It costs 47% more for Australians to pay their car insurance premiums versus five years ago

34% experiencing increases ranging from AU$120 to AU$600 annually, the survey revealed.

Comprehensive car insurance in Australia is becoming increasingly expensive, with recent research by Mozo revealing a 47% increase in costs over the past five years. 

The average annual premium has climbed to AU$1,472 (AU$123 monthly). 

A staggering 80% of drivers reported higher insurance premiums in the last year, with 34% experiencing increases ranging from AU$120 to AU$600 annually.

However, Mozo's study uncovered substantial variations in insurance prices based on location, driver profiles, and vehicle characteristics. 

Young male drivers face the highest premiums, while older female drivers pay less. Even factors like car colour, age, and model can impact costs.

Demographic comparisons

Male drivers still pay more, with an average annual premium of AU$1,578, compared to AU$1,358 for female drivers. This discrepancy is partly attributed to statistical data showing that Australian men are more prone to risky driving behaviours and accidents, accounting for a significant portion of driver fatalities and injuries.

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Young drivers under 20 face significantly higher premiums, averaging AU$2,855 annually, compared to just AU$1,051 for drivers over 70. 

This age-based cost difference may also reflect driving experience and statistical risk, as older drivers often have a longer history without insurance claims.

Location-wise

Car insurance premiums vary by state and territory. Victoria (AU$1,817) and NSW (AU$1,717) have the highest annual premiums, while the Northern Territory (AU$1,685) attributes some of its higher rates to wet season flood risks. 

States with smaller populations, such as Tasmania (AU$1,183) and Western Australia (AU$1,264), tend to offer cheaper premiums. Queensland (AU$1,285), ACT (AU$1,310), and South Australia (AU$1,295) fall in the middle range.

Parking your vehicle in a secure location, like a carport or garage, can lower your insurance premium. On-street parking is the costliest option. 

The colour of your car also matters, with black (AU$1,564), silver (AU$1,486), and white (AU$1,460) cars being the most expensive to insure due to their popularity and solid resale values. Green-coloured cars are the cheapest to insure, with an average cost of AU$1,373 per year.