Car insurance premiums are rising, with rates climbing by 4.3 per cent in 2017, according to the latest data.

Photo: Alex Ellinghausen The latest data shows that rates are rising in the car industry, with the highest average annual rate for a one-year policy in 2018, which covers a driver aged 18 or over.

The average annual premium for a two-year car insurance policy has risen by 6.7 per cent, while the rate for the third-year is 7.5 per cent.

Drivers in the 18-20 bracket are also paying more than the national average, with a three-year premium for the most common vehicle in the same bracket now rising by 16.3 cents per kilometre.

The rise in car insurance premiums has been driven by rising costs for a range of reasons.

The cheapest insurance is now cheaper than the cheapest policy for a car buyer aged 18 to 20, according the Insurance Council of Australia.

For older drivers, the cost of the policy is still much cheaper than other insurance options, especially if they are older than 65, and a policy is not required to cover accidents and bodily harm.

The Government is also considering changes to car insurance, including a national car insurance levy to help pay for health and disability benefits, and the creation of a new insurance company to offer low-cost car insurance.

Read more: “Insurers have been trying to get rates up a bit and that is causing some issues,” said Paul Lister, chief executive of the Australian Car Insurance Association.

“We think it is fair to say that they are under pressure to do that.”

It is just an ongoing challenge.

“Lister said insurers were “making an honest effort to reduce the cost and improve the quality of coverage, but it is not a perfect match for consumers, especially older drivers.””

So it’s certainly something that will have to be addressed, particularly for drivers.

“The cost of insurance in Australia is up more than 50 per cent since 2007, with average premiums growing by 6 per cent from $6,100 in 2017 to $9,600 in 2018.

The latest data showed that average premiums rose in all categories except for the cheapest one-off premium, which fell by 5.9 per cent to $5,800 in 2018 from $5-6,400 in 2017.

The data shows the cost to insure a one or two-wheeled vehicle in Australia has been increasing by 12.4 per cent over the past decade, with some insurers seeing an increase of more than 10 per cent every year.

The Insurance Council’s latest annual survey shows that more than two-thirds of people aged 18-35 years are in their 40s or 50s, with most people living alone.

The survey showed that most people aged 50-64 years have the most expensive car insurance and a third of them have less than $30,000 in car ownership.

The median cost for a driver with one-and-a-half years of driving experience in Australia was $11,500 in 2018 compared with $8,200 in 2017 and $7,700 in 2017 respectively.

The report shows that people aged 65-74 were the most likely age group to own a car, with 44 per cent of those aged 65 years and over owning a vehicle compared with 34 per cent for those aged 55 years and older.