AAMI Car Insurance Costs Australia 2025–2026: Full Review & Premium Trends

Date of Update: April 27, 2026

Executive Summary: AAMI Car Insurance Costs at a Glance

As of April 2026, AAMI remains one of Australia‘s most recognised car insurers, with over 2.5 million policyholders nationally. The company offers comprehensive, third-party property damage, and compulsory third-party (CTP) / Motor Accident Injuries (MAI) insurance across all states and territories.

Here is a summary of current indicative costs for AAMI car insurance policies:

Policy Type	Typical Annual Premium	Key Notes
Comprehensive Car Insurance	850–850–1,200 (average)	Base premiums start from lower $800s for low-risk profiles; optional add-ons extra
Third Party Property Damage	400–400–600	Covers damage to other people’s cars/property
CTP / MAI Insurance (ACT)	~393–393–419 (passenger vehicle)	Included in vehicle registration fee; varies by vehicle class and ITC entitlement
CTP / MAI Insurance (ACT – goods vehicle under 4.5t)	~478–478–509	Higher for commercial-use vehicles

Based on AAMI’s official pricing schedule for ACT MAI Insurance as of April 8, 2025, and industry averages from Money.com.au and Forbes Advisor Australia.

Industry-wide, comprehensive car insurance premiums across Australia‘s capital cities have climbed to an average of 2,472peryear(approximately2,472peryear(approximately206 per month), reflecting a 14% year-on-year increase according to ABS inflation figures. Within this elevated landscape, AAMI is generally considered a mid-range insurer – not the cheapest, but not the most expensive either.

AAMI offers a range of discounts for safe drivers (up to 25% off Roadside Assist via Safe Driver Rewards) and for bundling multiple policies, though multi-policy discounts have been scaled back in 2025–2026 across the industry.

Important Note: The following analysis reflects data available as of April 27, 2026. Individual premiums vary significantly based on driver age, location, vehicle type, claims history, and chosen excess levels.

1. Detailed Cost Breakdown by Policy Type

1.1. Comprehensive Car Insurance

AAMI’s comprehensive policy covers accidental damage, theft, fire, storm, hail, flood, and legal liability up to $20 million. It also provides a hire car if your vehicle is undriveable, after‑accident care including towing costs, and coverage for personal property inside the vehicle (excluding cash).

Typical annual premiums for AAMI comprehensive cover range between 850and850and1,200, depending on risk profile. Money.com.au’s 2025 analysis indicates that AAMI’s comprehensive premiums are generally in line with major competitors, though exact quotes vary.

Real‑world example: A new AAMI car insurance policy taken out in 2025 cost 589.32;therenewalcostin2026increasedbyexactly25589.32;therenewalcostin2026increasedbyexactly25736.65 with no claims made on the policy.

For low-mileage drivers, AAMI offers kilometre-based discounts. Customers who accurately estimate lower annual driving distances can reduce their premium. AAMI is one of several insurers (along with Apia, Australian Seniors, Budget Direct, Coles, GIO, Suncorp, and Woolworths Everyday) that provide these mileage-based savings.

Age excess structure: AAMI applies age excess for younger drivers, but the excess halves at age 21 and is eliminated entirely at age 23. Many other insurers continue charging age excess until age 25, giving AAMI an advantage for drivers in the 21–24 age bracket.

1.2. Third Party Property Damage Insurance

AAMI’s third party property damage policy covers legal liability for damage to other people’s cars or property caused by the use of your vehicle. It does not cover damage to your own car.

Typical annual premiums range from 400to400to600. AAMI’s base third-party insurance can be as low as approximately $400, according to Chinese-language insurance guides citing AAMI as offering reasonable pricing for students and entry‑level workers.

1.3. CTP / MAI Insurance (ACT)

In the Australian Capital Territory, AAMI provides MAI (Motor Accident Injuries) Insurance, which is included in the total vehicle registration fee paid to Access Canberra. It covers all people injured in a motor vehicle accident, regardless of fault, for up to five years of treatment, care, and lost income benefits. It does not cover vehicle damage or theft.

Official AAMI pricing for ACT MAI Insurance as of April 8, 2025:

Vehicle Class	Classification	Premium (No ITC)	Premium (With ITC)
Class 1	Passenger vehicle	$393.70	$419.20
Class 3	Goods vehicle (GVM ≤ 4.5 t)	$478.80	$509.90

Source: AAMI official MAI Insurance pricing schedule effective April 8, 2025.

