How expensive is car insurance in Australia?

Car insurance in Australia is considered moderately expensive by world standards, more expensive than the US average but cheaper than the UK for young drivers. The cost consists of two parts. Compulsory Third Party insurance is mandatory and costs $300 to $700 per year in most states where it is included in registration, and $700 to $1,200 per year in NSW and ACT where you buy it separately. Comprehensive insurance, which about 80% of drivers buy, costs on average $1,400 to $1,800 per year nationally for a 35 to 50-year-old driver with rating 1 no-claim bonus driving a $35,000 car. However, for young drivers under 25, comprehensive insurance is very expensive at $1,800 to $3,500 per year for the same car, and for high-performance cars or European luxury cars like BMW, Mercedes, Audi and Tesla, it can be $2,500 to $4,000 per year due to high repair costs. For older drivers over 50 in regional areas with a small hatch like Toyota Yaris or Mazda2, comprehensive can be as low as $600 to $900 per year. Factors that make it expensive include living in high-claim postcodes like Western Sydney, Logan in QLD and northern Melbourne, having previous at-fault claims, having traffic offences, parking on street, driving high kilometres over 25,000 km per year, and owning cars with expensive parts. Third Party Property Only cover is cheap at $300 to $600 per year. Compared to wages, car insurance is about 1.5% to 3% of average annual income, which is manageable for most but a significant burden for young drivers.