What is comprehensive insurance?

Comprehensive insurance is optional cover for your vehicle if you’re involved in a road accident. Don’t confuse this with compulsory third party (CTP) insurance. Your CTP or green slip is mandatory and designed to cover personal injury or death. Find out how your comprehensive insurance is priced.

What’s the difference between CTP insurance and comprehensive insurance?

CTP insurance is required by law and covers personal injury to others if you are involved in a road accident.

In contrast, comprehensive insurance is optional and covers damage to your own vehicle and property of others, as well as theft and fire.

Which factors affect the price of my comprehensive insurance?

What insurers consider in their prices

Does where I live affect my price?

Yes, your location really makes a difference to your comprehensive insurance price. In fact, premiums differ across Australia to take into account driving conditions, weather damage, accident and theft rates, and even accident rates involving animals.

For example, average premiums are highest in Victoria ($2,940) and lowest in Tasmania ($1,785).

Average annual premiums by state and territory

How does my age affect prices?

Your age is important. Insurers often increase premiums and excesses for drivers under 25 or those lacking experience. Their higher accident rates make them a greater risk for insurers.

Drivers under 25 paid an average of $2,863 for comprehensive insurance in June 2025, compared to $1,607 for a 30-year-old and $1,260 for a 60-year-old.

Young male drivers under 25 pay the highest average annual premiums, over $3,000. Drivers over 50 pay the least.

Average cost of comprehensive insurance by age group

Does my gender affect comprehensive insurance prices?

Yes. Women usually pay less for comprehensive insurance because of their safer driving behaviour and fewer accidents compared to men. Men consistently make up the biggest share of serious injuries and road deaths in NSW.

Some insurers, such as 1st for Women Insurance and Stella Car Insurance, offer women-specific coverage that includes higher protection for personal items and domestic incidents.

Does my vehicle type and its age affect prices?

Yes, your vehicle type and its age affect insurance premiums.

SUVs are usually more expensive to insure than passenger vehicles because they have a higher market value, it costs more to repair them, and larger ones can cause more damage to other vehicles.

Newer cars are more expensive to insure because of higher replacement costs. Cars under 3 years old cost 2.5 to 3 times more for comprehensive than third party property insurance. This is because third party property insurance doesn’t cover your vehicle.

Drivers of older cars, which have depreciated in value, often choose third party property insurance instead.

Does the colour of my vehicle matter?

Yes, insurers may charge more for darker colours. Why? They are harder to see in low light or bad weather and are more likely to be stolen.

A study of 7 comprehensive insurers found 4 of them adjusted premiums based on vehicle colour.

• White vehicles cost $1,336.78 per year.
• Black vehicles cost $1,414, 6% more per year than white vehicles.
• A black Toyota Corolla cost 7% more than the white Corolla.

Even so, safety features are more important than colour for reducing your risk of accidents.

What other features affect the price of my comprehensive insurance?

Business or personal use – It costs more to have comprehensive insurance cover certain business-related activities as well as personal use.

Garaging and chance of theft – Sports cars, luxury vehicles, and models that are popular with thieves attract higher prices because of higher replacement costs and more claims.

Your driving record – You will definitely pay more if you have traffic offences and demerit points on your licence or if you have ever lost your licence.

Your claims history – You pay more if you have made a previous claim on your insurance and it was your fault.

I want to know more about CTP insurance.