For NSW Green Slip (CTP), AAMI achieved a 99.9% completion rate for internal reviews within 28 days, the highest among major insurers – above Allianz’s 98.6%.

2. Factors Influencing AAMI Premiums

AAMI calculates individual premiums based on multiple risk factors:

2.1. Driver-Related Factors

Factor	Impact
Age	Drivers aged 60–69 pay the cheapest average premiums (~1,206);those70+paysecondcheapest( 1,206);those70+paysecondcheapest( 1,248). Under-25 drivers pay higher base premiums plus age excess until 21 or 23 depending on the insurer.
Claims history	Filing a claim increases premiums at renewal. A clean history helps keep costs down.
Driving record	Demerit points, licence suspensions, or at‑fault accidents raise premiums.
Annual kilometres	Lower distance = lower premium. AAMI offers mileage‑based discounts.
Occupation	Some professions are viewed as lower risk and may receive better rates.

2.2. Vehicle-Related Factors

Factor	Impact
Make and model	High-performance, luxury, or sports cars attract higher premiums. Electric vehicles (EVs) are now among the most expensive categories.
Vehicle age	Newer (under 2 years) qualifies for replacement cover if written off. Older cars generally cheaper to insure but may be offered market value only.
Modifications	Performance or cosmetic modifications increase premiums.
Security features	Immobilisers, tracking devices, and secure parking lower the risk profile.

2.3. Location-Related Factors

Factor	Impact
Postcode	Premiums vary by suburb based on theft, vandalism, and accident rates.
Overnight parking	Street parking costs more than locked garage.
Natural disaster risk	Areas prone to floods, bushfires, or storms attract higher premiums.

2.4. Market-Wide Factors

Several external forces are driving premium increases across all insurers, including AAMI:

• Inflation: Up 3.8% year-on-year, impacting parts, labour, and administrative costs.

• Higher repair costs: Supply chain disruptions and rising component prices make repairs more expensive.

• Increased claims frequency and severity: More accidents and higher average claim values.

• Reinsurance costs: Insurers pay more for their own insurance, which flows through to customer premiums.

• Weather events: More frequent and severe storms, floods, and fires.

Industry‑wide motor premiums are estimated to be about 10% higher over the past year. For 2026, J.P. Morgan and Taylor Fry forecast an additional 4% rise in motor insurance premiums overall, although AAMI-specific increases reported by customers range from 16% to 37% for individual renewals.

IAG’s CEO has indicated that premium increases will continue but at a slowing pace, expected to align more closely with general inflation over the next 6–12 months.

3. AAMI vs. Key Competitors: Cost and Value Comparison

3.1. Competitor Premium Ranges

Insurer	Comprehensive Annual Range (Typical)	Key Notes
AAMI	850–850–1,200	Mid‑range; wide discounts; no choice of repairer
NRMA	1,000–1,000–1,600	Premium pricing; excellent road‑side assistance; better repair network
RACV	900–900–1,400	Better claims handling than AAMI per user feedback; minimal price negotiation
Allianz	800–800–1,500	Wide range; aggressive new‑customer discounts; steep renewal hikes common
Youi	Often below AAMI	Highly customised quotes; detailed driver profiling; cheaper base rate
Budget Direct	600–600–1,000	Typically cheaper than AAMI; fewer features; basic cover

3.2. Where AAMI Wins on Price

• New customer introductory offers: AAMI occasionally offers discounts of 20% or more for new policies.

• Safe Driver Rewards: Up to 25% discount on Roadside Assist for consistent safe driving.

• Young driver age excess: Excess halves at 21 and eliminated at 23, better than competitors that continue until 25.

• Low‑kilometre savings: AAMI offers mileage‑based discounts.

• Pay monthly at no extra cost: Monthly payment plans do not attract additional fees or interest charges, unlike many competitors.

3.3. Where AAMI May Cost More

• Loyalty penalty: Like many insurers, AAMI’s renewal premiums can spike dramatically after the first year, forcing customers to shop around.

• Choice of repairer not allowed: You cannot choose your own repairer; AAMI selects the repairer itself, which some customers find sub‑optimal.

