Skip to main content
Coles Insurance Logo

Car Insurance Prices Explained

There’s no doubt that insurance can sometimes seem a little complicated.

To help you understand more about how the price of your car insurance is set, and to provide you with options on how you may be able to save, we’ve created this simple guide.

The things that affect everyone

There are some factors that impact the price of your car insurance regardless of who you are and what car you drive.

Weather events

The frequency and nature of weather events impact the amount and severity of claims received. In the last few years we’ve seen an increase in major natural catastrophes as well as smaller wild weather events such as storms or hail. We often see an increase in the number of claims after these events, which can put pressure on prices to rise.

Parts, repair costs and used car prices

The cost of repairing cars has been increasing. Increased labour costs and parts, more expensive technology and the volume of imported cars on our roads can impact the price of insurance.

Due to recent disruptions in the automotive supply chain, the industry has seen a dramatic increase in used car prices over last 12 months. This, along with inflation, has had a flow-on effect on the cost of claims, repairs and parts to get cars back on the road (whether they’re yours or other cars involved in a claim).

Nature and volume of claims

If the number and variety of claims we receive changes, customer prices will also change. As car manufacturing and technology progresses, the nature of claims becomes more complex. This combined with an increase in population density in Australia impacts the general insurance industry.

How your circumstances affect your premium

In setting prices, we consider many factors that statistically influence the likelihood of having a claim.

  • Where you live
    The number of claims in your area, where you park, theft and accident rates, traffic levels and the type of road surfaces.
  • Previous claims experience
    If you haven’t claimed on your insurance in the past, it’s a pretty good indicator that you’re a safer driver.
  • The car you drive
    The value of your car, cost of repairing your car, how likely it is to be stolen, how fast it is, and its safety features such as having autonomous emergency breaking.
  • Who else will drive your car
    The age and experience of regular additional drivers on your policy can impact your price.
  • Age
    Younger people generally have less experience than older drivers and statistics support that they are more likely to be involved in an accident.
  • If your car is financed
    Cars under finance tend to have higher claims costs than those not under finance.
  • Driving experience
    Experience matters. Generally speaking, the longer you have held a valid car license, the more experience you have on our roads and the less likely you are to be involved in an accident.
  • How you use your car
    Cars used for business purposes tend to have more claims, than cars that are used for personal use.

Flexible cover options

Flexible cover options help you to tailor your policy to your needs. If adjusting your cover, please ensure that the revised cover suits your specific needs.

Drivers under 25

Covering drivers under 25 can cost more and should be excluded from your policy if not required. But don’t worry - you’ll still be covered when your car is driven by professionals in the course of their work, like parking attendants and mechanics who are under 25.

Increase your excess

If you’re able to pay more in the event of an accident, you can save money on your Comprehensive Car Insurance premium by increasing your excess.

Flexibility of optional extras

Our Comprehensive policy gives you the ability to tailor your premium to your needs. This allows you the option to add windscreen cover, car hire or roadside assistance, and enables you to exclude the extras you don’t require.

Pay annually, pay less

For more information about things that affect your premium please take a look at our Coles Car Insurance Premium, Excess and Discounts (PED) Guide.

Do you have any questions?


Our friendly contact centre insurance experts are ready to help


Call 1300 265 374

Terms and conditions

Product related

Standard underwriting criteria apply. Coles Supermarkets Australia Pty Ltd (Coles) is an authorised representative of the issuer, Insurance Australia Limited (ABN 11 000 016 722) (AFSL 227681), part of Insurance Australia Group (IAG). Any advice provided is of a general nature only and does not take into consideration your objectives, financial situation or needs. Before acting on any advice you should consider its appropriateness. You should read the Product Disclosure Statement and Target Market Determinations before deciding whether to acquire an insurance policy.

Policy limitations, exclusions and conditions apply. For full terms and conditions, see the Product Disclosure Statement.