Car insurance costs explained

The average cost of comprehensive car insurance in Australia from 2019 to 2024 was $1052, according to the Insurance Council of Australia. Keep in mind, that’s an average across the 5-year period for comprehensive insurance only, and more current research from other sources has the average figure considerably higher.

For some drivers with newer or high‑value cars, car insurance costs could be considerably more.

Generally, comprehensive cover such as our Comprehensive Car Insurance tends to cost more than other levels of car insurance cover, because it intends to offer the most complete level of protection, such as cover for damage to your own car as well as others on the road.

On the other hand, third party car insurance options such as Third Party Property Damage Car Insurance usually costs less, as these policies intend to only cover damage you cause to someone else’s vehicle or property.

Rather than relying solely on averages, it’s often more helpful to focus on your own personal circumstances and the level of cover you feel comfortable with. Get a quote with us and choose a policy that fits your needs, not just the typical price range.

Yes. Excess is the out-of-pocket amount you might have to pay in the event of a claim. Often opting to have a higher excess at claims time, can help reduce what you pay meaning lower premiums when you first buy your policy or when you renew your policy, which could help you manage your monthly or annual insurance costs.

Read more at: What is an excess and who pays it?

Yes. We offer a range of discounts that could apply to eligible insurance policies:

• Relationship Discount – you could qualify for a Relationship Discount when you’ve had an eligible policy with us for 5 years in a row².
  
  
• Multi-Product Discount – you could qualify for a Multi-Product Discount when you have 2 or more eligible policies with us³. For more information about how our discounts work, visit our customer discounts page.
  
  
• Online Discount – you could get up to 10% off your first year’s premium when you buy an eligible policy online⁴.

There’s a number of things that can contribute to rising car insurance costs at renewal time including:

Repair and replacement costs
Inflation can impact costs across the board, from the price of parts and materials, to vehicle towing and storage fees, government levies and duties, and the affordability of labour costs set by repairers. These factors make it more expensive to repair and replace cars, which can increase insurance prices at renewal time.

Car complexity
New cars are becoming more complex, with specialised systems like Advanced Driver Assistance Systems (ADAS) or adaptive cruise control. These systems can require their own parts and materials, along with dedicated testing and calibration tools that are operated by repairers with advanced training.

Reinsurance costs
Reinsurance is insurance for insurers. It helps guarantee our ability to pay out claims, especially after a major event like severe weather (bushfire, flood, or storm). As Australia continues to experience more severe weather events, reinsurance costs have gone up, which may impact premiums at renewal time.

Costs of a claim
Insurance premiums generally reflect the likelihood of claims in the future and the anticipated costs of a claim, if one is made. This means estimates can change year to year, even if your personal circumstances at renewal time remain the same.

Pricing is an important consideration, but it’s not the only one. Along with your budget, the type of insurance you choose may also be influenced by your lifestyle; such as your driving habits, who else uses your car and whether you’ve recently relocated.

Here are some questions you can consider during renewal time:

Has the value of your car changed?
Over time, the value of your car may depreciate based on its age. Lifestyle changes could also mean that you’re driving your car more or less often than you used to. There may no longer be finance, like a loan or a lease, on your car. Check your details at renewal time, including your excess, and consider whether your policy suits your current circumstances and car usage.

Read more at: What is an excess and who pays it?

Have you reviewed the sum insured for your car?
Unless you have selected third party property car insurance, your vehicle will be covered for a sum insured. 

The sum insured you have selected is displayed on your Certificate of Insurance. You may have had the option to select a sum insured that is either the market value or agreed value of your car. For market value, we calculate your car’s value at the time of a claim, if one is made. For agreed value, you nominate a fixed amount from a range of values we provide. When you renew, you can review your agreed value sum insured and make sure it still reflects the current value of your car.

Read more at: What does sum insured mean?

Have you changed your residential address or added occasional drivers?
You might have changed where you live or where you store your car (in a garage or on the street). You might have started to share your car with more drivers, such as a spouse or teenage kids. Check you’ve got the details right for the authorised drivers on your policy, including their ages.

Read more at: Do I need to add occasional drivers to my policy?

Have you considered a different level of cover to suit your needs and budget?
We have a range of car insurance policies to help you find one that suits your needs. Take some time to review our policies and what’s best for you. 

To update your policy, you can make changes in your online account or contact us for more options.