Car driving near pedestrian crossing in city street

Why Does Car Insurance Vary by Make and Model?

When you're thinking about buying a car, it’s often the make and model that you settle on first. But did you know that the make and model of your car can affect the price of your insurance? Here’s why:

Car make

A car’s make, or brand, can significantly affect the price you’ll pay to insure it, particularly if you choose a luxury or high-end vehicle. Generally, the more you pay for a car, the more it can cost to insure.

The difference in price between comprehensively insuring a luxury European vehicle and a less expensive car make could be in the order of hundreds, if not thousands, of dollars.

Remember, car insurance premiums are designed to reflect the risk presented by you and your vehicle as well as the cost of repairing or replacing your vehicle in the event it is damaged or written off.

You’ll also find that factors such as the likelihood of your vehicle being targeted by thieves or even the chance of your car’s make being involved in an accident can impact your insurance premium.

Car model

As with your car's make, the specific model you buy can also affect your insurance premium. There are various reasons for this, including the price difference between the different vehicle body styles and even the trim level you select.

Car manufacturers make vehicles in a variety of different body styles and shapes as options for buyers, from hatchbacks and station wagons to utes and SUVs.

Even within the same car make, manufacturers may produce models in a wide range of body styles, and the price difference between them can be substantial.

Manufacturers also often produce five or six trim options for each model. However, insurance companies usually only consider three different trim types:

  • Standard
  • Sport
  • Luxury

You can get an estimate of the price you can expect to pay to insure the different makes and models of Australia’s most popular passenger cars with our online Car Insurance Make and Model Comparison Tool.

Other considerations

There are, of course, many other things insurers may take into consideration besides the make and model of a car when determining the price of insurance. Some of which might surprise you. These may include:

  • Paying your premium month to month or in a single annual payment.
  • The distance you drive to work
  • Your employment status
  • Where and how you park your car at night
  • The use and distance of daily/yearly travel
  • Age you obtained your license
  • Type of driver’s license held
  • Your demerit history
  • Colour of your car
  • If your car has modifications
  • Length of insurance history
  • How your car is parked during the day
  • Your claim history
  • If you’re the registered owner of another vehicle

car parked infront of driveway

Of course, the type of insurance you need will also affect the price. The different categories of insurance include:

Some of these factors, you can control. If insurance costs are top priority for you, take your estimated rates into consideration when choosing your next vehicle. Other factors, such as whether you have access to a secure garage you can park in, may be outside of your control.

One final variable to consider is the insurance provider you purchase your cover through. As every provider uses different actuarial tables and algorithms to make pricing decisions, you may be surprised to find that changing your provider can influence how much you pay for the cover you need.

What to find out more about our car insurance options? Start a quote today.

The information provided in this article contains general advice only. It has been prepared without taking into account any person’s particular objectives, financial situations or needs.

Premiums and savings subject to rating, underwriting, and individual circumstances. Product issued by Youi Pty Ltd, consider our car insurance product disclosure statement at when deciding if this product is appropriate for you.