Sydney drivers’ comprehensive car insurance double the price in Perth
Friday 02 March 2018
Drivers in Perth are paying less than half the amount for comprehensive car insurance than those in Sydney, where transport costs, including insurance prices, are highest, according to the latest Transport Affordability Index from the Australian Automobile Association.
The report, released in February, compared the cost of transport in different cities around Australia and found the average metropolitan household spends $17,606 on transport costs per year - which is 14.2% of the average household income.
AAA Chief Executive Michael Bradley said that the report revealed annual transport costs for city dwelling families had increased by $121 since the previous quarter.
“Price movements in electricity receive a great deal of attention but transport actually absorbs a much larger share of household income,’’ he said.
“Unlike utility bills, Australian families do not receive all-encompassing transport bills every three months. The index highlights subtle movements in transport costs, which are otherwise easy to overlook.”
Despite the fact that overall Sydney transport costs decreased by $58 over the quarter, which the report attributed to “a significant cost reduction in registration and CTP following a reform of the Green Slips scheme,” comprehensive car insurance in Sydney is still double the price drivers in Perth are paying.
Weekly cost of comprehensive car insurance: Perth vs Sydney
The report looks at the transport costs for a hypothetical city household with two cars, driven a total of 25,000 km per year. When it comes to insuring these cars, it found that, “The Perth family saves over $930 per year when compared to the same family in Sydney for insuring both cars.”
Mozo’s previous research into car insurance also revealed that location was often one of the big factors contributing to differences in comprehensive car insurance costs, with Tasmanians shelling out an average $811 per year, while Victorians coughed up $1,345.
The good news is the research also found that the difference between the cheapest policy and the most expensive in each state could be as much as $1,875, leaving plenty of room for Aussie drivers to search out a policy that suits their needs and budget best.
“There’s a huge difference between the price of policies in most states, and what this means is that if you aren’t careful about which policy you pick, there’s a good chance you could be either paying too much, or not getting the quality of cover you really need,” said Mozo Director Kirsty Lamont.
If you’re looking for a better value car insurance policy, make sure you check out our car insurance comparison page.