These are the cheapest cars to insure in Australia
10/04/2024 01:00 AM
New data has revealed the car brands that attract the cheapest – and most expensive – car insurance premiums.
Australian car insurance premiums have risen by 16 per cent in the last 12 months, with the average policy now costing $1717 a year.
A new report from insurance comparison website Mozo analysed nearly 300,000 car insurance quotes across 33 brands to identify the factors pushing up insurance premiums.
RELATED: Car insurance premiums jump 16 per cent in 12 months – report
According to the analysis, the most costly profile for car insurance purposes is a male driver under 20 years of age living in Victoria and driving an electric car.
Victorians are paying the most of any state, averaging $2139 per vehicle per year, while young male drivers under 20 face average premiums of $3966 – which is roughly $900 more than women of the same age.
Electric car owners are also feeling the pinch, paying up to 70 per cent more for insurance than petrol or diesel owners, with average premiums of $2767. Hybrids aren’t far behind, attracting average premiums of $2205.
The cheapest fuel type to insure is LPG with an average premium of $1303, closely followed by diesel, which averages $1597 per year.
While fuel type, location and owner profile can all influence your premium, another major factor is the make of your chosen car, with some brands attracting substantially higher premiums than others on average.
Unfortunately, some of the cheapest car brands to insure are now-defunct manufacturers that no longer sell cars in Australia, including Daewoo, Proton, Daihatsu, Saab, Hummer, Foton, Holden and Great Wall Motors – which was the precursor to today’s GWM brand. Their low premiums are likely due to the age and cost of the cars being insured.
If you exclude inactive car makers from the list, the most affordable car brand to insure in Australia is Mahindra, with an average annual premium of $1179.
The other brands with affordable average premiums include Citroen ($1325), Suzuki ($1392), Chery ($1413), Skoda ($1448), Subaru ($1459) and Mitsubishi ($1492).
Meanwhile, on the opposite end of the spectrum, the more expensive cars to insure came from premium, performance-focussed brands like Maserati (an average annual premium of $5232), Mercedes-AMG ($3940) and Porsche ($3363).
However, there were a couple of noteworthy outliers, including Tesla – whose all-electric range likely contributed to an average premium of $3262.
Similarly, Chevrolet recorded an average premium of $3546 for its cars, likely because it predominantly sells the super-sized Silverado ute and the Corvette sports car in Australia, while the average premium for Ram – which sells the heavy-duty 1500, 2500 and 3500 utes – was $3148.
The size of a vehicle can play a part in jacking up premiums, as it raises the likelihood of more severe damage in the event of an accident.
“If the accident is likely to be an expensive one, then you’ll pay more for insurance,” Tim Bennett, an insurance expert from Finder, previously told Drive.
Other unexpected brands on the list of the most expensive cars to insure included off-road-focussed brands like Ineos, Jeep and Land Rover.
According to Savvy Insurance, “off-roading increases the likelihood of accidents and vehicle damage, which can lead to higher premiums”.
The cheapest cars to insure
- Daewoo – $703
- Proton – $765
- Saab – $893
- Foton – $921
- Great Wall Motors – $961
- Daihatsu – $1068
- Mahindra – $1179
- Hummer – $1286
- Citroen – $1325
- Suzuki – $1392
- Holden – $1402
- Chery – $1413
- Skoda – $1448
- Subaru – $1459
- Mitsubishi – $1492
- Hyundai – $1532
- Ssangyong – $1556
- Ford – $1566
- Honda – $1574
- Mazda – $1580
The most expensive cars to insure
- Maserati – $5232
- Mercedes-AMG – $3940
- Chevrolet – $3546
- Porsche – $3363
- Tesla – $3262
- Ram – $3148
- Ineos – $3104
- Range Rover – $2623
- Infiniti – $2585
- BMW – $2561
- Land Rover – $2500
- Audi – $2412
- Mercedes-Benz – $2382
- Lexus – $2273
- Jaguar – $2271
- HSV – $2055
- Jeep – $2029
- LDV – $1966
- Chrysler – $1956
- Cupra – $1940
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