• Fewer automatic inclusions: AAMI’s base comprehensive policy includes fewer standard features than some competitors, requiring paid add‑ons for certain extras.

3.4. User Experiences on Premium Hikes

Customer reports across Australian forums show significant variation:

• One AAMI renewal increased by 23.6% while the amount covered decreased by $2,000.

• Another policy increased by 37%.

• A 2025 policy costing 589.32renewedat589.32renewedat736.65 in 2026 – a 25% increase.

• NRMA customers have reported switching to AAMI after 26% increases.

3.5. Comparison Table: AAMI vs. Key Rivals (Comprehensive Cover)

Metric	AAMI	NRMA	RACV	Youi	Budget Direct
Typical annual premium	850–850–1,200	1,000–1,000–1,600	900–900–1,400	Often below AAMI	600–600–1,000
New customer discount	Occasional 20%+	Limited	Minimal ($100 max)	Varies	Frequent
Safe driver discount	Yes (up to 25%)	Limited	No	No	No
Choice of repairer	No	No (default) / Yes (extra)	No	No	No
Monthly payment premium	No extra cost	Extra	Extra	Extra	Extra
Customer satisfaction	Below average (62%)	Above average (72%)	Below average (64%)	Above average (77%)	Below average (62%)
Age excess elimination	Age 23	Age 25	Age 25	Age 25	Age 25

4. Customer Satisfaction and Claims Experience

4.1. CHOICE Survey Results

CHOICE‘s May 2025 survey of over 1,800 car insurance policyholders found significant differences in customer satisfaction. The average satisfaction rating across all insurers was 68% (rating experience as above average or excellent).

Insurer	Satisfaction Rating	Rank
RAA (SA)	91%	#1
RACQ (QLD)	85%	#2
Youi	77%	#3
NRMA	72%	#4
Suncorp / Apia	68%	Average
AAMI	62%	Below average
Budget Direct	62%	Below average
Allianz	61%	Below average

Source: CHOICE car insurance customer satisfaction survey, May 2025.

Key insight: AAMI falls into the below‑average tier alongside Budget Direct and Allianz, while mutual and state‑based clubs (RAA, RACQ, RAC) dominate the top rankings.

4.2. ProductReview.com.au Ratings

AAMI has over 2,000 customer reviews on ProductReview.com.au, with an average rating of only 1.7 stars out of 5. Many complaints cite poor customer service and long wait times.

4.3. Forum Experiences (Positive)

• One user reported AAMI service as “top tier” and on par with other major insurers, though warned of potential renewal hikes.

• AAMI provides a hire car (with insurance transferred), Uber to/from repairers, and efficient claim processing for many.

• Some experienced “friendly” phone service and professional in‑person support.

4.4. Forum Experiences (Negative)

• Long repair times (20+ days for a bumper replacement) compared to 10 days with RACV.

• Difficulties when accidents involve unlicensed drivers or uninsured third parties.

• Poor Google reviews for certain repair centres used by AAMI, though some repairers are highly rated.

4.5. CTP Claims Performance (NSW)

For NSW CTP (Green Slip) covering injuries from motor accidents, AAMI achieved a near‑perfect 99.9% completion rate for internal claims reviews within 28 days, compared to 98.6% for Allianz. Around 79% of reviews were upheld (up from 77% last year).

5. How to Reduce Your AAMI Premium in 2026

Method	Estimated Savings	How it Works
Increase excess (AAMI Flexi‑Premiums®)	10%–30%	Higher out‑of‑pocket claim cost = lower premium
Safe Driver Rewards	Up to 25% off Roadside Assist	Keeps a safe driving score via telematics; unlocks tiered discounts
Lower annual kilometres	5%–15%	Honest estimation of km driven per year
Remove young or occasional drivers	Varies	If listed drivers no longer use the car regularly
Pay annually instead of monthly	~4%–8%	Avoid monthly payment processing fees
Bundle home and car insurance	10%–20% historically	Industry‑wide scaling back in 2025–2026, but some discounts remain
Shop at renewal	Potentially hundreds of dollars	Get quotes from competitors (Youi, NRMA, Budget Direct) and negotiate or switch
Install approved security devices	5%–10%	Immobilisers, tracking systems, secure parking
Choose agreed value carefully	N/A	Higher agreed value = higher premium; market value may be cheaper
Set renewal reminder	Potentially hundreds	Compare before auto‑renewing; new customer offers are often cheaper than loyalty pricing

6. 2026 Outlook: Where Are Premiums Heading?

