Car insurance premiums in Australia have climbed an average of 4.7% over the past year, with drivers over 50 seeing the steepest jump at 10.26%. For someone in that age bracket paying around $1,450 annually, that’s an extra $149 a year — and the gap between the cheapest and most expensive policies can be several hundred dollars more.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
With 39 providers and 48 products on the market, picking the right car insurance in Australia isn’t about finding the cheapest quote — it’s about matching the policy to your car, your driving habits, and your risk profile. A policy that works for a 22-year-old in Sydney with a financed hatchback will look very different from one that suits a 55-year-old in Adelaide with a paid-off sedan. Here’s what you actually need to know.
What the Best Car Insurance Comparison Actually Reveals
When comparing policies, you’ll run into terms like agreed value and market value. These determine how much you’re paid if your car is written off.
What I tend to notice is that most people pick a policy based on the monthly price without checking whether the payout structure matches their car’s actual worth. That’s where the real cost difference shows up — not in the premium, but in what you get back after a crash.
Premium Rises, Age Brackets, and What You Actually Pay
Premiums aren’t rising evenly. The table below shows how increases vary by age group and state — and why your neighbour might be paying a very different rate than you.
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| Driver group | Average annual premium | Premium change (past year) |
|---|---|---|
| Under 25 | $2,800–$3,200 | ~$1–$3 increase |
| 30–49 | ~$1,800–$2,200 | +9.45% |
| Over 50 | ~$1,450 | +10.26% |
| Families | ~$1,600–$2,000 | +8.97% |
State-by-state, the picture is just as uneven. Tasmania saw the biggest jump at 7.13%, followed by the Northern Territory at 6.27% and Victoria at 6.19%. Queensland had the smallest increase at 2.70%. If you live in a state with higher rises, the savings from switching providers are larger.
For a 35-year-old driver in Victoria paying $2,000 a year, a 6.19% rise means an extra $124. Switching to a provider offering a 15% first-year discount could save $300 — more than double the increase. The maths works best when you treat car insurance as an annual shopping exercise, not a set-and-forget bill.
Where People Get Car Insurance Wrong
Picking market value on a car you’re still financing
If you owe $15,000 on a car loan and the insurer pays out $12,000 market value after a write-off, you’re $3,000 out of pocket — plus you still owe the loan. Agreed value policies let you set the payout at the amount you need to clear the finance. For anyone with a car loan, this is the difference between walking away clean and chasing a debt on a car you no longer have.
Ignoring the excess structure for young drivers
Most policies charge an additional excess for drivers under 25 — typically $400–$800 on top of the standard excess. ROLLiN’ Insurance is one of the few providers that doesn’t apply this extra charge. For a 22-year-old paying $3,000 a year, that could mean a $1,200 excess on a single claim versus $600 elsewhere. The premium difference between providers often matters less than the excess you’ll actually pay if you need to claim.
Assuming all comprehensive policies cover EVs the same way
Several Hollard-underwritten brands — including ahm, BUPA, Huddle Insurance, and Commonwealth Bank — don’t offer coverage for all electric and hybrid vehicles they assessed. If you drive an EV, you need to check not just whether the insurer covers electric cars, but whether your specific model is included. ROLLiN’ explicitly covers EV batteries, charging cables, wall boxes, and adapters. That level of detail isn’t standard.
Sticking with the same provider out of loyalty
Several insurers have exited the direct-to-consumer market recently — CGU Insurance in June 2025, Australia Post and Virgin Money in late 2025. Even for providers that stay, loyalty discounts rarely match the 15% new-customer discounts offered by Budget Direct and Qantas. A quick annual comparison using a tool like Finder or Canstar takes 10 minutes and can save $200–$400.
How to Choose the Right Policy for Your Situation
Match the cover type to your car’s value
Comprehensive insurance makes sense for cars worth more than $5,000–$8,000. Below that, third-party fire and theft or even basic third-party property can be cheaper and still cover the big risk — damaging someone else’s expensive car. The standard legal liability limit across most policies is $20 million, which covers damage to other vehicles and property. If your own car is worth $3,000, paying $1,500 a year for comprehensive cover means you’re effectively self-insuring the first $1,500 of any claim anyway.
Check the new-car replacement terms
AAMI offers “new for old” replacement with no kilometre limit for the first registered owner of a vehicle less than two years old. Bingle offers new car replacement for cars under three years old. ROLLiN’ covers new car replacement after total loss for cars with less than 15,000 km. If you drive a nearly new car, these terms can save you thousands — but only if you meet the specific conditions. A car with 16,000 km on the clock won’t qualify for ROLLiN’s replacement cover.
Look at the add-ons that actually matter
Roadside assistance is a common optional extra, but some providers include it in the base premium. AAMI offers a hire car for up to 21 days following theft — useful if you rely on your car for work. Bingle includes unlimited no-excess windscreen cover, which can save $100–$200 per replacement. The trick is to compare the total package, not just the headline price. A policy that’s $50 cheaper but lacks windscreen cover could cost you more in the long run.
What’s changing in the market
Several providers have left the direct-to-consumer space, which means fewer options and potentially higher prices for those who stay. At the same time, EV-specific coverage is becoming a differentiator — ROLLiN’ and a few others are leading, while many Hollard-underwritten brands are lagging. If you drive an electric or hybrid vehicle, the gap between providers will likely widen over the next 12–18 months as more insurers adjust their policies. Checking EV coverage at renewal isn’t optional anymore.
Frequently Asked Questions
Can I switch insurers mid-year if I find a cheaper policy? ▾
Does my no-claims bonus transfer between insurers? ▾
What happens if I have an accident and the at-fault driver is uninsured? ▾
Is it cheaper to insure a car with a black box or telematics device? ▾
Do I need comprehensive insurance for a leased or financed car? ▾
How do I check if my EV is covered by a specific insurer? ▾
The One Thing That Changes the Most for the Most People
The single biggest shift in the Australian car insurance market right now is the premium divergence by age. Over-50s are seeing 10.26% increases while under-25s are barely moving. If you’re over 50 and haven’t compared policies in the last 12 months, you’re almost certainly paying more than you need to. The same applies if you drive an EV — the coverage gap between providers is widening, and assuming all comprehensive policies are the same is an expensive mistake.
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 Shocking Car Insurance Facts Every Aussie Driver Needs to Know Before It’s Too Late.
Sources and Further Reading
Maximise Your Savings With These Car Insurance Tips in Australia — Practical strategies for reducing premiums without cutting cover.
Is Your No-Claims Bonus at Risk? Common Car Insurance Pitfalls in AU — How to protect your discount and avoid common policy traps.
Canstar (2026). Best car insurance Australia comparison. 🔗
Canstar (2026). 2026 Car Insurance Star Ratings and Awards. 🔗
Finder (2026). Best car insurance Australia July 2026. 🔗
Forbes Advisor Australia (2026). Best comprehensive car insurance providers. 🔗
