The most and least expensive cars to insure in Australia.

By Sandra Zablotna - Wednesday 12 June 2024


Buying a new car is costly, especially with rising insurance premiums due to inflation, higher car prices, and increased repair costs. The Australian Bureau of Statistics reported a 16.4% annual rise in insurance prices, the highest in 23 years. Factors like car value, inflation, supply-chain issues, natural disasters, and individual circumstances such as the driver's age and history all influence insurance costs. According to the Insurance Council of Australia and experts, these combined elements are driving up insurance prices even for drivers with clean records.

Ford ranger

Below are the cars that are the most expensive to insure and the reasons why:

Luxury Cars - Owning a luxury car is all about making a statement of success, high status, quality, and professionalism.

  • Reason: High cost of parts and specialized labour, often imported.
  • Expert Insight: Higher vehicle value leads to higher premiums due to expensive repair/replacement costs.

Electric Cars - may have higher insurance costs, but they are a more affordable and environmentally friendly option in the long run.

  • Reason: Complex technology, fewer repair specialists, supply-chain limitations.
  • Cost Difference: Average 40.1% higher than petrol cars.

Large SUVs and Off-roaders - it is all about safety and peace of mind for drivers and passengers. Plus, they are perfect for outdoor adventures.

  • Reason: Large size/weight causing more damage in accidents, higher risk of vehicle damage off-roading.
  • Expert Insight: Higher potential damage increases premiums.

Dual-cab Utes - versatility, towing capacity, durability, off-road capability, strong resale value and suitability for various lifestyle!

  • Reason: High theft risk, often used by tradesmen with valuable equipment.
  • Expert Insight: Popularity and theft rates drive up premiums.

However, if you are looking for less expensive cars to insure, here is what you should look for:

Common Sedans and Hatchbacks

  • Reason: Readily available spare parts, widespread mechanic expertise.
  • Expert Insight: Popular models with competitively priced parts lower premiums.
  • Vehicle Types: Family sedans, station wagons, and minivans are statistically less likely to be involved in crashes, making them cheaper to insure.
  • Consideration: Insurance costs can rise if a model has a history of frequent claims.