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Cost Of Comprehensive Car Insurance In Australia – Average car insurance premiums have increased by almost 20% in 2024 due to a number of factors. How to save money.
If you’ve received a notice to renew your car insurance that costs almost twice as much as it did last year, you’re not alone.
Cost Of Comprehensive Car Insurance In Australia
According to Australian Bureau of Statistics inflation data for March 2024, Australian insurance prices rose by 16.4% annually, the biggest annual increase in 23 years.
Average Cost Of Car Insurance 2024
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Across the insurance industry, rising “natural catastrophe and claims costs” have led to higher premiums across all product types – from home and contents insurance to auto insurance.
However, car insurance premiums are a major concern for consumers, with quotes doubling and even tripling in 12 months.
“Last year my comprehensive car insurance was $1,500 and this year I got a $2,250 renewal for the same car with the same terms,” one insurance customer shared on Facebook.
The Cost Of Car Insurance In Australia
Unfortunately, even if you have a clean driving record and your circumstances haven’t changed, you may still receive a more expensive car insurance renewal notice in 2024. Here’s why.
Car insurance prices are simply rising because cars are becoming more expensive to buy and repair.
A spokesman for the Insurance Council said: “Cars are now becoming more and more complex and advanced – a small defect that might have sent you to the sheet metal shop for a simple repair now requires repair and testing complex sensors for navigation and safety systems.” Immigration Australia Authority (ICA).
Inflation also increases repair costs, meaning insurance companies have to bear higher costs when customers make claims.
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An ICA spokesman added: “The cost of motor insurance claims increased by 43% between 2017 and 2023, twice the rate of inflation over the same period.”
In addition, we drive more than ever before, increasing the likelihood of accidents, while climate change also means we are at greater risk of natural disasters such as wildfires or floods.
“Motor vehicle premiums are currently rising as motor vehicle values continue to rise and become more expensive to replace, inflation and supply chain issues are increasing repair labor costs and auto parts prices, and capital costs are increasing for insurance companies remains extreme,” explained ICA -Speaker.
According to comparison website Canstar, the average cost of comprehensive insurance in Australia is $2,184 for women under 25 and $2,437 for men. For other age groups, the average cost was $1,733 for 25 to 29 year olds and $1,312 for 30 to 30 year olds. Age 49, age 50 and over $1,006.
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For electric car buyers, it should be noted that offers for fully comprehensive vehicle insurance can vary by 40.1% compared to a similar gasoline car.
“On average, you’ll pay about $690 less for annual comprehensive insurance for a gas car than for an electric car,” says Adrian Taylor, executive general insurance at Compare the Market and car insurance expert.
“The higher bids may be due to factors such as the complexity of the technical components of electric vehicles, the higher cost of replacement or repair and the current lack of specialists who can carry out these repairs. However, as more armed forces personnel and auto repair shops achieve these qualifications, we expect these costs to decrease.”
Don’t assume your loyalty will be reciprocated. If you receive a large renewal notice, shop around and get quotes from other insurance companies.
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If you find a cheaper deal for the same policy, you can present it to your current insurance company to see if they will lower your premiums, or switch insurance companies.
It is estimated that 2.6 million car insurance policies changed providers in the 12 months to October 2023, according to Roy Morgan.
Of course, a good driving record will keep your premiums low, but your car can stay in the family whenever possible.
It may seem counterintuitive, but some insurance companies offer lower premiums to people who don’t use their car regularly. Remember to let your insurance company know if this affects you.
Comprehensive Car Insurance Victoria Quotes
Steve Mickenbecker, group director of financial services at financial comparison website Canstar, previously said: “It is not unusual for insurers to charge higher premiums for renewal policies than for new customers.”
Use the same parameters as your current policy to see if your insurance company charges more and hopefully you won’t notice.
If you find them, be sure to call them and present your new offer to reduce the number of renewals.
If you have young people in your family, limit them to driving one car so you don’t have to pay to insure multiple family cars.
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If you can park your car somewhere safe instead of on the street, do it.
Companies like Parkhound connect you with people who have places to rent near you. You may find that the reduction in insurance costs offsets the cost of renting a safe place.
If ongoing charges rarely kill you or only in a short distance, it may be worth increasing your deductible to lower your premiums.
Of course, this means that if you do get into an accident, your upfront costs will be higher. Make sure you weigh the risks against the benefits of cheaper premiums.
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Mickenbecker previously said: “The premium for cars has not come down far enough in relation to the price of the car.”
“But don’t think about the fact that there are no fires and thefts by third parties. Even if you drive a $5,000 car, you might still come across a Ferrari!”
Some cars, such as electric cars, luxury cars, sports cars or large pick-up trucks, are more expensive to insure than others.
Similar to using premiums, choosing to buy insurance at market value rather than agreed value is an easy way to reduce ongoing costs. However, you may be at risk of a lower payment if your vehicle is written off.
Compare Comprehensive Car Insurance
“If you insure your car at market value, you will receive a reasonable replacement cost based on the market value of your car,” explained insurance company Budget Direct.
“On the other hand, if you insure your car at the agreed value, it means you will receive the amount your insurance company agreed to insure your car, no matter how much your car loses value during the contract period, which means your car is written off or stolen and irretrievable, you know exactly how much you will receive.
“Market value insurance can be cheaper in terms of the premium you pay, but the market value of your car if lost or damaged will usually be less than the price you originally paid for it” w buy.”
Alternatively, if you can’t afford a large upfront payment, consider switching to monthly payments to keep costs more manageable.
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If you are using a large provider, it may be worth switching to a smaller provider as they can often offer more competitive prices.
Finder’s 2024 Car Insurance Awards found Bingle to be Australia’s cheapest car insurance company. Comprehensive coverage costs an average of just $862 per year.
Coming in second in the low cost category are Rollin car insurance (which has proven to be particularly affordable for young adults) and Hume Bank (comprehensive insurance averages $959 per year).
Susannah Guthrie has been a journalist for over a decade, covering everything from world news to fashion, entertainment, health and the automotive industry. Suzanne has previously worked at The New Daily, Elle, Harper’s Bazaar, People Magazine and Cosmopolitan, among others, and now enjoys testing the family cars with the help of her husband and three-year-old son. Choose the excess that suits you within the given range. If you change your deductible, your base premium may adjust up or down.
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Our comprehensive car insurance offers protection for electric vehicles, including battery, charging cable, charger and stand.
Our fully comprehensive insurance customers rated their claims experience 4.3 out of 5 last year. Learn more about what our customers have to say.
Our comprehensive car insurance covers your car as well as any damage you cause to your car or other people’s property. Whether you drive an electric car or a traditional car, our car covers are designed to keep you safe on the road.
1 Driver bans apply if the driver does not have a driving licence, does not comply with driving license requirements, refuses a drug or alcohol test, is under the influence of drugs or exceeds the legal alcohol limit . For complete driver exclusions, usage and other coverage, see the “What’s Not Covered” section of the PDS Comprehensive Auto Insurance or PDS Third Party Property Damage Insurance. Drivers under the age of 25 will face additional overage charges.
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