Car insurance isn’t exactly cheap, but how much you’ll pay depends on a bunch of factors—your age, car type, driving history and even your postcode. So, what’s the average cost of car insurance in Australia?
There is no single official national average. Recent Australian research puts the average comprehensive premium anywhere from around $1,362 a year (Finder, September 2026) to around $2,226 a year (Canstar, April 2026), because the two measure different policies and driver populations. What you pay depends on your age, car, postcode and insurer.
Want to know what’s driving your premium up (or down)? Stick around—we’ll break it all down and even share some tips to help you save.
What’s the Average Cost of Car Insurance in Australia? A Quick Overview
Car insurance costs in Australia aren’t one-size-fits-all. They vary based on personal details and your ride. There is no single official national average: Canstar and Finder each publish one, and they differ materially because their methodologies and driver populations differ (see the comparison below). Your age, car type, how you use it and even where you park all play a role in shaping your final price tag.
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What Factors Affect the Cost of Car Insurance in Australia?
Car insurance premiums aren’t set in stone—several factors come into play when insurers calculate your costs. Knowing what influences your premium can help you make smarter choices and even lower your expenses while keeping the right level of coverage.
Age of the Vehicle
Your car’s age plays a big role in how much you pay for insurance. Newer cars tend to have higher premiums because they’re packed with advanced tech and costly parts that are expensive to repair or replace. On the flip side, older cars usually cost less to insure since their parts are more affordable and their market value has dropped, making them less risky for insurers.
Car Make and Model
Not all cars are equal in the eyes of insurers. Sports cars and luxury vehicles often come with hefty premiums due to their high repair costs and the increased risk of accidents. Meanwhile, reliable, safety-focused cars with good crash ratings and lower repair costs are generally cheaper to insure.
Location
Where you live can impact your insurance costs more than you’d think. City dwellers usually pay more due to higher risks of accidents, theft and vandalism. If you’re in a rural area, you might score lower premiums thanks to less traffic and crime, though some remote locations can have higher costs due to risks like wildlife collisions.
Driving History
A clean driving record can work wonders for your premium. If you’ve avoided accidents, claims and traffic violations, insurers see you as a low-risk driver, which often means discounts and no-claim bonuses. But if you’ve racked up speeding fines or past claims, expect to pay more.
Security Features
The safer your car, the better your chances of getting a lower premium. Vehicles with anti-theft systems, immobilisers or tracking devices are less likely to be stolen, which can lead to insurance discounts. The more security features your car has, the more insurers may be willing to cut you a deal.
How Age Affects the Average Cost of Car Insurance in Australia
Age is a significant factor in car insurance. It influences how insurers view your risk potential. Generally, different age groups will see varied premium costs based on statistical data regarding their driving behaviour.
Drivers Under 25
Younger drivers, typically under 25, often face the highest premiums, averaging between AUD 1,800 and AUD 2,500 annually. This cost reflects their increased risk profile due to inexperience and a statistically higher likelihood of being involved in accidents. Insurance companies categorise this age group as high-risk, leading to significantly higher insurance costs compared to more experienced drivers.
Drivers Between 25 and 60
Drivers aged between 25 and 60 generally benefit from more affordable car insurance rates, with average premiums ranging from AUD 700 to AUD 1,200 per year. This reduction is due to their growing driving experience and lower accident rates. As drivers mature and extend their record of safe driving, they often enjoy further reductions in their insurance costs.
Senior Drivers
For drivers over 60, premiums can begin to rise again, typically costing between AUD 800 and AUD 1,500 annually. Despite their extensive driving experience, this age group may face increased premiums due to factors like diminished vision and slower reaction times, which insurers consider when assessing risk.
How Car Insurance Costs Vary by State and What Drives the Difference
Averages you’ll see quoted for “the cost of car insurance in Australia” vary a lot depending on who’s doing the counting — and it’s worth knowing why before you treat any single number as gospel. Two of the most-cited Australian sources currently put the picture quite differently:
- Canstar’s Car Insurance Star Ratings research (data last updated 10 April 2026) puts the national average comprehensive premium at around $2,226 a year, based on its star-rating database of policies.
- Finder’s car insurance research (published 22 September 2026), which requested live quotes from more than 30 comprehensive insurers across 60 driver profiles, found a national average of around $1,362 a year ($134 a month) for comprehensive cover.
