Australia has witnessed a significant increase in car insurance premiums, which have risen by 16% over the past year, according to a comprehensive analysis by Mozo. The report examined 295,346 quotes from 33 different insurance providers, revealing that the average premium now stands at $1,717.
This increase aligns with the Australian Bureau of Statistics’ Consumer Price Index data, which reported a 16.4% rise in the March quarter, as noted in Mozo’s latest Car Insurance report.
Regionally, premiums vary considerably, with Victoria recording the highest average premium at $2,139, followed by New South Wales at $1,994. In contrast, Tasmania boasts the lowest average premium at $1,301.
Nearly half of Australians facing premium hikes experienced annual increases ranging from $100 to $300. Mozo’s research also highlighted that age and fuel type significantly influence insurance costs. For instance, drivers aged 20 and under are charged nearly three times the premiums of those aged 60 to 69, averaging $3,522 compared to $1,194. Additionally, insuring electric vehicles costs 73% more than insuring petrol cars.
Despite these changes, Mozo found that while 50% of Australians compare car insurance policies annually, 19% do so rarely, and 11% have never compared policies at all. Mozo cautions that neglecting to compare insurance options may result in overpaying for coverage or lacking adequate protection.
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