WA motorists copped second largest car insurance premium hike but can save by shopping around: Canstar

WA motorists have copped the second largest increase in car insurance premiums in Australia over the past year with fees rising by staggering 7.8 per cent. But if West Aussies are prepared to shop around, they could slash more than 30 per cent off their annual policy. That’s according to new research by financial comparison site, Canstar. It analysed more than 67,000 insurance quotes from 43 providers as part of its 2025 Car Insurance Star Ratings and Awards and found the average cost of comprehensive car insurance had increased by $122 over the past 12 months nationwide. In WA, the figure was a little higher — at $147 or 7.8 per cent — with the average premium rising from $1885 in 2024 to $2032 in 2025. Victoria had the largest increase — 8.4 per cent — with fees rising by $225, from $2715 to $2940. While mature drivers experienced an average increase of 6.5 per cent over the past year, they aren’t paying the highest premium overall. Young male motorists under 25 are still being slugged the most, facing an average annual premium exceeding $3000 because their higher accident rates make them a greater risk for insurers. But if drivers are willing to switch insurers, Canstar says they could save hundreds of dollars. According to the data, West Australians could save up to $630. And young male drivers — who face the steepest premiums out of the driver groups — could save as much as $1000, Canstar says. Canstar.com.au data insights director, Sally Tindall said 51 car insurance products were examined from 43 providers, with the site identifying seven winners. “This year’s premium increases might not have been as steep as previous years for many drivers, but a 5.8 per cent hike isn’t exactly easy to swallow,” she said. “One of the biggest mistakes drivers can make is viewing their annual renewal notice as a tick and flick exercise. Instead, your notice should be seen as a reminder to do a quick comparison. “When shopping around for insurance, price is important, however, it’s not necessarily about getting the lowest price policy in town. You want to be looking for value for money, that is, a decent level of cover at a competitive price. “There are also other ways to reduce your premium, like increasing your excess, removing additional drivers who no longer use the car and maintaining a clean driving record.” The release of the data comes as one of the State’s biggest car insurers, RAC WA, which has been WA-owned for more than 20 years, announced it will sell its entire insurance operations to Insurance Australia Group (IAG), in a deal worth $1.3 billion. The company said the decision was made to adapt to the evolving regulatory environment, higher claim volumes and expenses, and rising reinsurance costs. RAC will continue to distribute general insurance products under the RAC Insurance brand, while IAG will take on underwriting, claims management, product development and pricing. The deal does not affect RAC’s roadside assistance business or its growing portfolios of WA holiday parks and resorts and retirement villages.