Car insurance in Australia can feel like a guessing game, especially when you’re young. A driver under 25 pays an average of $2,706 to $3,020 per year for comprehensive cover, while someone aged 50 and over pays roughly $1,260. That’s a difference of over $1,400 a year for the same type of policy, and it’s not because younger drivers are unlucky — it’s because insurers use age as a major risk signal.
Disclosure: Some links on this page are affiliate links. If you make a purchase through them, Britwealth may earn a commission at no extra cost to you. We only include products and services that are relevant to the topic.
This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
These numbers come from two different surveys, so they don’t match exactly — but the pattern is consistent. The youngest drivers pay roughly double what the oldest drivers pay. And it’s not just about age. Gender, location, the car you drive, and even how often you drive all feed into the final figure. Here’s what you actually need to know.
Before we go further, let’s pin down a term you’ll see everywhere. Comprehensive car insurance covers damage to your own vehicle as well as damage you cause to others. It’s the most common type of cover and the one these averages are based on.
How age changes your premium — and what that costs in real dollars
The relationship between age and premium isn’t a straight line. It drops steeply in your twenties, levels out through your thirties and forties, then falls again after 50. The table below shows the monthly and annual averages from one survey of over 1,500 respondents.
→ Scroll right to see all columns
| Age Group | Average Monthly Premium | Average Annual Premium |
|---|---|---|
| 18–24 | $142.70 | $1,712.40 |
| 25–34 | $114.20 | $1,370.40 |
| 35–44 | $105.20 | $1,262.40 |
| 45–54 | $106.20 | $1,274.40 |
| 55–64 | $91.20 | $1,094.40 |
| 65+ | $72.70 | $872.40 |
Notice the jump between the 18–24 group and the 25–34 group: a drop of about $28 per month, or $342 per year. That’s the single biggest age-related reduction you’ll see. The 35–44 and 45–54 groups are nearly identical, which suggests insurers see those decades as a stable risk period. Then it drops again after 55, and again after 65.
Another survey from Canstar puts the numbers slightly higher — $2,706 for women under 25 and $3,020 for men under 25 — but the shape of the curve is the same. The difference between the two surveys probably comes down to sample size, location mix, and whether the policies included extras like roadside assistance or rental car cover.
What I tend to notice is that younger drivers often don’t realise how much they can save by adjusting their excess or choosing a car that’s cheaper to insure. A higher voluntary excess can cut your premium significantly, but only if you have the cash to cover it if you need to claim.
Where the numbers trip people up
Most people know age affects their premium. What they don’t expect is how much other factors can override it — or how quickly the rules change between insurers.
The loyalty penalty hits older drivers hardest
Renewal prices rose about 8% in the last financial year, while new policy prices only went up 4.4%. That gap is the loyalty penalty. Insurers like Bingle raised renewal prices by 25% between January 2025 and January 2026, and Commonwealth Bank by 19%. If you’re over 50 and haven’t switched insurers in a few years, you could be paying hundreds more than a new customer for the same cover. The fix is straightforward: get a quote from at least two other insurers before your renewal date. Most allow you to switch online in under 15 minutes.
Younger drivers are delaying maintenance — and that can backfire
79% of Gen Z and 76% of Millennials delayed at least one maintenance or cleaning task in 2026, compared to 37% of Boomers. Cost was the reason for 60% of those delays. But skipping a service or ignoring a warning light can lead to a breakdown or accident, which then shows up on your driving record and pushes your premium up further. It’s a cycle that’s hard to break. If you’re in this group, prioritise safety-related maintenance — brakes, tyres, lights — over cosmetic work.
Gender differences aren’t what most people assume
On average, men pay about $79 more per year than women at age 34. But some insurers charge women more — up to $20 extra — while others charge men up to $191 more. The variation is huge. If you’re a woman in her twenties, don’t assume you’ll get a better rate everywhere. The only way to know is to compare quotes across multiple insurers. A comparison website can show you the spread in minutes.
Location can override age entirely
Victorian drivers saw the steepest price hikes in 2025 at 8.29%. But within Victoria, a young driver in a high-risk postcode might pay more than an older driver in a low-risk area. Insurers look at crime rates, weather risk, and even how many claims have been made in your suburb. If you’ve moved recently, update your address with your insurer — living in a safer area could lower your premium regardless of your age.
What actually drives your premium — and what you can do about it
Age is a big piece of the puzzle, but it’s not the only one. Understanding how insurers build your premium helps you see where you have room to move.
Choosing a car that’s cheaper to insure
The vehicle you drive matters almost as much as your age. A Toyota Corolla for a 35-year-old in Sydney costs about $1,027 for a male driver and $1,011 for a female driver. A Toyota Hilux for the same person costs $1,119 for a male and $1,201 for a female. The difference between models can be $100–$200 per year. If you’re under 25 and shopping for a car, check insurance quotes for a few different models before you buy. A car with a lower repair cost, better safety rating, and less theft risk will save you money every year you own it.
How your driving habits change the calculation
Daily driving dipped from 48% to 46% of Australians in 2026, but Gen Z and Millennials are actually driving more than they did the year before. Insurers ask about annual kilometres and where you park overnight. If you work from home or use public transport most days, you might qualify for a low-kilometre discount. Some insurers now offer usage-based policies that track your driving via a smartphone app. If you’re a safe driver, this can cut your premium significantly — but it also means the insurer knows exactly how you drive.
What happens when you miss a payment or let cover lapse
A gap in coverage is a red flag for insurers. Even a few days without insurance can push your next premium up, because you’re seen as higher risk. If you’re struggling with the cost, don’t let the policy lapse. Call your insurer and ask about adjusting your excess, removing optional extras like rental car cover, or switching to a third-party policy temporarily. Most insurers would rather keep you as a customer at a lower rate than lose you entirely.
Upcoming changes that could affect your premium
Insurance premiums rose roughly 6–8% across Australia in 2025, and the trend isn’t slowing. The insurance-specific inflation rate sits at 2.5%, but some insurers are raising prices much faster — Bingle went up 25% in a single year. If you’re in a state like Victoria or Tasmania, where increases have been steepest, it’s worth reviewing your policy every six months rather than waiting for the renewal notice. A quick comparison could save you $200–$300 a year.
Frequently asked questions about age and car insurance
Does my premium drop automatically when I turn 25? ▾
Can I be charged more because of my postcode even if I’m over 50? ▾
Is it cheaper to insure a car under my parents’ policy? ▾
Do insurers check my age when I renew? ▾
Will a speeding ticket affect my premium more if I’m under 25? ▾
Does the type of cover I choose change with age? ▾
Age is a factor, but it’s not the final word
The gap between the youngest and oldest drivers is real — roughly $800 to $1,700 per year depending on which survey you look at. But that gap narrows significantly when you factor in the car you drive, where you live, how often you drive, and whether you shop around at renewal. The single most effective move for any driver, at any age, is to compare quotes from at least three insurers before renewing. A 15-minute comparison can save you more than an hour of work at minimum wage.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read Australian car insurance scores: how tips affect premiums.
Sources and Further Reading
Sustainable driving: car insurance lower premiums for eco-friendly cars in AU — How choosing a greener vehicle can reduce your insurance costs.
Australia’s most and least expensive cars to insure — Which models cost the most and least to cover, and why.
Youi (2026). Youi’s 2026 Australian Car Care and Costs Report. 🔗
Canstar (2025). What Does Car Insurance Cost? 🔗
Compare the Market (2025). Average Cost of Car Insurance. 🔗
Choice (2026). Car Insurers With the Biggest Price Hikes. 🔗
