Whether you’re entering the world of car insurance with your first set of wheels, looking to upgrade your current level of cover, or shopping around insurance companies for more competitive options, we all want to lock down the best deal.
Even so, the amount we spend to insure our vehicles in Australia can vary widely. How much we pay for car insurance cover depends on a range of factors including the type of car we drive, where we park, our age, the level of coverage – is roadside assistance included, for example – and even our driving history.
What is the average cost of car insurance?
Canstar analysis found the average cost of comprehensive car insurance in Australia in 2024 ranged from $1,710 to more than $2,700. Cover was also shown to generally be more expensive for people aged under 25 in 2024, with female drivers in that age band paying $2,696 on average, and male drivers, $3,032. Meanwhile, the average cost for drivers over 50 was less than half that.1
Understanding the factors that go into calculating car insurance premiums can help you to avoid surprises when it comes time to get a quote.
“Different levels of cover differ significantly in price,” says Marni Jackson, Youi’s Head of Product – Vehicle. “Premiums can also differ between insurers depending on how they assess risk and the likelihood of claiming.”
So, how can you begin to understand what costs you might be in for? Below, we explore the factors that can influence what you might pay – including the different types of car insurance policies – to help you make more informed decisions about the policy that might best suit you.
Why does the average car insurance cost vary so much?
“No two policies are exactly the same,” says Jackson. “When making a comparison, consider the type of cover as well as the details of each policy and its provisions. Cover may differ between insurers, so it’s important to consider each policy’s Product Disclosure Statement and any exclusions and limitations that may apply”.
“When it comes to working out the cost of insurance, a lot of information is considered. For example, your car details, who’s driving and where you park. These details can play an important role in the insurer’s assessment of the risk and determining the premium".
Here’s a breakdown of the factors a car insurer might consider:
1. Your car
The make and model of your vehicle may be taken into consideration when calculating your car insurance premium. Generally speaking, luxury cars can cost more to insure than cheaper ones, based on the estimated costs of repair or replacement if a vehicle is damaged or deemed to be a total loss.
Similarly, electric cars tend to have a lot of built-in tech and Advanced Driver Assistance System safety features. Systems such as rain sensors, cameras, collision avoidance and driver monitoring are great for safety but can be pricey to repair or recalibrate.
Your car’s safety rating and any after-market accessories or modifications to the car may also affect your premiums. Some insurers might even take the colour of your car2 into consideration.
2. Who’s driving
“Your driving history, whether you’ve had previous accidents, and when you got your licence is also taken into account,” notes Jackson. “If you have demerit points, it does increase your premium. How much time you spend driving may also come into play.”
Bear in mind that the age of listed drivers may also influence your premium costs, with younger, inexperienced drivers generally incurring higher premiums.1
3. Where you live (and where you park)
Canstar research found that Victoria had the highest average cost of comprehensive car insurance, while Tasmania had the lowest.1
“If you live in an area with high crime rates or an increased risk of severe weather events such as floods, insurance companies could deem you a higher risk and adjust your premium accordingly – conversely, if you keep your car secure and under cover, as opposed to parked out on the street, this may reduce the cost of your cover,” says Jackson.
With all the above factors contributing to the cost of premiums levied by insurers, Youi’s car insurance by make and model pages could provide a useful insight into potential costs and illustrate how particular cars, even within the same brands, can cost more than others to insure.
The average annual Subaru WRX insurance cost, for example, is generally around 78% higher than for other Subaru models that Youi covers, as of July 2025 – while the average annual insurance premium for Hyundai Kona is about 15% lower than for all other Hyundai models insured with us.3
What are the different types of car insurance cover and how do they compare in price?
This is where it can be a good idea to weigh up the level of coverage you want versus how much you’re willing – and able – to pay. Below, we’ve broken down the main types of car insurance based on the levels of cover they generally provide, but Jackson says that even within those, there are choices you can make to potentially reduce or increase the cost of insuring your vehicle.
“Your premium can be different if you choose an Agreed Value or Market Value,” says Jackson.
