The car insurance industry is quite a competitive one. Generally, there are two reasons for this. Firstly, everyone who wants to drive a car will need some form of car insurance. They don’t have a choice in the matter.
As a result, insurance companies don’t have to focus on convincing customers that they need insurance. Instead, it’s all about proving to them that their insurance product is better than their competitors!
Secondly, most people are always trying their very best to reduce their car insurance cost. Unfortunately, the average car buyer doesn’t always look at the finer details of their insurance coverage. Instead, they look at the final price that they have to pay.
What that means is that for most people, it all comes down to price.
So, in this article, we’re going to look at the average cost of car insurance in Australia according to which Australian state you might find yourself in and what age group you come from.
Why do your location and age group matter when it comes to car insurance cost?
Before we continue, let me clarify why this article will use your geographic location and age group to show you the average cost of car insurance in Australia.
You see, the average prices for car insurance in Australia vary depending on where you come from.
For instance, car insurance in New South Wales tends to be the highest, while Queensland tends to show lower car insurance quotations. By highlighting the highest and lowest averages, you should get a good idea of how much you’ll end up paying for auto insurance in the country.
Besides that, age and other demographics (like gender) also play a significant role in how much an insurance company will charge you. Generally, younger drivers with less experience are viewed as a higher risk category on the road, so they’ll have higher average insurance costs.
On the other hand, older drivers are seen to pose less risk and usually pay less.
How much is the average car insurance in Australia per month?
After crunching the numbers, it seems that the average monthly cost for car insurance in Australia comes down to about $80 a month.
But wait, there's a catch!
Most car owners pay their car insurance premiums on an annual basis. That means one big payment done only once a year.
Alternatively, you can ask your insurance agent if the company provides an option for monthly payments.
One word of advice: when it comes to something as crucial as auto insurance, it may be better to pay it in a lump sum once a year. Firstly, you won’t have to stress about making the payment every month. Plus, you have a lot of time to save up for next year’s payment, too.
What’s the average cost of car insurance in Australia?
So, let’s get down to it. Remember: these numbers are just indicators; they’re not the final price. Other factors affect your insurance cost, and you can always modify your insurance policy to fit into your budget.
Again, to make things easier, you’re going to see insurance costs from two different states as indicators of what you might pay on the high end versus the low end of that spectrum.
If You’re Under 25 Years Old
When you’re in the youngest age bracket, you’ll find that your insurance premiums are the highest. Don’t take it personally! Statistically, younger drivers are more prone to riskier driving behaviours, which insurance companies reflect in insurance costs.
You can expect to pay an average of $2,400 per year for car insurance in New South Wales. On the lower end, you might pay around $1,400 in Western Australia.
If You’re 25-29 Years Old
As you move up the age groups, your average insurance cost will start to go down. You might pay $1,800 in New South Wales on the high end in this age bracket and around $1,100 in Tasmania on the lower end.
If You’re 30-49 Years Old
If you’re in this age group, you can expect to pay anywhere from about $1,200 in New South Wales on the higher end or about $800 in any other state. As you can see, this age bracket is when the average car insurance cost starts to drop into the three-digit range.
In terms of age, drivers at this age range are lower-risk than the previous age groups. That’s because the typical 30-49 year old will already have many years of driving experience under their belt, and can therefore be reasonably expected to pose less risk on the road.
If You’re Above 50 Years Old
Lastly, you have those who are above 50 years of age. Even on the high end, you can expect to pay just below $1,000 for auto insurance in New South Wales, though several other states have an average of about $650 on the lower end.
As you can see, New South Wales typically comes out on the higher end for auto insurance prices no matter what age bracket you belong to.
What other factors affect car insurance cost?
This article wouldn’t be complete if we didn’t remind you that many other factors influence your insurance costs. Sure, age and location play significant roles, but so do your car’s market value and the safety features it has.
Plus, if you have a history of being a lousy driver despite your many years of driving experience, the insurance company will still raise the price of your insurance policy.
To find out more about car insurance and many other topics relevant to today's drivers, check out the blog section at Carpart.com.au!
By Ray Hasbollah