The average cost of car insurance in Australia has risen to $585.27 per policy, reflecting a 14% increase over the past year, according to data from the Australian Prudential Regulation Authority (APRA). This figure covers 18.13 million active policies, with total gross written premiums reaching $10.58 billion (A$16.8 billion) for the 12 months leading up to September 2024.
However, other sources suggest that premiums are significantly higher in certain areas. The Australian Automobile Association reports that the average cost of car insurance in major capital cities stood at $1,723.64 (A$2,735.85) as of the second quarter of last year. Sydney recorded the highest average premium at $2,325.63 (A$3,691.48), while Hobart had the lowest at $1,356.01 (A$2,152.28).
The sharp increase in insurance prices aligns with findings from the Consumer Price Index, which showed a 14% rise in the category over the year to September 2024.
In terms of claims, Australia saw a total of $7.31 billion (A$11.6 billion) in claims during the same period. Of the average premium of $585.27 (A$929), approximately $402.14 (A$638) was allocated to cover these claims, representing 69% of the average cost.
Between August 2023 and August 2024, over 150,000 car insurance claims were made, according to the Insurance Manufacturers of Australia. The majority of claims were for collisions (104,857), followed by glass damage (27,804), other damage (21,001), theft (3,325), and wild weather damage (2,371). A surge in weather-related claims was reported in January and February 2024 due to extreme summer conditions, including hailstorms.
(Note: $1.00 USD = A$1.60)
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