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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.

Alexandra Koster

Gary Ross Hunter

Updated

Dec 1, 2023

Fact checked

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

Brand	Third Party Only	Comprehensive	Apply
Coles	N/A	$138.57	More info
Bingle	$35.03	$121.51	Get quote
Budget Direct	$49.83	$138.87	Get quote
Everyday	$38.52	$200.80	More info
Australia Post	$35.96	$168.94	Get quote
ahm	$43.00	$198.00	More info
Qantas	$56.41	$156.76	Get quote
QBE	$34.54	$194.16	Get quote
Bendigo Bank	$18.82	$115.92	More info
Virgin Money	$50.74	$141.44	More info

_{Quotes obtained September 2022}

*To determine this estimated cost, we sourced quotes using this profile:
Female driver born 15/03/1982
Silver 2021 Toyota Hilux Double Cab Pickup 2.8L Auto
Comprehensive and third party only car insurance
Safe driver with no claims made in the past 3 years
Drives 10,000-15,000 km per year
Adjusted excess to $850 where possible
Driver located in Sydney
Policy starting 30/09/2022
Your cost will differ depending on your circumstances. Some things that can affect the cost of your quote include your gender, the type of car you drive, the colour of the car, how long you have been driving, the amount of cover you need, plus more. Be sure to read the PDS to find cover that suits you.

How much does car insurance cost?

A breakdown of car insurance costs per provider and state
Budget Direct: $1,011.20
Virgin: $1,013.08
Suncorp: $1,711.68
Everyday: $1,277.77
Hume Bank: $1,330.93
CGU: $1,557.99
Bingle: $683.21
Huddle: $1,591.83
Real Insurance: $1,357.18
AAMI: $839.79
Budget Direct: $1,022.99
Virgin: $1,129.81
Suncorp: $1,703.33
Everyday: $1,733.24
Hume Bank: $1,248.68
CGU: $2,595.83
Bingle: $872.21
Huddle: $1,611.67
Real Insurance: $1,838.15
AAMI: $1,121.50
Budget Direct: $739.98
Virgin: $751.75
Suncorp: $953.25
Everyday: $1,101.99
Hume Bank: $1,057.23
CGU: $1,132.77
Bingle: $608.49
Huddle: $1,108.33
Real Insurance: $1,166.65
AAMI: $924.04
Budget Direct: $765.47
Virgin: $780.78
Suncorp: $1,149.87
Everyday: $1,095.25
Hume Bank: $916.99
CGU: $1,230.99
Bingle: $521.37
Huddle: $1,196.33
Real Insurance: $1,164.91
AAMI: $699.23
Budget Direct: $583.88
Virgin: $731.20
Suncorp: $1,298.35
Everyday: $1,061.65
Hume Bank: $978.13
CGU: $1,344.25
Bingle: $548.53
Huddle: $1,086.33
Real Insurance: $1,125.64
AAMI: $1,037.54
Budget Direct: $702.83
Virgin: $716.89
Suncorp: $1,024.32
Everyday: $946.85
Hume Bank: $823.14
CGU: $1,138.86
Bingle: $534.82
Huddle: $1,006.67
Real Insurance: $1,004.17
AAMI: $832.81
We obtained quotes from 35 brands for the 2021 Finder Awards in February 2021. Products were assessed by obtaining prices across 6 different age and gender profiles with an approximate $700-$850 excess.
Average cost of car insurance by state
Based on our research, the cheapest state to get car insurance in is Tasmania with an average of $873 a year.
The most expensive state to get insured in was Victoria, costing Aussie's an average of $1,488 a year.
State Cost
New south wales $1,237.46
Victoria $1,487.74
Queensland $954.45
South australia $952.12
Western australia $979.55
Tasmania $873.13
How much does it cost on average for your age?
When you're younger, you'll pay noticeably more for car insurance as you're deemed to be a higher-risk driver.
But, thankfully, our research says that these high prices don't last! As you get older, your cost should go down as long as you stay a safe driver.
- Age 20: $2,097.35
- Age 30: $1,081.51
- Age 40: $862.97
- Age 50: $793.61
- Age 60: $722.95
We pulled data from the 2021 Finder Awards, and separated the car insurance quotes by driver age. The chart represents the average price across all 6 states.
How much does a third party property damage policy cost?
Based on our research of 6 companies, the average cost of a third party property damage policy is $53.86 a month.
This just covers the financial cost if you damage someone else's car or property.
Bingle: $31.28
AAMI: $55.29
Budget Direct: $48.60
Virgin Money: $49.51
GIO: $55.83
Suncorp: $82.66
To get these costs, we averaged together the cost of a female policy, born on 1/1/1980. Drives a 2018 Toyota Hilux, live in Sydney, drive around 10,000-15,000 kms per year, and adjusted the excess to $850 where possible. Quotes were gathered in September 2021.

