Australian motorists are facing insurance bills at their highest in more than two decades. Comprehensive car insurance premiums have climbed 42 percent since 2019, reaching a peak of $1,052 on average in 2024. But the real shock came in early 2026: major insurers including Bingle, Commonwealth Bank, BOQ, Aldi, Suncorp, and RAA simultaneously pushed rates up by more than 10 percent for new policies.
The impact varies wildly across states and territories. In Tasmania, premiums have jumped 65 percent on average in the past 12 months. The ACT, Northern Territory, and South Australia follow, each copping significant increases. Queensland, by contrast, saw only 7 percent growth, revealing how much local factors drive the cost explosion.
Some drivers are hit far harder than others. Young drivers under 21 pay $3,610 annually for comprehensive cover, nearly triple the cost for drivers in their 60s. Electric vehicle owners pay roughly 40 percent more than petrol car owners: an average of $2,545 versus $1,702 per year.
The crisis is structural, not cyclical. Average repair costs have surged 42 percent since 2019, from $3,658 to $5,202. Vehicle parts cost more. Repair times stretch longer. A shortage of skilled workers has driven labour costs upward. Rental car costs for customers whose vehicles are being repaired have jumped 70 percent since 2019. The insurance industry also absorbed $560 million in fraud losses in 2023, a cost ultimately passed to premiums.
According to the Insurance Council of Australia, these pressures will not ease quickly. While parts availability is improving, labour shortages remain entrenched. Credit hire claims have quadrupled since 2019 and now cost three times more than standard claims. The industry has released a policy roadmap calling on government to streamline regulations and remove inefficiencies, but without structural reform, premiums will likely keep rising.
For Australian consumers already stretched by cost-of-living pressures, CHOICE data shows that shopping around is no longer optional. Consumers can save up to $692 annually by switching providers. For many households facing mortgage stress, fuel surges, and food price inflation, that difference is now material. The real solution, however, requires tackling the labour shortages and supply chain breakdowns that have made even basic repairs expensive and slow. Until that happens, insurance premiums will keep rising faster than wages.