🚗 2025 Australia Car Insurance Comparison (Car Insurance Australia 2025)
Summary (Fact-checked):
In 2025, the average comprehensive car insurance premium in Australia is around $2,226, up about 5.8% year-on-year (roughly +$122). The sharp 16% jump reported for 2024 does not continue at the same pace in 2025. By switching to a top-rated policy, drivers can save up to $692, with many motorists typically saving around $200–$400 a year according to comparison reports.
🔹 TL;DR — Key Takeaways (Australia 2025)
- 2025 average comprehensive premium: about $2,226, up 5.8% year-on-year (around +$122).
- 2024 Mozo report: average premium $1,717 and +16% rise (a different data set and period from 2025 figures).
- ABS CPI (late 2024) suggests car insurance inflation is slowing, so 2025 increases are more moderate.
- Switching from a poor-value to a top-rated policy can save up to $692; more typical savings fall in the $200–$400 range.
- CTP (Compulsory Third Party) covers injuries to people, while damage to vehicles/property is covered separately by Comprehensive or Third Party Property (TPP) cover.
🚙 Cover Types Compared — Comprehensive vs TPP vs CTP
| Feature | Comprehensive | Third Party Property (TPP) | CTP (Green Slip) |
|---|---|---|---|
| Injury to people | Covered by CTP | Covered by CTP | Mandatory injury cover |
| Damage to your own car | Covered | Not covered | Not covered |
| Damage to others’ property | Covered | Covered | Not covered |
| Typical cost level | Higher | Lower | Set by state/territory |
| Best suited for | New cars, financed vehicles, higher-value cars | Older/low-value cars where you can accept the risk to your own vehicle | All registered vehicles (mandatory) |
👤 Which Policy Type Fits You?
- Comprehensive: Suits new or financed cars, and drivers who cannot afford to self-fund repairs or a total loss.
Best for: new cars, higher-value vehicles, financed vehicles, and people who want broader peace of mind. - Third Party Property (TPP): Suits older or low-value cars where you’re willing to take the risk on your own vehicle damage.
Best for: budget-conscious drivers who mainly want to protect against damage they cause to others’ cars or property. - CTP (Green Slip): Mandatory for all registered vehicles; covers injury to people only — not cars or property.
Best for: everyone (you have no choice) but you still need Comprehensive or TPP if you want damage cover.
💡 Practical Savings Guide (Australia 2025)
- Compare at least 3 quotes about 2–4 weeks before renewal. Keep driver details, parking location and annual kilometres consistent when comparing.
- Consider a higher excess to lower your premium if you have enough cash buffer to handle a larger excess at claim time.
- Highlight lower-risk factors: locked garage parking, lower annual kilometres, security devices and safe postcode can all help.
- Trim optional extras: remove windscreen, rental car and other add-ons if you don’t truly need them.
- Use discounts: online sign-up discounts, multi-policy bundling (Home + Car) and safe-driver / no-claim bonuses.
🗺️ Useful State-based References
- NSW SIRA – Green Slip price check
- QLD MAIC – Motor Accident Insurance
- VIC TAC – Transport Accident Commission
❓ FAQ — Real-world 2025 Questions
What is the average car insurance premium in Australia in 2025?
The average comprehensive premium in 2025 is about $2,226, up roughly 5.8% (about +$122) compared with the previous year, based on Canstar’s national analysis.
How much can I realistically save by switching?
Comparison sites report that many drivers save around $200–$400 a year by switching away from an overpriced policy. Canstar’s modelling shows that moving from poorer-value to top-rated cover can save up to around $692 in some cases.
What is the difference between CTP and Comprehensive?
CTP (Green Slip) is compulsory and covers injuries to people (e.g. other road users, passengers) but does not cover damage to vehicles or property. Comprehensive is optional and covers your own car, others’ cars and property (subject to the policy wording) in events like collisions, theft, fire and weather events.
Is it cheaper to pay monthly or annually?
Paying annually is often cheaper overall because some insurers add instalment fees or loading for monthly payments. However, monthly payments may be easier for cash flow. Always compare total annual cost, not just the monthly instalment.
Is buying online usually cheaper?
Many insurers offer online-only discounts or “new online customer” bonuses, so digital sign-up can shave money off the premium. Just make sure you are comparing the same cover level, excess and extras, and look at the overall value rather than price alone.
📚 Sources / References
- Canstar (6 Jun 2025): average comprehensive premium $2,226, +5.8% YoY, and potential savings up to $692 by switching — report
- CarExpert (9 Jun 2025): summary of Canstar car insurance premium trends — article
- Mozo Car Insurance Report 2024: average premium $1,717, +16% year-on-year (different survey period to 2025 Canstar data) — report
- ABS CPI (Dec quarter 2024): inflation and insurance category trends — statistics
- Finder Research 2025: typical cost ranges and cheap car insurance tips — guide, and real-world savings stories (e.g. $850 saving) — case study
- Money.com.au: list of discounts and common ways to save hundreds on premiums — discount overview
Disclaimer:
This article is for general information only and does not constitute financial advice. Actual premiums, coverage and savings depend on your
personal circumstances, vehicle, location and insurer. Always check current product disclosure statements, government resources and (where
appropriate) seek advice from a licensed insurance or financial professional before making decisions.