Average cost of Australian car insurance has risen by 16 per cent in a year
10/02/2024 11:01 PM
Australians are now paying an average of $1717 for annual comprehensive car insurance, but some states are pricier than others.
A new report analysing nearly 300,000 Australian car insurance quotes canvassing 33 providers has revealed car insurance premiums have risen in cost by 16 per cent in the last 12 months.
The report, by insurance comparison website Mozo, reveals Australians now pay an average of $1717 per year for comprehensive car insurance.
The increase is in line with consumer price index (CPI) data that shows premiums (including house and home and contents insurance) have risen 14 per cent since last year.
Mozo attributes the increase in car insurance premiums to “higher reinsurance, an increasing occurrence of natural disasters and higher claims costs”.
Outside of the average, another survey revealed that 47 per cent of 2129 respondents are paying between $100-$300 more for car insurance than last year, with small numbers reporting increases of over $900.
Broken down by state, Victoria is paying the most for car insurance, averaging $2139 per vehicle, while Tasmania is where it is cheapest to have car coverage, averaging $1301.
New South Wales (averaging $1994) and the Northern Territory (averaging $1892) are also expensive areas to insure a car, while Queensland ($1522), South Australia ($1515), Western Australia ($1515), and the Australian Capital Territory ($1542) were line ball with each other.
Naturally, young male drivers (20 years old and under) are copping higher insurance premiums with an average $3966 quote, while equivalent female drivers pay roughly $900 less.
According to the data, premiums will decrease as drivers move into older age brackets but become more expensive again for drivers over 70 years of age.
The cheapest car insurance age group is 60 to 69.
Also affecting premiums, surprisingly, is the vehicle fuel type, with electric cars costing on average $2767 to insure, which is substantially more than a petrol (averaging $1597) or hybrid (averaging $2206) vehicle.
Black cars are also more expensive to insure at $1794 on average, compared with brown cars (averaging $1571) for coverage.
The age of a car also affects costs, with older cars (11-20 years old) costing less than new and near-new models.
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