Buying a car is only the start of the expense. Ongoing costs matter more over time, and car insurance is one of the biggest regular bills owners face. This guide explains how much car insurance costs in Australia today, shows the average prices by state and territory, compares what drives those differences, and gives practical examples and money saving ideas you can use straight away.
I looked across industry research, regulator reports, and insurer commentary to pull numbers and explain variations. Different studies use different methods, so I show ranges where appropriate and always explain the source of each figure. Key takeaways appear up front, and detailed state level comparisons follow.
Quick summary of what you need to know
- The national average for comprehensive car insurance has been rising and sits in the low thousands of dollars per year for many drivers.
- Premiums differ a lot by state and territory because of factors such as crash and theft rates, repair costs after natural disasters, and local insurance design.
- Some states, like Tasmania, have historically reported much lower average premiums than major population states such as Victoria and New South Wales.
- Comparing policies matters. Two drivers in the same suburb can receive very different quotes depending on the insurer, cover type, excess, and optional extras.
- The rest of this article explains the data in detail and gives examples you can use to estimate your own quote.
What counts as car insurance cost
When we talk about car insurance cost in this guide, we focus primarily on comprehensive cover because it is the policy type that shows the largest variation and the greatest impact on household budgets. Comprehensive policies typically pay for repair or replacement of your vehicle after an accident or theft and also cover damage caused by weather related events depending on the product.
Cost components that influence premiums include
- Policy type, such as comprehensive third party or third party property only
- Vehicle make, model, and age
- Driver profile including age driving history and address
- Annual kilometres and typical use, such as commute or business use
- Chosen excess and optional extras such as new car replacement or hire car after an accident
When sources publish average premiums, they often use different sample vehicles and driver profiles. That is why the precise average numbers vary between research providers. I use recent industry and regulator publications and explain methodology where needed.
National picture and recent trend
Recent research shows rising premiums, but the rate of increase has slowed from the shock increases seen earlier in the decade. Canstar Research found the typical comprehensive policy in 2025 increased versus the prior year by a mid single digit percentage and that switching providers remained a strong way to save. The Insurance Council and industry commentary point to rising repair costs and natural catastrophe claims as the structural drivers of higher premiums.
To put a figure on the national average, consider the following representative estimates from recent studies
- Canstar reported an average comprehensive premium in the low two thousands in 2025 with variation by state.
- The Insurance Council analysis and regulator reports show much lower averages in Tasmania when measured on some government insurer bases and much higher averages in states that have seen steep increases due to theft and severe weather.
These differences matter because the same increase in dollar terms is a higher percentage of income for lower income households and for regionally concentrated populations.
Average comprehensive premiums by state and territory in 2025
Below is a synthesized table that brings together published figures and regulator commentary. Where direct single source numbers exist, I cite that source. Where sources differ, I show a conservative estimated range and explain why. Figures are annual average premiums in Australian dollars for comprehensive cover where available.
