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New knowledge 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 price of $2104 in 2024 to $2226 in 2025.
Whereas that’s a a lot smaller improve than the 30.5 per cent common worth hike in 2024, insurance coverage premiums differ considerably relying on the state or territory through 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 is predicated 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 info exhibits that, on common, Victorians pay essentially the most for his or her complete automobile insurance coverage, at $2940 each year. They’ve additionally been hit with the largest annual improve, 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 | Improve |
| 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 terms of driver varieties, mature drivers skilled the largest worth hikes, with a mean improve of 6.5 per cent of their complete cowl over the previous yr.
However the highest automobile insurance coverage costs general proceed to be paid by younger male drivers below 25, who face common annual premiums exceeding $3000 as a result of their increased accident charges make them a larger danger for insurers.
| Common annual automobile insurance coverage premiums by driver | |||
| Driver | 2024 | 2025 | Improve |
| Underneath 25 feminine | $2550 | $2706 | +$156 (+6.1%) |
| Underneath 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 considered one of its top-rated insurance policies might doubtlessly save as much as $692 or 31.1 per cent in a single yr, whereas drivers who change to a five-star rated coverage in Victoria stand to avoid wasting greater than these in another 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%) |
When it comes to driver varieties, it’s households who stand to avoid wasting essentially the most (greater than $1000) by switching to a five-star coverage as rated by Canstar, adopted intently 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 |
| Underneath 25 feminine | $2706 | $1895 | -$811 (-30.0%) |
| Underneath 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 may not have been as steep as earlier years for a lot of drivers, however a 5.8 per cent hike isn’t precisely straightforward to swallow,” mentioned Canstar’s knowledge 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 worth hikes from their insurer for years might stand to avoid wasting much more.”
Primarily based on the 51 merchandise it examined from 43 insurers as a part of its 2025 Car Insurance Ratings 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 worth and coverage options. It additionally nominated one which provided the very best claims satisfaction and claims options nationwide.
Excellent Worth Award: Bingle, Price range Direct, ING, ROLLiN’ Insurance coverage, Virgin Cash
QLD, NSW, VIC, TAS, SA: ROLLiN’ Insurance coverage
Western Australia: Bingle
Northern Territory: Australia Put up
Most Happy Prospects Automobile Insurance coverage Claims: RAA
“When purchasing round for insurance coverage, worth is necessary, nonetheless, it’s not essentially about getting the bottom worth coverage on the town. You wish to be on the lookout for worth for cash, that’s, a good stage of canopy at a aggressive worth,” continued Ms Tindall.
“The analysis workforce at Canstar has in contrast an astonishing 67,000 quotes throughout 43 totally different suppliers, assessing each the price 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 affords reductions for rare and secure drivers. For instance, ROLLiN’ Insurance coverage makes use of a ‘Protected ‘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 individuals on an ultra-tight finances, the temptation could be to ditch their complete insurance coverage altogether, nonetheless, a fast examine might doubtlessly see you retain your insurance coverage, with the next stage of canopy at a lower cost – multi function easy change.”