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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.

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

Third party car insurance

$46 for Third Party Property Damage insurance

Comprehensive car insurance

$134 for Comprehensive insurance

Note: Keep in mind that these prices are for a 41-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$130.83Get quote
Bingle
Bingle
$31.28$100.42Get quote
AAMI
AAMI
$55.29$139.17More info
Budget Direct
Budget Direct
$48.60$135.76Get quote
Virgin Money
Virgin Money
$49.51$138.26More info
GIO
GIO
$55.83$128.14More info
Suncorp
Suncorp
$82.66$182.55More info
NRMA
NRMA
$45.04$99.97More info
CGU
CGU
$18.18$130.41More info
QBE
QBE
$28.96$149.51Get quote

Quotes obtained September 2021

How much does car insurance cost?

Ready to compare car insurance policies?

1 - 8 of 8
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: Awarded the 2021 Finder Award for Car Insurance - Value in QLD, SA, TAS, VIC, WA and Car Insurance - Features in NSW, VIC, WA, this policy offers solid coverage at a low cost. Budget Direct's claims service has received a 4.2/5 based on nearly 5,000 customer reviews.

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

Who it might be good for: People who want a comprehensive policy without breaking the bank.
Youi Comprehensive Car Insurance
Optional
Agreed or Market
Finder's summary: Youi Comprehensive Car Insurance is one of the few providers to include roadside assistance in its policy. You'll also get access to YouiRewards which gives you discounts on furniture, parking and more. Youi also has a live chat feature on its site to talk through any questions.

Who it might be good for: People over 25 who want comprehensive cover with a focus on customer service.
Coles Comprehensive
Optional
Agreed or Market
Finder's summary: With Coles comprehensive car insurance, you could earn double flybuys points at Coles supermarkets and you can get $10 off your Coles grocery bill every time you redeem 2,000 Flybuys points. If your car is damaged, you could benefit from a one-week turnaround on repairs.

⭐ Current offer: Get 10% off your first year's premium when you take out a policy online. T&Cs apply.

Who it might be good for: Coles customers and Flybuys collectors.
QBE Comprehensive
Green Company
QBE Comprehensive
Optional
Agreed or Market
Finder's summary: QBE is a sustainable insurance company and also Finder's Green Insurer of the Year 2021 award winner. This policy offers the highest level of protection available from QBE including three-year new car replacement.

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

Who it might be good for: Those that are looking for a more environmentally friendly insurance choice.
Bendigo Bank Comprehensive
Agreed or Market
Finder's summary: Bendigo Bank’s comprehensive policy offers up to $30 million in liability insurance, cover for your personal items and the option of a replacement car if your vehicle is being repaired after an accident.

Who it might be good for: Those who seek the peace of mind that comes with high legal liability and a range of cover benefits.
Australia Post Comprehensive
Optional
Agreed or Market
Finder's summary: Australia Post car insurance offers comprehensive cover for things like theft, fire, new for old replacement and emergency accommodation and transport. Cover also extends to anyone who uses your car, not just you.

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

Who it might be good for: If multiple people use the one car and you don’t want to worry about listing all drivers.
Qantas Comprehensive
Optional
Optional
Agreed or Market
Finder's summary: You'll be able to choose how comprehensive you want your cover to be with optional extras like choice of repairer and the option of agreed or market value.

⭐ Current offer: Earn Qantas Points for joining and paying your premium. Sign up today and earn up to 20,000 Qantas Points (points awarded will be based on your premium). T&Cs and eligibility apply.

Who it might be good for: People who'd like to earn Qantas Points.
Woolworths Comprehensive
Optional
Agreed or Market
Finder's summary: Woolworths has some unique perks like a price-beat guarantee where it'll beat any current comparable comprehensive renewal notice if you're over 25. You can also get 10% off your grocery shop once a month and can add roadside assistance onto your policy for just $7.33 per month.

⭐ Current offer: Save up to 15% when you buy online. T&Cs apply.

Who it might be good for: Woolworths shoppers and those that want to take advantage of its price-beat guarantee.
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Compare up to 4 providers

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:

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:

FAQs about car insurance costs

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