How to Manage Car Insurance Cost in Australia Explained

• Car Insurance,
• Sep 18, 2019

 

 

Although lower than in previous years, the total road fatalities in Australia as shown by 2018’s statistics is 1,137. This is greater than 2015 to 2017’s statistics but the number before that was significantly higher. With this as a fatality rate, it feels safer to stay indoors and avoid the risk of car crashes as much as possible but the responsibilities and duties force us to go out.

 

If we knew that driving on the road would result in our death, we would all stop driving. That seems like a logical and solid solution to prevent car crashes; to remove the source of the problem itself. However, it is an impossible thing to do so since the cars allow us to travel long distances in shorter time intervals, so they are a necessity of our lives.

 

What we can do, however, to save ourselves while keeping the costs of it at a minimum is get car insurance.

 

What is car insurance?

For those who do not know about car insurance or for those who want to learn more about it, car insurance is the insurance that provides financial support in case of an injury in a car collision or an event related to car accidents (Wikipedia, 2019). Car insurance helps cover the costs of physical harm and in some cases, even covers the damages to the vehicle itself. Apart from that, some types of car insurance also allow you to pay for the cost of damage to the other party (for example, in case of comprehensive car insurance).

 

There are a lot of types of car insurance out there formed in different countries, but in Australia, the most common and relevant types of car insurances are:

 

 1- Compulsory Third-Party Insurance: This is the type of car insurance that gets you out of trouble and helps you pay for the person that was injured/killed in the collision as a direct result of your car as compensation. It does not, however, cover any cost to their property that was damaged in the collision or any of yours for that matter. This is one of the most basic and cheapest car insurance out there.

 

 2- Third-Party Property: A sort of add-on to other insurances, Third-Party Property covers the costs of legal issues and/or damages caused to the victim’s property. Again, it covers only the costs of property, not of the physical injuries. It also does not cover the costs of the damage to your own property, only the victim.

 

 3- Third-Party, Fire, and Theft: In addition to the features offered by the Third-Party Property car insurance, Third Party, Fire, and Theft also cover the costs of your vehicle if it catches fire or is stolen. It again does not cover any costs of the damage to your car by collision.

 

 4- Comprehensive Car Insurance: This is the type of insurance that covers everything from damages to your car and yourself in a collision, to the third party and their property, and also covers the fire and theft aspect of the Third Party, Fire, and Theft insurance. This is basically the complete insurance package.

 

How much does car insurance cost in Australia?

Car Insurance costs in Australia varies by a lot of factors. These can be, but may not necessarily include:

 

 1- State

 2- Type of vehicle

 3- Age of the owner

 4- Gender

The average cost of car insurance in Australia is 750-800$ per year with a series of factors incrementing or decrementing the value.

 

Car insurance cost depending on states:

Victoria is the state with the highest amount of car insurance tax in Australia of ~$1020 per year while Western Australia is the one with the lowest of ~$714.

 

Following is a list of state-wise car insurance costs in Australia as of 2019:

 

 1- New South Wales: In NSW, on average for a young-middle age driver, the cost of car insurance is anywhere from $960 per year, making it an average of $79 per month. The rate also varies between new and used vehicles and NSW is the only state with an insurance cost of a used vehicle greater than that of a new vehicle.

 

 2- Victoria: Victoria, the highest-priced state in terms of car insurance costs, has an average insurance cost of $1020 per year, marking $85 per month for a vehicle. The difference between a used and new vehicle is deniably low.

 

 3- Tasmania: Tasmania has an average car insurance cost of $721 and $60 per month. There is a considerable difference between the new and used vehicle prices, however, it is not that much but also cannot be ignored.

 

 4- Western Australia: The cheapest state if compared by the terms of car insurance costs, Western Australia has an average cost of car insurance held to about $714 per year and $59 per month with a low difference between used and new car costs.

 

 5- Queensland: $730 per year and $61 a year is the average car insurance cost in Queensland.

 

 6- South Australia: South Australia has, on average, a car insurance rate of $764 per year and $64 per month. There is a significant difference between a new and used car, so be sure to get a used car instead of a new one to reduce your insurance prices.

 

Conclusion:

In a nutshell, the Australian car insurance cost is around 770$ per year with factors like different states, different age groups, genders, types of the vehicle, and others affecting it significantly. Now that you know about car insurance costs in Australia, maybe you should start considering to buy a vehicle.

 

No matter which option you go with, you should never forget to perform the necessary background checks for the car you are going to buy, just to be on the safe side. For this, there is no better option than QuickREVs check to do it for you!