State	Cost
New south wales	$1,237.46
Victoria	$1,487.74
Queensland	$954.45
South australia	$952.12
Western australia	$979.55
Tasmania	$873.13

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	Roadside assistance	Choice of repairer	Agreed or Market Value
Budget Direct Comprehensive Finder Award	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.	Get Quote View details	Compare	loading Fetching your data...
Youi Comprehensive Finder Award		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.	Get Quote View details	Compare	loading Fetching your data...
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.	Get Quote View details	Compare	loading Fetching your data...
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.	Get Quote View details	Compare	loading Fetching your data...
QBE Comprehensive Green Company		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).	Get Quote View details	Compare	loading Fetching your data...
Bingle Comprehensive Finder Award			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.	Get Quote View details	Compare	loading Fetching your data...
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.	Get Quote View details	Compare	loading Fetching your data...

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

Buy a popular model. The more popular your car is in Australia, the lower the prices you can expect. Cheap and popular cars make for cheaper car insurance.
Avoid modifications. Australian insurers don't take kindly to car modifications – in fact, mods can increase the cost of cover or potentially reduce the level of cover the insurer is willing to offer. Check in advance how modifying your vehicle will affect your cover before you get the tools out and get to work.
Try aftermarket security. Even if your car was missing important security features when you bought it, you can still install aftermarket systems. VIN etching, for example, is relatively cheap but can make a big difference. Remember that not all insurers will recognise all security systems, so check in advance.

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:

Online discounts if you buy a policy online
Multi-vehicle discounts if you insure more than 1 car
Multi-policy discounts if you also hold a different type of insurance policy with the same provider
Seniors discounts for drivers over the age of 55
Loyalty discounts for long-term customers
Low-kilometre discounts for drivers who only use their vehicle occasionally

Why you can trust Finder's car insurance experts

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.

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.

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.

FAQs about car insurance costs

Car insurance for older drivers is typically much more affordable than it is for drivers under the age of 25. In fact, perhaps the simplest way to lower your car insurance premiums is to grow older. Not only will premiums drop as you gain more experience on the road, but you can build up a reputation with insurers as a safe driver and take advantage of any no-claim bonuses available.
There are several ways that older Australians can reduce the cost of car insurance:
- Seniors discounts. Many insurers recognise your years of experience and good driving habits with discounted cover.
- Low-kilometre policies. If you're driving less than you used to – for example, if you're no longer working full-time and commuting to work – you may be able to save money by choosing a low-mileage policy.
- Restrict drivers. No young drivers getting behind the wheel of your car? You can restrict cover to drivers over 25 or 30 years only, which can significantly reduce your premiums.
- No-claims discount. If you haven't made any car insurance claims in recent years, you may qualify for your insurer's maximum no-claims discount.
However, once you reach 70 years of age, you may find that your car insurance premiums start to increase again. This is due to the fact that people in your age group are more likely to suffer from issues and health problems that may affect their driving, including:
- Sudden medical issues
- Impaired vision or hearing
- Arthritis and other conditions limiting physical movement
- Poorer cognitive functioning
- Greater use of prescription medicines
With this in mind, it's important to compare a range of policies and shop around for affordable cover. You can also check out our guide to seniors car insurance for more information.


New South Wales	$683
Queensland	$608
South Australia	$521
Tasmania	$535
Victoria	$872
Western Australia	$549

Thank you for your feedback!

Alexandra Koster

Alexandra Koster is 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.

Compulsory third party insurance Car insurance for under 21s

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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.

$40 for Third Party Property Damage insurance

$158 for Comprehensive insurance

Comparison of the monthly car insurance costs in Australia

How we got these quotes

How much does car insurance cost?

Plain text version: How much does car insurance cost?

Ready to compare car insurance policies?

What affects the cost of car insurance?

How to reduce your car insurance premium

Why you can trust Finder's car insurance experts

We're free

We're experts

We're independent

We're here to help

FAQs about car insurance costs

How much does car insurance cost for seniors?

What's the cheapest car insurance?

What's the cost of comprehensive car insurance?

What's the cost of third party car insurance?

Alexandra Koster

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