World car insurance: Where is the cheapest and most expensive place to get insured?

If you live in New South Wales or Victoria then you probably feel like your car insurance premiums are a little higher than you might like.

A family premium on average in New South Wales can cost upward of $2000 per year.

If you think that’s high then spare a thought for countries like Hong Kong, where it’s likely going to cost you three times more to insure your car then it would in Australia.

In fact, when we examine car insurance premiums from around the world, Australia is actually quite reasonable.

Research from Prestige Performance Centre, suggests that Australia is about mid-range when it comes to the cost of insuring your car. With the notoriously pricey Asian city of Hong Kong leading the way as the most expensive in the world.

An annual car insurance policy in Hong Kong is on average going to set you back more than $4000.

*Data from Prestige Performance Centre (AUD)

At the other end of the scale, in countries like oil-rich Saudi Arabia or Russia, the annual premium is far more manageable averaging less than $400.

Insurance and running costs vary significantly from country to country for a number of reasons.

In cities like Singapore and Hong Kong, authorities do everything they can to limit the number of cars on the road due to congestion. In Singapore alone, costs of purchasing a car run into the hundreds of thousands of dollars when you incorporate Government taxes and entitlement costs. The cost of living in Hong Kong is virtually the highest in the world and this is reflected in the level of insurance premiums and the average cost of cars.

Interestingly Brazil has very high premiums, which is related to the level of crime amongst other factors.

Oil-rich nations are often the cheapest to own and run cars and this is reflective of the lower priced countries of Russia and Aarabi. The impact of government fees and the cost associated with compulsory third party insurance can have a dramatic effect on the size of premiums.

On average Australia stacks up well. If you live outside NSW and Victoria then you can expect to be well ahead on average than both Australia and the rest of the world.

Remember, even though prices are reasonable, you still need to always compare car insurance premiums to make sure you’re not only getting the best deal but that the coverage also suits your individual requirements.

Some quick tips to keep your insurance costs down:

• Find the right level of cover to suit your needs – that might be simple CTP or comprehensive.
• Change your excess – if you’re a careful driver you might consider increasing your excess to reduce your annual premiums
• Get the kids off the policy – if your kids are on your policy you are likely paying a higher premium than you might otherwise. Consider taking them off if they aren’t regular drivers of your car.
• Keep your car off the street and in a lock-up garage to reduce the chances of damage or theft.