$1.6k: How much does it Cost to Insure a Car? Australia vs USA

April 4, 2023

$1.6K: How much does it Cost to Insure a Car in Australia Vs. USA 2023 Update?

Having car insurance is an essential component of owning a vehicle, one must not compromise it. It not only provides financial protection in case of accidents, but it is also a legal requirement in most states. However, finding the right car insurance policy can be a bit challenging. Especially with the multiple options available in both the United States and Australian markets. In this info guide, we aim to provide you with valuable insights into ‘How much does it Cost to Insure a Car‘; and the factors that influence it.

Average Cost of Car Insurance in Australia

According to the latest data released by the Australian Bureau of Statistics (ABS), the average annual premium for comprehensive car insurance in Australia was $1,100 in 2020. However, this figure varies significantly depending on several factors, including:

Your Age

Younger drivers typically pay higher premiums due to their lack of driving experience and increased risk of accidents. This is quite obvious!

Specifically, drivers aged 25 and under can expect to pay an average of AUD $1,600+ annually for comprehensive car insurance. While those over 25 pay an average of around A$1,000 to $1,300 if calculated cumulatively on yearly basis.

Here’s an updated and more comprehensive table with recent data on the average monthly and annual car insurance costs by age group:

Age group	Average monthly car insurance cost	Average annual car insurance cost
18-24 years old	$153.43	$1,841.15
25-34 years old	$123.61	$1,483.31
35-44 years old	$111.04	$1,332.52
45-54 years old	$107.09	$1,284.52
55-64 years old	$95.85	$1,150.23
65+ years old	$85.09	$1,021.05

Cost Of Car Insurance By Age

The above data shows that car insurance costs generally decrease as the driver gets older. With the lowest average monthly and annual costs for drivers over 65 years old. It is important to note, however, that car insurance rates are also influenced by a variety of other factors such as driving record, type of car, and location.

Location You Reside/Drive The Most

The area, where you reside, plays a crucial role in determining your car insurance premium. If you live in an area with a high rate of car theft, mischievousness, or accidents, your premium will be higher than if you lived in a low-risk area. And this sound quite unfortunate!

Your Car Type

The brand, model, and luxuriousness of your car can also affect your premium. Luxury and sports cars typically have higher insurance premiums due to their higher repair costs and increased risk of theft.

Your Driving History / Previous Driving Record

Your previous driving record, which means any past accidents, demerits, or traffic violations, can highly impact your car insurance premium. Drivers who have a record of accidents or traffic violations are deemed to be at a greater risk of being involved in future incidents and as a result, they are required to pay higher insurance premiums.

Average Cost of Car Insurance In The United States

The average cost of car insurance in the United States varies widely depending on a variety of factors. According to recent data, the national average for car insurance is around USD $1,500 per year. But this can range from as low as USD $600 to as high as $2,500 depending on the state, the driver’s age, and other factors.

Factors That Can Lower Your Car Insurance Premium

While car insurance premiums can be high, there are still some ways to lower your premium:

Increase your deductible

When you have a deductible on your insurance policy, you are required to pay a certain amount of money out of your own pocket before your insurance coverage begins to cover the remaining costs. By choosing to increase your deductible, you can reduce the amount you pay for your insurance premium each month.

Choose a higher excess

Just like increasing your deductible, choosing a higher excess (the amount you agree to pay towards a claim) can lower your premium.

You better Install security features

Installing security features such as alarms, immobilizers, and GPS trackers can lower your car insurance premium by reducing the risk of theft. Even Dash Cam can be perfect evidence to help you save when no one’s sure whose accidental fault it is.

Bundle up your policies

Many insurance companies offer attractive discounts when you bundle multiple policies, such as car, home, and other insurance.

Conclusion on How much is it to Insure a Car

Although car insurance is a mandatory expense for all car owners, it doesn’t necessarily have to be excessively expensive. By understanding the basic factors that influence your premium and taking steps to reduce your risk; you can save money on your car insurance. At AustralianStreet we are committed to helping you find the suitable vehicle insurance policy guide that meets your needs and budget.