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Published 9 Sept 2026
Car insurance remains a major part of vehicle ownership in Australia, with 18.82 million domestic motor risks written in 2025 and comprehensive cover averaging 1,052 Australian dollars (AUD) in 2024. Rising repair bills, vehicle values, and theft-related costs have kept premiums under pressure across the market.
Car Insurance Coverage Types in Australia
Australia recorded about 18.82 million domestic motor risks written in 2025, showing the scale of the private motor insurance market alongside mandatory Compulsory Third Party (CTP) cover.
- CTP insurance is required for vehicle registration and covers injuries to people caused by a car.
- Third-party property damage cover can help pay for damage a driver causes to someone else’s vehicle or property.
- Third-party property damage with fire and theft adds protection for the policyholder’s car if it is stolen or damaged by fire.
- Comprehensive insurance is the most extensive common retail car insurance type listed by MoneySmart, covering the policyholder’s car, other people’s cars or property, theft, fire, and weather events, subject to policy exclusions.
- Domestic and commercial motor insurance together accounted for about 21.27 million risks written in 2025.
| Insurance Metric | 2025 Value (Million) |
|---|---|
| Domestic Motor | 18.82 M |
| Domestic and Commercial | 21.27 M |
Source · Note: A risk written is an insurance reporting count used to show market activity.
What was the value of motor insurance premiums written in Australia in 2025?
Domestic and commercial motor gross written premiums reached about AUD 23.45 billion in 2025, including AUD 18.39 billion from domestic motor insurance.
- Domestic motor insurance accounted for about 78% of the combined domestic and commercial motor premium base.
- Commercial motor insurance contributed about AUD 5.06 billion, or roughly 22% of combined motor gross written premiums.
- Domestic motor premiums were about 3.6 times larger than commercial motor premiums in 2025.
- Gross written premium is a market-size measure, while average premium data is better for understanding what drivers pay.
| Motor Insurance Class | Gross Written Premiums, 2025 (AUD Billion) |
|---|---|
| Domestic Motor | 18.39 |
| Commercial Motor | 5.06 |
| Domestic And Commercial Motor | 23.45 |
How much does comprehensive car insurance cost in Australia?
Comprehensive car insurance averaged AUD 1,052 per year in 2024, up from AUD 740 in 2019.
- The Insurance Council of Australia (ICA) reported a 42% increase in comprehensive motor insurance premiums between 2019 and 2024.
- The average comprehensive premium increased by AUD 312 between 2019 and 2024.
- Premiums stayed relatively flat during parts of the pandemic period, before rising with higher claims and repair costs.
- MoneySmart identifies comprehensive insurance as the cover type commonly used when drivers want protection for damage to their own car after a crash they cause.
Note: Premiums can vary by driver, vehicle, location, cover type, excess, and insurer discounts.
What are the main car insurance claims cost pressures?
Gross claims incurred across domestic and commercial motor insurance reached about AUD 19.6 billion in 2025, while several major claims cost drivers rose sharply between 2019 and 2024.
- The Insurance Council of Australia (ICA) reported that average motor claims costs rose 42% between 2019 and 2024.
- Repair costs rose 26% between 2022 and 2024, driven by wages, spare parts, and longer repair times.
- Repair bills made up roughly 60% of claim costs.
- New car prices were up as much as 39% between 2019 and 2024, while used car values were about 32% higher.
- Rental car costs increased 70% between 2019 and 2024, adding another cost pressure when repairs take longer.
| Claims Cost Driver | Increase (%) | Comparison Period |
|---|---|---|
| Average Claims Cost | 42 | 2019–2024 |
| Repair Costs | 26 | 2022–2024 |
| New Car Prices | 39 | 2019–2024 |
| Used Car Values | 32 | 2019–2024 |
| Rental Car Costs | 70 | 2019–2024 |
Source · Note: Claims incurred is the latest claims-cost total, while the table shows the cost pressures behind rising claim values.
More Statistics
How many motor theft insurance claims are recorded in Australia?
Motor theft insurance claims reached 29 thousand in Australia in 2025, up 2.5% from 2024, with incurred costs of 485 million Australian dollars (AUD).
- Theft-related insurance claims remained a national cost pressure for motor insurers in 2025.
- Victoria was the main driver of the national increase, while several other analysed states recorded lower motor theft claims.
- Western Australia, South Australia, and Queensland recorded lower motor theft claim volumes from 2024 to 2025.
- New South Wales claim volumes were relatively stable, with a 1.6% decline from 2024 to 2025.
Note: These figures refer to motor theft insurance claims, not all police-recorded vehicle theft incidents.
What is the outlook for car insurance in Australia?
Insurers’ motor insurance costs reached 94% of premiums in June 2024, up from 89% in June 2019.
- Comprehensive premiums and average motor claims costs both rose 42% between 2019 and 2024.
- Repair bills remain a key pressure point because they make up roughly 60% of claim costs.
- Higher vehicle prices can increase replacement and settlement costs when cars are written off.
- Theft remains a regional pressure point, especially in Victoria, where incurred motor theft costs rose 37% from 2024 to 2025.
References
- APRA: Motor Insurance Risks Written, Gross Written Premiums, and Claims Data (2025) · apra.gov.au
- ICA: Motor Insurance Premium, Claims Cost, Repair Cost, and Theft-Claims Trends (2019–2025) · insurancecouncil.com.au
- MoneySmart: Car Insurance Cover Types and Consumer Guidance · moneysmart.gov.au
