New information revealed by <a href="http://Canstar exhibits automobile insurance coverage premiums have elevated by 5.8 per cent or $122 this yr – up from a mean annual charge of $2104 in 2024 to $2226 in 2025.
Whereas that’s a a lot smaller enhance than the 30.5 per cent common value hike in 2024, insurance coverage premiums fluctuate considerably relying on the state or territory by which you reside, in addition to your age, intercourse and driving file, and naturally the kind of automobile you’re insuring.
Canstar’s 2025 Automobile Insurance coverage Star Scores and Awards relies on the evaluation of over 67,000 full complete coverage quotes for each new and used vehicles in a variety of eventualities, and with a state-specific goal excesses starting from $800 to $1000.
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The information exhibits that, on common, Victorians pay probably the most for his or her complete automobile insurance coverage, at $2940 each year. They’ve additionally been hit with the most important annual enhance, with premiums rising by a mean of $225 or 8.3 per cent year-on-year.
| Common annual automobile insurance coverage premiums by state | |||
| State | 2024 | 2025 | Enhance |
| New South Wales | $2430 | $2570 | +$140 (+5.8%) |
| Northern Territory | $2189 | $2283 | +$94 (+4.3%) |
| Queensland | $1901 | $2010 | +$109 (+5.7%) |
| South Australia | $1881 | $1970 | +$89 (+4.7%) |
| Tasmania | $1710 | $1785 | +$75 (+4.4%) |
| Victoria | $2715 | $2940 | +$225 (+8.3%) |
| Western Australia | $1885 | $2032 | +$147 (+7.8%) |
In the case of driver varieties, mature drivers skilled the most important value hikes, with a mean enhance of 6.5 per cent of their complete cowl over the previous yr.
However the highest automobile insurance coverage costs total proceed to be paid by younger male drivers underneath 25, who face common annual premiums exceeding $3000 as a result of their greater accident charges make them a higher danger for insurers.
| Common annual automobile insurance coverage premiums by driver | |||
| Driver | 2024 | 2025 | Enhance |
| Below 25 feminine | $2550 | $2706 | +$156 (+6.1%) |
| Below 25 male | $2858 | $3020 | +$162 (+5.7%) |
| 25 to 29 | $2056 | $2176 | +$120 (+5.8%) |
| 30 to 49 | $1529 | $1607 | +$78 (+5.1%) |
| 50+ | $1183 | $1260 | +$77 (+6.5%) |
Canstar says somebody paying a mean premium of $2226 who switches to one among its top-rated insurance policies might doubtlessly save as much as $692 or 31.1 per cent in a single yr, whereas drivers who swap to a five-star rated coverage in Victoria stand to save lots of greater than these in some other state – $967 or 32.9 per cent on common.
| Common annual automobile insurance coverage premiums in comparison with top-rated – by area | |||
| State | Common | Common of 5-Star Rated | Distinction |
| New South Wales | $2538 | $1683 | -$855 (-33.7%) |
| Northern Territory | $2283 | $1645 | -$638 (-27.9%) |
| Queensland | $2010 | $1429 | -$581 (-28.9%) |
| South Australia | $1970 | $1316 | -$654 (-33.2%) |
| Tasmania | $1785 | $1284 | -$501 (-28.1%) |
| Victoria | $2940 | $1973 | -$967 (-32.9%) |
| Western Australia | $2032 | $1402 | -$630 (-31.0%) |
By way of driver varieties, it’s households who stand to save lots of probably the most (greater than $1000) by switching to a five-star coverage as rated by Canstar, adopted carefully by younger male drivers.
| Common annual automobile insurance coverage premiums in comparison with top-rated – by driver | |||
| Profile | Common | Common of 5-Star Rated | Distinction |
| Below 25 feminine | $2706 | $1895 | -$811 (-30.0%) |
| Below 25 male | $3020 | $2020 | -$1000 (-33.1%) |
| 25 to 29 | $2176 | $1553 | -$623 (-28.6%) |
| 30 to 49 | $1607 | $1211 | -$396 (-24.6%) |
| 50+ | $1260 | $957 | -$303 (-24.0%) |
| Household | $2747 | $1731 | -$1016 (-37.0%) |
“This yr’s premium will increase won’t have been as steep as earlier years for a lot of drivers, however a 5.8 per cent hike isn’t precisely simple to swallow,” mentioned Canstar’s information insights director Sally Tindall.
“One of many largest errors drivers could make is viewing their annual renewal discover as a tick and flick train. As an alternative, your discover must be seen as a reminder to do a fast comparability.
“Our analysis exhibits drivers taking out a brand new coverage can doubtlessly save $692 by switching from a mean priced premium to a Canstar top-rated one. That’s a mean saving – those that have copped value hikes from their insurer for years might stand to save lots of much more.”
Based mostly on the 51 merchandise it examined from 43 insurers as a part of its 2025 Automobile Insurance coverage Scores and Awards, Canstar recognized six suppliers that provided excellent worth to Australian drivers each nationally and by state/territory, based mostly on a complete comparability of value and coverage options. It additionally nominated one which provided the very best claims satisfaction and claims options nationwide.
Excellent Worth Award: Bingle, Finances Direct, ING, ROLLiN’ Insurance coverage, Virgin Cash
QLD, NSW, VIC, TAS, SA: ROLLiN’ Insurance coverage
Western Australia: Bingle
Northern Territory: Australia Submit
Most Happy Prospects Automobile Insurance coverage Claims: RAA
“When purchasing round for insurance coverage, value is essential, nevertheless, it’s not essentially about getting the bottom value coverage on the town. You need to be on the lookout for worth for cash, that’s, a good degree of canopy at a aggressive value,” continued Ms Tindall.
“The analysis crew at Canstar has in contrast an astonishing 67,000 quotes throughout 43 completely different suppliers, assessing each the associated fee and what’s included for each to assist drivers determine good-value choices.
“There are additionally different methods to cut back your premium, like rising your extra, eradicating further drivers who now not use the automobile and sustaining a clear driving file.
“It’s additionally value checking in case your insurer gives reductions for rare and protected drivers. For instance, ROLLiN’ Insurance coverage makes use of a ‘Secure ‘n’ Save’ app that assesses issues like a driver’s acceleration and braking with a reduction of as much as 15 per cent on provide based mostly in your rating.
“For folks on an ultra-tight price range, the temptation is perhaps to ditch their complete insurance coverage altogether, nevertheless, a fast test might doubtlessly see you retain your insurance coverage, with a better degree of canopy at a lower cost – multi functional easy swap.”
