Car insurance is one of the biggest ongoing costs of car ownership. Average comprehensive insurance in Australia is $1,400-1,800/year, but it varies wildly. from $800 for a mature driver in a Corolla to $4,000+ for a young driver in a sports car.
Average Insurance Cost by Age
| Driver Age | Average Annual Premium |
|---|---|
| Under 25 | $2,400 - $4,500 |
| 25-29 | $1,600 - $2,800 |
| 30-39 | $1,200 - $2,000 |
| 40-49 | $1,000 - $1,700 |
| 50-59 | $900 - $1,500 |
| 60+ | $800 - $1,400 |
Age is the single biggest factor in your premium. Young drivers cost insurers 3-4x more in claims.
Average Insurance by Car Type
| Car Type | Average Premium |
|---|---|
| Small hatchback (Swift, Yaris) | $1,000 - $1,500 |
| Medium sedan (Camry, Mazda3) | $1,200 - $1,800 |
| SUV (RAV4, CX-5) | $1,400 - $2,200 |
| Ute (HiLux, Ranger) | $1,600 - $2,500 |
| Luxury (BMW 3 Series) | $2,000 - $3,500 |
| Performance (Golf GTI, WRX) | $2,500 - $4,500 |
| Electric (Tesla Model 3) | $1,800 - $2,800 |
Types of Car Insurance
- Comprehensive. covers damage to your car AND others. Recommended if your car is worth more than $5,000. $1,000-3,000/year.
- Third Party Property. only covers damage you cause to other people's cars. Good for older, low-value cars. $300-600/year.
- Third Party Fire & Theft. third party property + covers if your car is stolen or catches fire. $400-700/year.
- CTP (Compulsory Third Party). covers injury to people. Mandatory. Included in your registration. $300-700/year depending on state.
How to Reduce Your Premium
- Increase your excess. going from $500 to $1,000 excess can save 15-25% on premium
- Named driver policy. restricting who can drive your car reduces risk for the insurer
- Pay annually. monthly payments include interest. Paying annually saves 10-15%
- Bundle policies. same insurer for car + home can earn multi-policy discounts
- Park off-street. garage or carport reduces theft/damage risk
- Install a dashcam. some insurers offer discounts or faster claims processing
- Choose a safe car. 5-star ANCAP rated cars with AEB attract lower premiums
- Compare every year. loyalty doesn't pay. Quote with 3-4 insurers at renewal
What Affects Your Quote Most
- Your age and driving history (biggest factor)
- Car value and repair cost (luxury/EV parts are expensive)
- Your postcode (high-theft areas = higher premiums)
- Annual kilometres (less driving = less risk)
- Excess amount (higher excess = lower premium)
- Safety rating (5-star cars with AEB cost less to insure)
Factor Insurance Into Your Car Purchase
Always get an insurance quote BEFORE you buy a car. A $40k car with $3,000/year insurance costs more to own than a $45k car with $1,500/year insurance over 5 years.
Our comparison pages show estimated annual insurance costs for every vehicle, so you can factor this into your decision.
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Disclaimer: All information in this article was believed to be correct at the time of publishing (16 March 2026). Prices are manufacturer recommended retail prices (RRP) and may vary by state, dealer, and options. Specifications, government incentives, and rebates can change without notice. Always verify details with the manufacturer or relevant authority before making a purchase decision. Running cost estimates are based on average Australian driving conditions at 15,000 km/year. All opinions are editorial and independent. CarSorted does not accept payment for recommendations or rankings.
Published by CarSorted Editorial Team · 16 March 2026
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