Finder makes money from featured partners, but editorial opinions are our own.

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.

We took the average of 10 car insurance brands and found that the average monthly car insurance premium cost was:

Third party car insurance

$40 for Third Party Property Damage insurance

Comprehensive car insurance

$158 for Comprehensive insurance

Note: Keep in mind that these prices are for a 40-year-old female Sydney-sider. Your cost will be determined by a multitude of factors, including how old you are, your sex, the type of car you drive and where you live.

Comparison of the monthly car insurance costs in Australia

BrandThird Party OnlyComprehensiveApply
Coles

Coles car insurance

N/A$138.57More info
Bingle
Bingle
$35.03$121.51Get quote
Budget Direct
Budget Direct
$49.83$138.87Get quote
Everyday

Everyday logo

$38.52$200.80More info
Australia Post

Australia post

$35.96$168.94Get quote
ahm

ahm

$43.00$198.00More info
Qantas
Qantas
$56.41$156.76Get quote
QBE
QBE
$34.54$194.16Get quote
Bendigo Bank

Bendigo bank

$18.82$115.92More info
Virgin Money
Virgin Money
$50.74$141.44More info

Quotes obtained September 2022

How much does car insurance cost?

How safe is your car?

59% of Australians say they aren't taking extra precautions to reduce the chances of their car being stolen. According to our consumer sentiment tracker, 15% of people hide their keys in the house, 14% of people have CCTV and 9% of people have an alarm system. Many insurers will lower your premium if you can keep your car secured somewhere safely at night.

Ready to compare car insurance policies?

1 - 7 of 25
Name Product Roadside assistance Accidental damage Storm Choice of repairer Agreed or Market Value
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.
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.
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.
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).
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 20,000 Qantas Points with every Qantas Car Insurance policy you take out by 22 April. T&Cs apply.

Who it might be good for: People who want more bang for their buck with Qantas Points.
loading

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.

How to reduce your car insurance premium

  • Shop online & compare. Put in the time and effort, and you're sure to save money in the long run. Comparing online is usually cheaper and allows you to compare the features and cost of car insurance policies side-by-side.
  • Choose the right level of cover. Know what cover you need. If you have a banged-up old runabout, you probably only need basic cover such as a third party property policy.
  • Match policy to use. Try finding a policy that suits your typical car use. For example, if you only drive 6 months a year, a pay as you drive policy may be the best option for you.
  • Choose a higher excess. By adjusting your excess to a higher level, you can access cheaper car insurance premiums. Just make sure your excess is still affordable should you need to make a claim.
  • Don't add options you don't need. Before adding any extra-cost options to your policy, have a long, hard think about whether or not you actually need them.
  • Restrict drivers. Adding a young driver to your car insurance policy will substantially increase your premiums. However, if you can declare that no-one under the age of 25 will drive your car, many insurers will offer significant discounts.
  • Don't make cheap claims. It might be cheaper to pay out of your own pocket for smaller expenses rather than claiming them on insurance. Maintaining a no-claims history, or a reputation as a safe driver, can make a substantial difference to your premium.
  • Avoid infringements. It's easier said than done, but try to avoid running up a long record of traffic violations that will follow you around and keep bumping up your car insurance costs.
  • Watch for extra charges. Some (but not all) insurers will charge more for cover if you pay your premiums by the month rather than as an annual lump sum.
  • Review cover regularly. The final tip to remember is to regularly review your car insurance policy to check that it still matches your needs. Compare similar policies from a range of insurers and don't be afraid to switch car insurance providers if you find a better deal.
  • Take advantage of discounts. Check with your insurer to see if there are any discounts available, such as:

Why you can trust Finder's car insurance experts

free

We're free

You pay the same as buying directly from the car insurer. Better still, we regularly run exclusive deals that you won't find on any other site – plus, our tables make it easy to compare policies.
expert advice

We're experts

Our team of car insurance experts have researched and rated dozens of policies as part of our Finder Awards and published 330+ guides to make it easier for you to compare.
independent

We're independent

Unlike other comparison sites, we're not owned by an insurer. That means our opinions are our own and we work with lots of car insurance brands, making it easier for you to find a good deal.
help

We're here to help

Since 2014, we've helped 300,000+ people find car insurance by explaining your cover options, simply and clearly. We'll never ask for your number or email. We're here to help you make a decision.

FAQs about car insurance costs

More guides on Finder

Ask a Question

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our 1. Terms Of Service and 6. Finder Group Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Go to site