Insurance prices increased by 14% as of September last year.
Australians paid an average of $585.27 (A$929) per policy for car insurance coverage, based on data from Australian Prudential Regulation Authority (APRA) covering 18.13 million active policies and $10.58b (A$16.8b) in gross written premiums from 12-months to September 2024.
However, other sources indicate significantly higher premiums, according to money.com.au.
The Australian Automobile Association reports that the average cost across capital cities is $1,723.64 (A$2,735.85) as of second quarter last year, with Sydney having the highest average at $2,325.63 (A$3,691.48) and Hobart the lowest at $1,356.01 (A$2,152.28).
Insurance prices have risen sharply, with the latest Consumer Price Index showing a 14% increase in the category over the year to September 2024.
Total claims in Australia during this period reached $7.31b (A$11.6b), meaning that 69% of the average $585.27 (A$929) premium, or about $402.14 (A$638), was used for claims.
Between August 2023 and August 2024, the Insurance Manufacturers of Australia recorded over 150,000 car insurance claims.
The most common were collisions (104,857 claims), followed by glass damage (27,804), other damage (21,001), theft (3,325), and wild weather (2,371). January and February 2024 saw a surge in weather-related claims due to extreme summer conditions, including hailstorms.
($1.00 = A$1.60)
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.