Insurance Guide Australia

Australia's Major Insurance Companies

The Australian insurance market is dominated by two major groups that own multiple consumer brands. Understanding who owns what helps you compare genuinely different products rather than comparing two brands owned by the same parent company.

Insurance Australia Group (IAG) owns NRMA Insurance, CGU, Coles Insurance, and WFI. In 2025, IAG acquired RACQ Insurance for $855 million, adding Queensland's most trusted insurer to its portfolio.

Suncorp Group owns AAMI, GIO, Bingle, APIA, Shannons, and Vero. Between them, IAG and Suncorp issue the majority of general insurance policies in Australia.

Other major players include Allianz (global insurer with strong Australian presence), QBE (ASX-listed, both commercial and personal insurance), Youi (personalised pricing, Finder's Best Features award winner), Budget Direct (Canstar's Insurer of the Year five consecutive years), and newer digital insurers like Huddle (usage-based and pay-per-kilometre policies).

Supermarket brands Coles Insurance (underwritten by IAG) and Woolworths Insurance (underwritten by Hollard) offer loyalty points integration but are ultimately backed by the same large underwriters.

The Loyalty Tax: Why Comparing Annually Matters

ASIC has identified a practice where insurers offer attractive introductory premiums to win new customers, then gradually increase prices for existing policyholders each year. This "loyalty tax" means long-term customers often pay significantly more than new customers for identical cover.

Insurance premiums across Australia increased by an average of 6% over the past 12 months, though some policyholders have seen increases of 10% or more at renewal. The previous year saw even sharper increases of up to 30%, driven largely by natural disaster claims from floods, hail, and bushfires.

The single most effective way to combat rising premiums is to compare quotes from at least 3-4 insurers before your renewal date. Because each insurer uses different risk models, the same person can receive quotes that vary by 20-30% between insurers for identical cover.

What Each Type of Insurance Costs in 2026

Car insurance: Comprehensive cover averages $1,700 to $2,900 per year depending on your state, with Victoria the most expensive ($2,940 average) and Tasmania the cheapest ($2,088). Young drivers under 21 pay approximately $3,610 per year — nearly three times more than drivers aged 60-69 ($1,270). See our car insurance guide for a full state-by-state and age-based breakdown.

Home insurance: Building and contents cover typically costs $1,200 to $3,000 per year, though this varies enormously based on your location, property value, and exposure to natural disaster risk. Properties in flood-prone, cyclone-prone, or bushfire-prone areas can pay significantly more. See our home insurance guide for details.

Life insurance: Premiums depend on your age, health, smoking status, and cover amount. A 35-year-old non-smoker seeking $500,000 in term life cover might pay $30-$60 per month. Cover through super is often cheaper but may have limitations. See our life insurance guide.

Income protection: Typically costs 1-3% of your annual income, depending on your occupation, waiting period, and benefit period. A white-collar worker earning $100,000 might pay $1,500-$2,500 per year. Premiums are tax-deductible. See our income protection guide.

Key Insurance Trends in 2026

Premiums are still rising, but more slowly. After sharp increases of up to 30% in the previous year, premium growth has moderated to around 6% nationally. Victoria leads with 8.3% increases ($225 more per year on average). Natural disaster claims remain the primary driver of premium inflation across all states.

EV insurance costs more. Comprehensive insurance for electric vehicles is approximately 40% more expensive than for equivalent petrol cars. Higher repair costs, expensive battery replacement, and a shortage of specialised EV repair technicians are the key factors. As EV adoption grows and repair infrastructure develops, this gap is expected to narrow.

Usage-based insurance is growing. Pay-per-kilometre and telematics-based policies are becoming more common. Huddle offers savings of up to 30% for low-mileage drivers. These policies use apps or devices to track actual driving behaviour, offering fairer pricing based on how much and how safely you drive rather than demographics alone.

Market consolidation continues. IAG's acquisition of RACQ Insurance means fewer truly independent insurers in the market. When comparing quotes, check that you are comparing brands from different parent companies to get genuinely different pricing.