State-level analysis reveals significant variation in premiums. Victoria reported the highest average annual cost at $2,940, marking an 8.3% year-on-year increase. Western Australia followed with a 7.8% jump to $2,032, while New South Wales and Queensland also posted increases of around 5.8% and 5.7%, respectively. Tasmanian motorists faced the lowest average premiums at $1,785, despite a modest 4.4% increase.
Driver age and gender continue to influence premium pricing. Those over 50 saw the largest proportional increase at 6.5%, although their average premium remains the lowest at $1,260. Young male drivers under 25 remain the highest-cost demographic, with premiums averaging $3,020. In comparison, drivers aged 30 to 49 paid $1,607 on average, while those aged 25 to 29 faced premiums of $2,176.
To manage these rising costs, motorists are encouraged to consider switching providers. On average, drivers could save approximately $692 annually by moving from a typical policy to one of the top-rated offerings, which average $1,534. The potential savings are greater for certain groups. Victorian drivers could reduce their premiums by up to $967, while young male drivers under 25 might save as much as $1,000. Drivers with family vehicles also stood to save over $1,000 by switching.
Industry experts advise motorists to view their annual renewal notice as an opportunity to compare policies and seek better value. Evaluating both cost and included benefits, such as usage-based discounts, optional higher excess, and safe driver rewards, can contribute to lower long-term costs.
Additionally, consumers are cautioned against misrepresenting information during the application process to reduce premiums. Providing false details, such as parking locations or annual kilometres travelled, can lead to claim rejections or policy cancellations, resulting in greater financial consequences in the future.
By staying informed and proactive, Australian motorists can navigate the challenges of rising insurance premiums and secure coverage that offers both value and protection.
