Car Insurance Calculator

Learn about the factors which determine your car insurance premium calculation and compare quotes and estimates online.

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, updated on February 15th, 2024       

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Car Insurance Banner

When it comes to choosing the right car insurance policy, it can be challenging to know where to start. However, it’s important to have an estimate of how much your car insurance premium will be based on your circumstances before you buy. Factors such as your age, driving experience, car type and location can all impact your premium, so it's essential to get an accurate idea of the cost.

How do I calculate the cost of car insurance?

The simplest and most effective way of calculating your car insurance cost is to get a quote, which you can do easily online. This will give you an estimate of what different insurers are willing to charge you for cover based on your profile as a driver and car owner. However, while each insurer will offer different prices and have different methods of estimating car insurance quotes, some of the main factors which can impact the cost of your policy include:

  • Age: generally, younger and less experienced drivers are considered riskier to insure and are therefore charged higher premiums than older drivers, such as those over 50.
  • Location: the area where you live can impact your car insurance costs. For example, if you live in an area with a high rate of car theft or accidents, your premiums may be higher. Additionally, these costs differ between states, meaning you may pay less in Tasmania than in New South Wales.
  • Car type: the make and model of your car can also impact your insurance premiums. More valuable or powerful cars may have higher premiums, as they can be more expensive to repair or replace.
  • Driving record: your driving history can also impact your premiums. For instance, if you have a history of accidents or traffic offences, you may be considered a higher risk and charged more for insurance.
  • Coverage level: the level of coverage you choose can also affect your premiums. For example, comprehensive car insurance will generally cost more than just third party property damage coverage.
  • Excess amount: The higher your excess, the lower your premiums may be, but you'll need to pay more out of pocket if you end up having to make a claim.
  • Car parking: where you park your car overnight can also affect your insurance premium. Cars parked in a secure garage are less likely to be stolen or damaged than those parked on the street, which can result in a lower premium.
  • Car usage: how you use your car can also affect the cost of your insurance. If you use your car for business purposes such as ridesharing or for long commutes, you may face a higher premium. Using your car only for personal reasons or short commutes may result in a lower premium.
  • Car insurance discounts: there are various discounts available for car insurance, such as no-claim bonus, multi-policy discount, sign-up discounts and more.
  • Optional extras: car insurance policies may come with optional extras such as roadside assistance, rental car coverage or windscreen damage. While these extras can be helpful, they can also increase the cost of your premium.

How can I get a car insurance quote online to calculate my premiums?

Getting a car insurance quote online is easy. You simply need to:

Complete an online form

You’ll have to share some information about yourself, as well as your vehicle and the cover you're looking for. This should only take a few minutes.

Compare policies side-by-side

After submitting the form, you’ll be able to access and compare online quotes from a range of insurers based on your profile.

Purchase your policy

Once you’ve completed your comparison, you can buy a policy online if it satisfies your requirements. This can kick in as soon as today once you’ve finalised the paperwork.

Types of car insurance you can choose from

Common questions about calculating car insurance costs

Does how often I pay my car insurance premium affect how it’s calculated?

Some insurers may offer discounts on your car insurance if you pay annually instead of monthly. This is because there are less administrative costs associated with a single payment compared to 12. However, you’ll obviously need to pay a lump sum to cover your car insurance premiums annually, so make sure you’re comfortable with doing so if you choose this option.

How do market and agreed value impact my car insurance calculation?

Market and agreed value can affect how much you'll be paid if your car is stolen or written off. Market value is the estimated amount your car is worth based on its age, condition, and kilometres, whereas agreed value is a fixed amount agreed between you and your insurer that your car is worth. Typically, an agreed value policy will be more expensive than a market value policy, as these are utilised to guarantee a higher payout in the event of a write-off or theft.

Will I pay less for my insurance if I don’t drive much?

Yes – if you don't drive much, you could pay less for your car insurance. Policy calculations are not only based on how you use your car, but how often you use it and the amount you travel in a given year. Additionally, some insurers offer pay-as-you-drive policies which allow you to pay based on the kilometres you drive, while others may offer low-kilometre discounts.

Can I claim my car insurance premiums on my tax return?

No – you can’t claim your car insurance premiums on your tax return, unless you’re using your car for work-related purposes. Therefore, if you’re using your car for private reasons or commuting to and from work, you won’t be able to claim a tax deduction. If you use your vehicle for both private and business use, it’s crucial to separate this usage for tax purposes. Consult with a tax professional if you’re unsure about what you can and can’t claim.

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Disclaimer:

Savvy (ABN 78 660 493 194, ACR 541 339) provides readers with a variety of car insurance policies to compare. Savvy earns a commission from our partnered insurers each time a customer buys a car insurance policy via our website. All purchases are conducted via our partners’ websites. The integrity of our comparison service is unaffected by our partnerships with those businesses and our effort remains to bring further brands that do not already use our comparison service onboard.

Savvy’s comparison service includes selected products from a panel of trusted insurers and does not compare all products in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy. We always recommend readers to consult the Product Disclosure Statement (PDS) of different policies before purchasing your car insurance.