost-effective insurers for under 25s, according to Finder research, with no aged-based excess.

Who it might be good for: Young drivers looking to keep costs down and anyone who’d like to get more flexibility from their car insurance.
QBE Comprehensive
Green Company
QBE Comprehensive
Optional
Agreed or Market
Finder's summary: Our best-rated Car Insurer for Customer Satisfaction in 2021/2022 and Green Insurer for the last 3 years.

⭐ Current offer: Save $75 when you purchase a new comprehensive policy online. T&Cs apply.

Who it might be good for: Those who want a trustworthy insurer and more cover than other brands, such as 3-year new car replacement (e.g. they'll give you money for a new car for up to 3 years if yours is written off).
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What affects the cost of car insurance?

Why does your car insurance policy cost more than your mum's but less than what your best friend pays? The cost of car insurance is impacted by many factors, all of which are taken into account when calculating your premium. These include:

Aside from compulsory third party (CTP) insurance, which is mandatory for all Australian drivers, there are 3 levels of car insurance cover to choose from: comprehensive, third party fire and theft, and third party property damage. The policy you choose will influence the cost of cover due to:

  • Your level of cover. Comprehensive car insurance provides protection against an extensive range of risks, so it costs a lot more to purchase than a third party policy.
  • Market value or agreed value cover. Does your policy cover your car for its agreed value, which is an amount you and your insurer agree upon when you take out cover, or its current market value, which is determined when you make a claim? Market value cover is the cheaper option, but it does come with its own drawbacks.
  • Your excess amount. Most insurers allow you to adjust the excess payable when you claim in order to vary your premium – the higher your excess, the less you pay for cover, and vice versa.
  • Whether you add optional extras. When you buy car insurance, you may be given the choice of adding extra-cost options to your policy – for example, roadside assistance or excess-free windscreen cover. Adding these extras to your policy will drive up your premium.

As part of the underwriting process, the insurer will assess a number of factors about you and every other driver listed on the policy. Areas they'll examine include:

  • Your age. Due to the fact that young drivers are statistically more likely to be involved in accidents and engage in risky behaviour on the road, car insurance for under 25s is significantly more expensive than it is for older drivers.
  • Your gender. Men, particularly young males, are also more likely to engage in risky behaviour and are, therefore, more likely to need to make a claim. However, your age (if you're an older driver) and marital status (if you're married rather than single) can help reduce the impact of your gender on car insurance prices.
  • Your driving experience. The insurer will consider how much experience you have behind the wheel when calculating the risk of providing cover, which is why car insurance for P-platers and L-platers costs more.
  • Your claims history. Have you previously been involved in an at-fault accident or lodged a car insurance claim? If so, this will force your premium up.
  • Your driving record. If you have a lengthy list of speeding tickets and traffic infringements on your record, you can expect increased premiums.
  • The number of drivers listed. Adding just 1 extra driver to your policy, even if they're the safest driver in the world, will increase your premiums. This is due to the fact that more drivers covered on a policy means a greater chance that you will need to make a claim.

In the eyes of car insurance providers, not all cars were created equal. Some vehicles are more expensive to insure than others for several reasons, and insurers will consider the following factors when calculating your premium:

  • The value of your car. It doesn't take a rocket scientist to work out that a new $80,000 luxury vehicle will cost more to cover than a 10-year-old hatchback worth less than $10,000.
  • How much it costs to repair. Does your car manufacturer have an extensive dealership and service network across Australia? If so, it will typically be easier and cheaper to get spare parts, which means cheaper repair costs and, in turn, lower premiums. Vintage vehicles can be extremely expensive to repair, which is why you may need to have a specialist vintage car insurance policy if you own this type of vehicle.
  • How powerful it is. As a general rule, more cylinders and more horsepower mean higher premiums. If you drive a high-powered or performance vehicle – souped-up Mitsubishi Lancers and Subaru WRXs are 2 models that spring to mind – insurers associate it with risky driving behaviour. Unfortunately, this association will be reflected in your premiums.
  • Your car's security system. Does your car have a sophisticated anti-theft system including an engine immobiliser? If so, this is seen as a powerful deterrent to thieves and can lower your premium.
  • How safe your car is. The safer a car is for its drivers and passengers, the cheaper it is to insure. You can find the safest cars on the market by comparing official ANCAP safety ratings.
  • How popular your car is with thieves. Some makes and models are much more likely to be stolen than others, simply because they're in style or are easier to resell. A highly desirable car will often attract higher premiums.

There are still plenty of other variables that can have a bearing on how much car insurance costs, including:

  • Your state or territory. Insurers will consider the car theft rates in your state or territory when determining the likelihood of you making a claim. The proportion of the population that drives will also be taken into account – the more drivers on the road, the greater the risk of an accident.
  • Your suburb. Does your postcode have a high rate of car theft? Is your suburb prone to severe storms or flooding? If you live in a high-risk area, expect to pay more for cover.
  • Where you keep your car. A car kept locked in a secure garage when not in use is much less likely to be stolen or damaged than one that is left parked on the street.
  • Your driving habits. Do you clock up several-hundred kilometres in busy traffic every week, or is your car only driven for short trips to the shops outside peak periods? The more you drive, especially in busy traffic, the more car insurance will cost.
  • Business use. If you use your car for business purposes, expect to pay more for cover than if your car is for private use only.
  • Any discounts that apply. Insurers offer discounts for everything from buying cover online to being a long-term customer, so keep an eye out for any discounts that may help you save on cover.

Why you can trust Finder's car insurance experts

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FAQs about car insurance costs

Alexandra Koster's headshot
Publisher

Alexandra Koster was Finder's publisher for car, home and pet insurance. She has a Tier 1 certification in General Insurance, as well as a Bachelor of Arts in Film and Cultural Studies from the University of Sydney. Her hobbies include reading Product Disclosure Statements and deciphering complicated insurance lingo to help people save on their insurance so that they can spend their money on better things – like dogs. See full bio

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Editor, Insurance & Innovations

Gary Ross Hunter was an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146). See full bio

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Gary Ross has written 730 Finder guides across topics including:
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