Car insurance premiums rise 16% in Australia

The average car insurance premium across the country is now $1,717.

Car insurance premiums in Australia have increased by 16% over the past year, according to Mozo’s analysis of 295,346 quotes from 33 providers.

This rise is consistent with the Australian Bureau of Statistics' Consumer Price Index data, which showed a 16.4% increase in the March quarter, according to Mozo’s latest Car Insurance report. 

The average car insurance premium across the country is now $1,717, with Victoria seeing the highest average at $2,139, followed by New South Wales at $1,994. Tasmania has the lowest average premium at $1,301.

Nearly half of Australians who faced premium increases saw annual rises of between $100 to $300. 

Mozo’s research highlighted significant variations in premiums, influenced by factors like age and fuel type. Drivers aged 20 and under pay nearly triple the premiums of those aged 60-69, with an average of $3,522 compared to $1,194. Electric vehicles are also 73% more expensive to insure than petrol cars.

Whilst half of Australians compare car insurance policies annually, 19% rarely do so, and 11% have never compared at all. Mozo warns that failing to compare policies can lead to overpaying or inadequate coverage.