Commuting costs out of control: here’s how you can cut them right now
Between battling bumper to bumper traffic to keeping the tank topped up, Australian drivers are fed up with their commute.
New research from Real Insurance has revealed that 62% of drivers now say their commute is "expensive" or "very expensive."
The insurer found that the average Australian driver is spending $76 a week commuting to and from work, or $3,557 per year.
More than half of Australians (64%) are driving to work, while commute via train has risen to 30%.
However, while most of have the choice in how we get to and from work, Dr. Páraic Carroll, Lecturer in Transport Planning at The University of Melbourne says some Australians are limited to being stuck behind the wheel.
"In outer-urban areas, cost pressures hit harder because driving often isn't a choice, it's a necessity," he said.
"What we're seeing is not lifestyle choice but forced car ownership, a symptom of transport disadvantage that's deepening under the current cost-of-living crisis."
Time to switch car insurance policies?
How Australians are cutting the cost of their commute
With a notable 71% of respondents stating rising cost of living pressures have impacted commuting expenses, 83% have begun implementing cost-saving hacks to reduce the pressure on their wallets.
Almost half 44% have revealed they actively seek the best fuel deals while 30% are avoiding toll roads, leading to a drop in the average toll payment from $8.10 in 2022 to $4.80 in 2025.
While this proactive approach is a great quick savings, Real Insurance has noted that the annual cost for vehicle upkeep (registration, maintenance and car insurance) has risen to just shy of $2,300.
If it’s been a while since you last reviewed your comprehensive car insurance policy, there’s a chance you could find a better deal by shopping around.
For some perspective, following an analysis of more than 30 car insurance policies across 60 different driving profiles, we found that the average cost of a comprehensive car insurance policy is $1,362.
You can use our comparison tool to switch to a cheaper car insurance policy and reduce your annual commute costs.
Sources
Ask a question