These figures determine what you’ll get for your vehicle if it’s considered a total loss, with an Agreed Value generally leading to higher premiums.4
“If you choose a higher excess, the premium can be lower,” adds Jackson. “A higher car insurance excess might mean you’ll pay more if you make a claim, but it might help keep the cost of your car insurance premium down.”
For more information on Agreed Value and Market Value, see Youi’s Car Insurance PDS.
Comprehensive car insurance
Youi’s Comprehensive car insurance is exactly that – comprehensive. It can help cover your vehicle for a range of damage caused by insured events, including car accidents, theft, intentional damage, fire and some severe weather events. Where the insured event is a collision or accident, it can cover the damage caused by your car, as well as the damage to your car.5
Due to the range of situations comprehensive insurance can cover, it’ll typically cost more than other types of car insurance with less coverage.
When considering whether you need comprehensive car insurance, things to factor in might include how much it would cost to repair your car, whether your car is at high risk of weather damage, and how vulnerable it is to theft and intentional damage.
You can find more information on Youi’s Comprehensive car insurance here.
Third party fire & theft car insurance
Youi’s Third Party Fire & Theft car insurance can help cover you for damage to your vehicle caused by a fire or theft. It can also cover your legal liability for damage to other people’s property caused by your car.6
Generally speaking, third party fire & theft car insurance covers less risks and events than comprehensive car insurance but more than third party property only.
When weighing up whether you need third party fire & theft car insurance, things to consider might include whether you live or work in a neighbourhood with a high crime rate, or in an area with a high bushfire risk.
You can find more information on Youi’s Third Party Fire & Theft car insurance here.
Third party property only car insurance
If you’re wondering, “What is the cheapest car insurance you can get?”, the answer might be third party property only car insurance. This covers damage your car causes to another person’s car or property as the result of a motor accident. Typically speaking, it doesn’t cover damage to your own car caused by yourself or someone else, unless the other driver is uninsured and certain conditions are met.7
You can find more information on Youi’s Third Party Property Only car insurance here.
Compulsory third party (CTP) car insurance
Also known as a Green Slip in New South Wales,8 CTP insurance is the only type of mandatory car insurance in Australia.
This type of insurance can help cover you for compensation claims made against you in the event of a fatality or injury as a result of a motor accident caused by you. Depending on which state or territory you live in, it may be included in your vehicle registration costs or you might purchase it separately.
Youi offers CTP insurance in NSW and South Australia.
Is it cheaper to pay car insurance premiums monthly or annually?
Some insurers will allow you to choose between paying your premiums monthly or annually – though it may be the case that it works out cheaper overall to pay your premium once a year, rather than every month. With Youi, paying monthly will usually cost a bit extra, but some people choose this option as it works better for their finances.
What does roadside assistance cost?
Roadside assistance provides emergency assistance if you break down while driving your car. Some insurance companies offer it as an optional extra9 but with Youi, 24/7 Roadside Assist is included in all Comprehensive car insurance policies.10
Although there’s no quick answer to the question, “How much is car insurance?”, there are options you can choose from depending on your needs and budget. If you’d like to learn more about insurance that’s a bit more you-shaped, start a quote with Youi today.
1 Source: Canstar – How much does car insurance cost?, March 2025
2 Source: Canstar – Does the colour of your car impact your car insurance?, October 2024
3 Indicative cost of average annual insurance premium for Subaru WRX and Hyundai Kona is correct as of June, 2025
4 Source: Canstar – Car Insurance Market Value vs Agreed Value, April 2025
5 Available with Comprehensive policies. See the Car PDS for full details.
6 Available with Third Party Fire & Theft policies. See the Car PDS for full details.
7 Available with Third Party Property Only policies. See the Car PDS for full details.
8 Source: NSW Government – How to buy a Green Slip, April 2025
9 Source: CHOICE – How to get the best roadside assistance plan for you, May 2022
10 Youi Roadside Assist included with Comprehensive cover only. Exclusions, limits and additional fees may apply. Cover not available within first 24 hours of taking out, or upgrading to, Comprehensive cover. See the T&Cs and Car PDS for full details.
