How much is car insurance?

How much does car insurance cost?

Average cost of car insurance by state

How much does it cost on average for your age?

How much does a third party property damage policy cost?

As part of the underwriting process, the insurer will assess a number of factors about you and every other driver listed on the policy. Areas they'll examine include:

• Your age. Due to the fact that young drivers are statistically more likely to be involved in accidents and engage in risky behaviour on the road, car insurance for under 25s is significantly more expensive than it is for older drivers.
• Your gender. Men, particularly young males, are also more likely to engage in risky behaviour and are, therefore, more likely to need to make a claim. However, your age (if you're an older driver) and marital status (if you're married rather than single) can help reduce the impact of your gender on car insurance prices.
• Your driving experience. The insurer will consider how much experience you have behind the wheel when calculating the risk of providing cover, which is why car insurance for P-platers and L-platers costs more.
• Your claims history. Have you previously been involved in an at-fault accident or lodged a car insurance claim? If so, this will force your premium up.
• Your driving record. If you have a lengthy list of speeding tickets and traffic infringements on your record, you can expect increased premiums.
• The number of drivers listed. Adding just 1 extra driver to your policy, even if they're the safest driver in the world, will increase your premiums. This is due to the fact that more drivers covered on a policy means a greater chance that you will need to make a claim.

In the eyes of car insurance providers, not all cars were created equal. Some vehicles are more expensive to insure than others for several reasons, and insurers will consider the following factors when calculating your premium:

• The value of your car. It doesn't take a rocket scientist to work out that a new $80,000 luxury vehicle will cost more to cover than a 10-year-old hatchback worth less than $10,000.
• How much it costs to repair. Does your car manufacturer have an extensive dealership and service network across Australia? If so, it will typically be easier and cheaper to get spare parts, which means cheaper repair costs and, in turn, lower premiums. Vintage vehicles can be extremely expensive to repair, which is why you may need to have a specialist vintage car insurance policy if you own this type of vehicle.
• How powerful it is. As a general rule, more cylinders and more horsepower mean higher premiums. If you drive a high-powered or performance vehicle – souped-up Mitsubishi Lancers and Subaru WRXs are 2 models that spring to mind – insurers associate it with risky driving behaviour. Unfortunately, this association will be reflected in your premiums.
• Your car's security system. Does your car have a sophisticated anti-theft system including an engine immobiliser? If so, this is seen as a powerful deterrent to thieves and can lower your premium.
• How safe your car is. The safer a car is for its drivers and passengers, the cheaper it is to insure. You can find the safest cars on the market by comparing official ANCAP safety ratings.
• How popular your car is with thieves. Some makes and models are much more likely to be stolen than others, simply because they're in style or are easier to resell. A highly desirable car will often attract higher premiums.

There are still plenty of other variables that can have a bearing on how much car insurance costs, including:

• Your state or territory. Insurers will consider the car theft rates in your state or territory when determining the likelihood of you making a claim. The proportion of the population that drives will also be taken into account – the more drivers on the road, the greater the risk of an accident.
• Your suburb. Does your postcode have a high rate of car theft? Is your suburb prone to severe storms or flooding? If you live in a high-risk area, expect to pay more for cover.
• Where you keep your car. A car kept locked in a secure garage when not in use is much less likely to be stolen or damaged than one that is left parked on the street.
• Your driving habits. Do you clock up several-hundred kilometres in busy traffic every week, or is your car only driven for short trips to the shops outside peak periods? The more you drive, especially in busy traffic, the more car insurance will cost.
• Business use. If you use your car for business purposes, expect to pay more for cover than if your car is for private use only.
• Any discounts that apply. Insurers offer discounts for everything from buying cover online to being a long-term customer, so keep an eye out for any discounts that may help you save on cover.