6.1. Industry-Wide Trends

Key forecasts for 2026:

Factor	2025 Level	2026 Outlook
Motor industry premium increase	~10% year-on-year	~4% additional rise（JP Morgan / Taylor Fry）
Inflation rate (Australia)	3.8% (Dec 2025)	Expected to moderate
Average comprehensive premium (capital cities)	$2,472	Projected ~2,570–2,570–2,600
EV premium increase (year-on-year)	+10.2%（March 2025 → March 2026）	Further stabilization likely
Hybrid premium increase (year-on-year)	+6.6%（March 2025 → March 2026）	Further stabilization likely
Household insurance rise forecast (2026)	N/A	~9%（from industry sources）

6.2. AAMI‑Specific Outlook

• IAG (AAMI‘s parent company) has signalled ongoing above‑inflation premium increases as it manages rising repair and reinsurance costs.

• IAG’s CEO expects premium increases to align more closely with general inflation over the next 6–12 months. For policyholders, this means premiums may continue rising, but at a slowing rate.

• Electric vehicle owners face the steepest rises: average comprehensive EV premiums increased from 2,071inMarch2025toapproximately2,071inMarch2025toapproximately2,300 in March 2026. A Tesla Model Y RWD, for example, saw premiums rise from 3,039to3,039to3,203 over the same period.

• AAMI’s Safe Driver Rewards program and telematics‑based pricing are likely to expand as insurers increasingly shift towards usage-based insurance models.

6.3. Impact on Household Budgets

With comprehensive car insurance costing an average of 1,362andthird‑partyinsurance1,362andthird‑partyinsurance522 nationally, these rising costs are impacting household budgets. A February 2026 survey found that 5% of Australians have already cancelled their car insurance policies entirely due to affordability pressures.

Ideal driver profile for lowest possible comprehensive premium: aged 60–69, clean record, low annual kilometres, secure garage parking, standard family sedan (e.g., Toyota Camry or Mazda 3), living in a low‑risk postcode.

7. Conclusion

AAMI remains a solid mid‑range car insurance option in Australia’s 2025–2026 market. With comprehensive premiums typically ranging from 850to850to1,200 annually (though base rates can be lower for optimal profiles), the insurer offers genuine value for specific driver segments through its age excess structure, Safe Driver Rewards discounts, and low‑kilometre adjustments. AAMI consistently offers one of the most competitive base‑rate pricing structures among top‑tier insurers.

However, customers must actively manage their policies – shopping around at renewal, increasing excess where financially feasible, and maintaining safe driving records – to avoid loyalty penalties of 16%–37% seen by many existing customers.

On customer satisfaction, AAMI lags behind state‑based clubs (RAA, RACQ) and Youi but remains comparable to Budget Direct and Allianz. The 62% satisfaction rating from the CHOICE survey and 1.7‑star average on ProductReview suggest room for improvement in claims handling and repair turnaround times.

For drivers seeking maximum savings, a strategic approach combining AAMI’s introductory offers with competitors’ pricing may yield optimal results. Switching providers every 12–24 months is often the most effective way to keep premiums low in Australia’s current insurance market.

Looking ahead to the remainder of 2026, premiums are expected to rise by approximately 4% industry‑wide, with IAG signalling above‑inflation increases for the near term before slowing. EV and hybrid owners should anticipate continued elevated premiums, while safe, low‑kilometre drivers in low‑risk areas stand to benefit most from AAMI’s discount structures.

AAMI remains a recommended choice for young drivers over 21 (benefiting from age excess elimination at 23), safe drivers (using telematics discounts), low‑kilometre users, and those comfortable with AAMI’s choice of repairer. For customers prioritising choice of repairer or top‑tier customer satisfaction, NRMA or state‑based clubs may still be worth the premium.

Disclaimer: This review is based on information available as of April 27, 2026. Premiums, discounts, and policy terms are subject to change. Always obtain a personalised quote directly from AAMI and read the Product Disclosure Statement (PDS) before purchasing any insurance product.