The gap between them comes down to methodology — a star-rating database of listed policies isn’t the same as a live-quote panel across specific driver profiles — not one source being “wrong.” The practical takeaway: treat any single average as a rough compass, not a quote, and always compare your own live quotes rather than budgeting to a published national figure.
Average cost by state
What both sources agree on is the relative pattern between states, even where the dollar figures differ:
| State/territory | Canstar (Apr 2026) | Finder (Sep 2026) |
|---|---|---|
| Victoria | $2,940 | $1,721 |
| New South Wales | $2,570 | $1,698 |
| Northern Territory | $2,283 | not separately reported |
| Western Australia | $2,032 | $1,242 |
| Queensland | $2,010 | $1,274 |
| South Australia | $1,970 | $1,233 |
| Tasmania | $1,785 | $1,128 |
Victoria and New South Wales consistently come out as the most expensive states to insure a car in, and Tasmania consistently comes out cheapest, across both datasets — even though the absolute dollar figures differ by a wide margin. Higher-density traffic, theft rates and claim costs in the bigger eastern-seaboard cities are generally cited as the main drivers of the NSW/VIC premium, while Tasmania’s smaller population and lower claim frequency keep it at the bottom of both lists.
Average cost by age (a bigger factor than location for most drivers)
Age remains the single biggest lever in both datasets. Finder’s live-quote research (Sep 2026) breaks it down by age as follows:
| Driver age | Average annual premium |
|---|---|
| 20 | $2,387 |
| 30 | $1,293 |
| 40 | $1,116 |
| 50 | $1,010 |
| 60 | $899 |
Canstar’s April 2026 research found a similar pattern using a different age split: males under 25 averaged around $3,020 a year, compared with around $1,260 for drivers over 50 — roughly a 2.4x difference, consistent with the steep age curve Finder found. Whichever source you look at, the story is the same: a driver in their 20s can expect to pay noticeably more than a driver in their 40s or 50s for an otherwise similar policy, and that gap generally narrows (rather than reversing) once a driver builds a multi-year no-claim history.
Does the type of car change the premium?
Yes — though neither of the sources above published a specific dollar breakdown by vehicle type for the Australian market at the time of writing, so we won’t invent one. What insurers do consistently price on is risk and repair cost, not simply the car’s purchase price: a car with a high market value, expensive or hard-to-source parts, a stronger performance profile, or a poor safety/crash-test rating will generally attract a higher premium than a similarly priced but more mainstream, well-rated model with cheaper parts and lower theft rates. If you’re comparing two specific vehicles, the most reliable way to see the actual difference is to get a live quote for each — insurer risk-rating tables for make and model aren’t public, so any figure quoted without a live quote is an estimate at best.
Get a Clearer Picture for Your Own Situation
National and state averages are a useful starting point, but your own premium depends on your postcode, driving history, the specific vehicle, your excess choice and the level of cover you pick. If you’d like help comparing options for your situation, get in touch with our team or read our guide on how excess affects your premium for another lever you can control.
Types of Car Insurance Claims
Understanding the types of claims can also guide you in choosing the right coverage and potentially avoiding high premiums based on the risks you might face.
- Accident Claims: These are among the most common types of claims and involve collisions with other vehicles or objects. The frequency and severity of these claims can significantly affect insurance rates.
- Theft Claims: Cars at higher risk of theft might attract higher premiums. However, having robust security measures in place can mitigate this impact.
- Weather Damage Claims: In regions prone to severe weather conditions, claims related to environmental damage can be common, influencing insurance costs.
- Vandalism: Urban areas might see higher rates of vandalism claims, which can affect the overall cost of insurance.
- Windshield Damage: Although generally minor, windshield claims are frequent and can impact no-claim bonus statuses and subsequent premium calculations.
Wrapping Up
Car insurance costs in Australia aren’t one-size-fits-all. Published national averages differ depending on the source and method, so treat any single figure as a rough guide. Your final price will depend on factors like your age, car type and location.
The more you understand what affects your premium, the better equipped you’ll be to find a policy that suits both your needs and your budget. With the right knowledge, you might even score a lower rate without sacrificing the coverage you need.