How much does car insurance cost?

The average car insurance cost is $82 a month — but we’ve got policies for $50 less.

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The average car insurance cost per month in Australia is $82 — that's for a comprehensive policy. But you don't need to pay that much. In fact, at $32, you might be able to buy comprehensive car insurance for the same price as the average third party insurance policy. We've listed them for you below.

What is the average cost of car insurance in Australia?

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

  • $31 per month for just Third Party Property Damage Insurance
  • $82 for Comprehensive Insurance

Note: Keep in mind that these prices are only 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, where you live, plus more.

Comparison of the monthly cost of car insurance

BrandThird Party OnlyComprehensiveApply
Coles$19.50$32.36Get quote
Bingle$22.20$43.28Get quote
AAMI$29.42$60.26More info
Budget Direct$19.74$60.47Get quote
Virgin Money$20.53$62.89Get quote
GIO$30.05$69.67More info
Suncorp$48.35$78.30More info
NRMA$67.58$109.64More info
CGU$20.55$136.13More info
QBE$28.00$171.20Get quote

To determine this estimated cost, we sourced quotes using this profile:

  • Female driver born 1/1/1980
  • Silver 2016 Ford Falcon 2.0L Auto
  • Comprehensive 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 22/01/2020

We took the annual cost for car insurance, then divided it by 12 to find the monthly cost.

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.

Ready to compare car insurance policies?

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 2019 Finder Award for the Best Value Car Insurance, 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.
Bingle Comprehensive
Market
Finder's summary:Bingle consistently comes up as one of the cheaper insurers out there. It only covers the basics. You don't get to choose your own repairer, you're not covered for personal items in the car and unless you add it as an option, you won't get a hire car if your car is stolen. But this keeps its premiums low.

Who it might be good for: Someone who wants a low-cost option that covers them for the basics.
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.
Virgin Comprehensive
Optional
Optional
Agreed or Market
Finder's summary: Finalists for the 2019 Finder Awards for Best Value Car Insurance, Virgin Comprehensive provides a good level of cover for a decent price.

⭐ Current offer: Get 15% off on your first year’s premium when you purchase a new eligible comprehensive car insurance online. T&Cs apply.

Who it might be good for: People who'd like to manage their policy online 24/7.
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.
Stella Comprehensive
Optional
Agreed or Market
Finder's summary: Stella’s a female-focused insurer. It'll cover you if your car is damaged as a result of domestic violence. It offers higher cover for baby gear than most, with up to $2,000 cover for prams, strollers and child seats.

Who it might be good for: Someone who wants a female-centred car insurance policy (it will cover men too).
PD Comprehensive
Optional
Agreed
Finder's summary: PD comprehensive car insurance policy lets you buy, manage, and start your claims process online. It includes cover for emergency repairs up to $500 and free windscreen chip repair. Ability to customise your extras cover.

⭐ Current offer: New policyholders can enjoy 15% off on their first year's premium. T&Cs apply.

Who it might be good for: Those with low claims history and the only driver.
Poncho Comprehensive
Agreed
Finder's summary: Poncho works like a monthly subscription – you pay monthly and can cancel and leave at any time. You can also list multiple cars and drivers under one policy, making it ideal for families and groups living together under one household.

Who it might be good for: People who want their car insurance month to month.
ahm Comprehensive
Optional
Both
Finder's summary: ahm comprehensive car insurance lets you choose higher excess to reduce your premiums. Its Fixed Kilometre Plan can save you up to 30% compared to its standard comprehensive cover.

⭐ Current offer: Get up to 15% off when you purchase a new car insurance policy. T&Cs apply.

Who it might be good for: People who drive less than 15,000 km per year.
Youi Comprehensive
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.
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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 lots of 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 three 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’ve got a lengthy list of speeding tickets and traffic infringements on your record, you can expect increased premiums.
  • The number of drivers listed. Adding just one 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 two 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

Looking to save money on the cost of car insurance? These three steps take you through the process from start to finish, from buying a car to renewing your subscription.

Stage 1: The Car

Stage 2: Getting Insurance

  • 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've got 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 six 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.

Step 3: On the Road

  • 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:

How much does car insurance cost for seniors?

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.

How much is comprehensive car insurance?

As all the information above shows, the cost of your car insurance premium is at the mercy of an extensive range of factors. From your age and gender to the car you drive, how you drive it and even where you live, the list of factors insurers consider when calculating your premium is a long one.

What this means is that there’s no such thing as an "average" cost for comprehensive car insurance. This is why you may end up paying more (or less) for cover than your friends and family members, and it’s also why you should always shop around for the best value for money. By comparing quotes from a range of insurers
, you’ll get a much clearer idea of the cost of comprehensive insurance and how much you can expect to pay for the cover you need.

Bottom line

If you're still wondering how much car insurance you need, ask yourself a few simple questions:

  • How much will I be using the car?
  • How valuable is my car?
  • Will I be able to afford the repair bills if I crash into another car or property?
  • Is there a high risk of my car being stolen?
  • How much do I depend on my car?

Depending on your answers to these questions will determine which cover suits you best. Whichever option you choose, make sure to compare a wide range of car insurance policies to find the cover you need at an affordable price.

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