The Burrow
You might have just bought a new car, or you could be looking to upgrade your level of car insurance. Whatever the reason, when it comes time to sort out your cover, it’s worth knowing what the average cost for car insurance is in Australia.
Based on the findings of Compare the Market’s representative Bill Shock Tracker survey, where 1,501 respondents were asked how much they spent per month on car insurance, the average cost of car insurance in Australia is $101.70 a month,* or $1,220.40 per year.1
Here’s a more detailed look at the numbers.
Younger drivers pay more on average for car insurance, which is largely driven by road accident statistics in Australia which show younger drivers are more likely to be involved in a car accident.2 In 2020, one-in-five road fatalities involved someone aged between 17 and 25 years old, according to the National Road Safety Strategy.3
This lack of driving experience can hurt younger drivers when it comes to their monthly premiums. The table below shows how much Australians pay on average for car insurance, based on age.
| Age group | Average monthly car insurance cost | Average annual car insurance cost |
| 18-24 years old | $142.70 | $1,712.40 |
| 25-34 years old | $114.20 | $1,370.40 |
| 35-44 years old | $105.20 | $1,262.40 |
| 45-54 years old | $106.20 | $1,274.40 |
| 55-64 years old | $91.20 | $1,094.40 |
| 65+ years old | $72.70 | $872.40 |
| Source: Compare the Market Bill Shock Tracker, Compare the Market. 2021. | ||
According to the data, those in New South Wales pay significantly more for their annual car insurance premiums, at an average of $120 a month ($1,440 a year), while drivers in Western Australia have the cheapest average car insurance costs at $88.60 a month ($1,036.20 a year).
| State/territory | Average monthly car insurance cost | Average annual car insurance cost |
| NSW | $120.00 | $1,440.00 |
| QLD | $85.70 | $1,028.40 |
| VIC | $98.60 | $1,183.20 |
| SA | $103.20 | $1,238.40 |
| WA | $88.60 | $1,036.20 |
| ACT, Tasmania and NT* | $93.63 | $1,123.60 |
| Source: Compare the Market Bill Shock Tracker, Compare the Market. 2021. *Notes: Due to a low number of participants, some figures from these states and territories were grouped together. | ||
Men pay higher car insurance costs on average than women. This is largely due to younger men having higher car insurance premiums than women of the same age. Young men pay more for car insurance than women of the same age as they are three times more likely to be involved in road fatalities, according to the Australian Road Deaths Database report for 2018.4
When all ages are taken together, the average cost is much closer between the two genders.
| Gender | Average monthly car insurance cost | Average annual car insurance cost |
| Men | $103.80 | $1,245.60 |
| Women | $99.80 | $1,197.60 |
| Source: Compare the Market Bill Shock Tracker, Compare the Market. 2021 | ||
These averages could be markedly different to how much it costs to insure your own car, and you should exercise caution in applying these averages to your car before purchasing a car insurance policy.
To get an idea of what the average cost of car insurance in Australia could be, we used the top four most popular car models (based on car insurance sales with Compare the Market, Australia’s biggest car insurance price comparison website) to get some average prices. These were the:
As location has a big impact on cost, we put together some price averages for Sydney, Melbourne and Brisbane.
| Car model | Male primary driver average | Female primary driver average |
| Toyota Corolla | $1,027.93 | $1,011.51 |
| Mazda 3 | $1,106.38 | $1,075.39 |
| Toyota Hilux | $1,119.56 | $1,201.04 |
| Holden Commodore | $1,105.42 | $1,067.19 |
| Notes: Based on a 35-year-old male and a 35-year-old-female primary driver residing in postcode 2148 with no claims in the last five years getting quotes for comprehensive car insurance. All car models were manufactured in 2016 and had no dealer options, modifications or pre-existing hail damage. Only included quotes with an excess of $900 in calculating the average based on results from Compare the Market’s car insurance comparison service. Prices are annual and are correct as of 13/09/2021 and subject to change. | ||
| Car model | Male primary driver average | Female primary driver average |
| Toyota Corolla | $990.20 | $781.25 |
| Mazda 3 | $1,070.45 | $1,035.04 |
| Toyota Hilux | $1,167.78 | $1,142.13 |
| Holden Commodore | $1,074.55 | $1,033.90 |
| Notes: Based on a 35-year-old male and a 35-year-old-female primary driver residing in postcode 3121 with no claims in the last five years getting quotes for comprehensive car insurance. All car models were manufactured in 2016 and had no dealer options, modifications or pre-existing hail damage. Only included quotes with an excess of $900 in calculating the average based on results from Compare the Market’s car insurance comparison service. Prices are annual and are correct as of 13/09/2021 and subject to change. | ||
| Car model | Male primary driver average | Female primary driver average |
| Toyota Corolla | $736.95 | $735.77 |
| Mazda 3 | $805.20 | $781.25 |
| Toyota Hilux | $890.41 | $870.87 |
| Holden Commodore | $1,094.72 | $1,072.09 |
| Notes: Based on a 35-year-old male and a 35-year-old-female primary driver residing in postcode 4169 with no claims in the last five years getting quotes for comprehensive car insurance. All car models were manufactured in 2016 and had no dealer options, modifications or pre-existing hail damage. Only included quotes with an excess of $900 in calculating the average based on results from Compare the Market’s car insurance comparison service. Prices are annual and are correct as of 13/09/2021 and subject to change. | ||
If we were to take an average car insurance cost from all three cities, we would get the following prices:
It’s important to keep in mind that these averages reflect a diverse range of prices with a difference of hundreds of dollars between the cheapest and the most expensive policy.
These averages could be wildly different to how much it costs to insure your own car, and you should exercise caution in applying these averages to your car before purchasing a car insurance policy.
There are so many factors that contribute to the cost of car insurance, some of which you can choose (e.g. level of cover and whether you apply age restrictions to other drivers who use your car) and others that you can’t control, such as your age and gender. Getting your own quotes will give you a much better idea of what car insurance will cost for your situation.
Car insurance companies will set your annual premiums based on specific formulas which include:
While all motorists require Compulsory Third Party (also known as CTP or Greenslip cover) to drive on the road, this only covers you for legal liability should you cause bodily injury to others. It doesn’t allow for additional coverage such as collision, fire, theft, not at fault accidents and more.
There are several different types of car insurance, from third party property damage to comprehensive coverage policies. Choosing a lower level of cover means you will have a lower premium but might not have the full coverage you’re looking for. You can see exactly what is and isn’t covered in the product disclosure statement (PDS for short).
You can compare car insurance policies in minutes, for free, with Compare the Market. Our car insurance comparison service is easy to use and lets you weigh up policies by coverage, price, excess payment and other features. If you see a deal you like, you can purchase right then and there – if you already have cover, we can help you switch over with ease.
Simples!