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What are the car insurance rates by age and gender?

Alex Ritchie avatar
Alex Ritchie
- 4 min read
What are the car insurance rates by age and gender?

How much you may be charged for car insurance is influenced by a range of factors, with your age and gender being key deciders for insurance providers. 

Insurers will assess your riskiness as a driver when you apply for a policy. This helps to inform the premium that you may be charged, as the insurer will need to determine your likelihood of getting into an accident or making a claim. 

Just as every driver is different, each insurance provider will have its own metrics and assessment criteria, so it’s challenging to say exactly what you may be charged just on those two factors alone.

If you’re considering taking out a car insurance policy and want to know how much you could be charged for your premium, you may want to familiarise yourself with the risk factors insurers assess to get a rough estimate beforehand. 

What risk factors influence your car insurance premium? 

Age

Your age does play a factor in determining the cost of your car insurance. It’s commonly known that drivers aged 25 and under are more likely to be charged higher premiums. Young drivers aged 21-24 pay on average around $1,750 for comprehensive insurance, according to CHOICE. Comparatively, adult drivers aged 45-65 pay $890 on average.

Average cost of comprehensive car insurance: 21-24-year-old drivers

State

Average premium

NSW

$2200

ACT

$2200

VIC 

$2390

QLD

$1450

SA

$1640

WA

$1570

Tas

$1490

NT

$1680

Source: CHOICE.com.au

This is because younger drivers are statistically more likely to be involved in road accidents. Young drivers in Australia are considered ‘high risk drivers’ by insurance companies. In fact, the NRMA has reported that young drivers represent a quarter of all Australian road deaths despite making up just 10-15% of the licensed driver population.

Gender

Generally speaking, women may get lower car insurance rates than men as they are statistically considered to be safer drivers. 

Data from the Department for Infrastructure and Transport (DIT) in South Australia shows that male drivers represent the majority of fatalities and serious injuries across the state. Between 2012 - 2016, men represented 69% of all fatalities and 65% of serious injuries. 

Interestingly, women were more likely (52%) to represent minor injuries. This trend is also reflected across Australia, according to DIT. 

Location

Where you live may impact the premium that the insurer could charge you, as well as your policy inclusions. For example, areas prone to natural disasters, high crime rates, or heavy traffic might have higher insurance rates due to the increased risk of claims. 

In areas that have extreme likelihoods of some disasters, such as bushfires, you may find that your insurer does not cover you for these events, or instead charge a significant premium for this inclusion. 

Parking

Where you park your vehicle can also play a role in determining your insurance premium. Cars that are locked up in secure garages are less likely to be exposed to theft or damages - whether from criminals or events like hail storms - compared to street parking your car. 

Driving history

Your driving history, including any past accidents (even if you were not at fault), past claims and demerit points, also plays a role in determining your car insurance premium. Generally speaking, a clean driving history means a lower premium.

What plays the biggest role in determining your car insurance premium?

Your personal information is used alongside actuarial data to assess your risk. If statistics show that one particular age group has more accidents, individuals in this group may be charged higher premiums. That being said, having a tangible history of adverse events will be taken more seriously by insurance providers than what statistics may indicate. 

Even if you ticked all the boxes to be considered a statistically lower-risk driver (female, aged over 25, parking securely in a safe neighbourhood), having a history of accidents or loss of licence could play a much larger role in determining the cost of your insurance.  

This is why it’s so important to carefully compare a range of car insurance quotes. Whether you’re looking at CTP insurance, third-party insurance or comprehensive car insurance, each car insurance company will use different metrics and calculations to determine what you may be charged. If you’re finding that your standard insurance provider is quoting you an eye-watering premium, don’t be afraid to shop around for a more competitive offer.

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Product database updated 21 May, 2024

This article was reviewed by Personal Finance Editor Peter Terlato before it was published as part of RateCity's Fact Check process.