Luxury Car Insurance in Australia: Enhanced Insights & Market Context
- gareth150
- Aug 18
- 3 min read
Owning a luxury vehicle is not just a status symbol—it’s a substantial investment that demands tailored protection. With rising insurance costs, evolving risks, and growing market demand, having the right cover has never been more critical.
1. Rising costs hit luxury car owners especially hard - Luxury car insurance
A recent Insurance Council of Australia report shows insurance premiums have surged—drivers now shell out over half a week’s income on car insurance, especially for luxury, electric, and sports cars.
On average, car insurance costs $929 per policy, with insurers paying out $1.565 billion across ~18 million policies.
Meanwhile, specialised “luxury car insurance” policies offer extras like agreed-value cover, choice of repairer, and imported part cover—premium features that justify their significantly higher cost.
Take-away: Premiums for luxury car insurance are notably higher—but so is the cost at risk.
2. The luxury car market is growing—and fast
The luxury car market in Australia was valued at USD 9.4 billion in 2024 and is projected to reach USD 13.2 billion by 2033, with a CAGR near 4 %.
Other analysts peg the Australian luxury car market value (AUD) at AUD 246 million in 2024, forecasting growth through 2034 with a CAGR of ~5.9 %.
Implication: As luxury vehicle penetration rises, demand—and risk exposure—for luxury car insurance grows in tandem.
3. Rising theft risks: A serious concern
Queensland saw nearly 7,000 car theft claims last year, totalling $113 million, a staggering ~101 % increase over the past decade.
Insurers and law enforcement continue sounding alarms, especially as higher-value vehicles attract increased criminal attention.
Why it matters for owners: Theft risk for premium vehicles is elevated—and insurance policies must fully account for that.
4. Industry landscape & insurer response
Suncorp recently warned that increasing thefts, along with costly claims due to fires, are pushing up premiums.
IAG—parent of NRMA—announced intentions to raise premiums further, amid strong earnings and low catastrophe losses.
The Insurance Council has released a motor insurance roadmap, highlighting systemic cost drivers and calling for coordinated action.
Bottom line: Insurers are under pressure—costs rising, risk growing, and premiums are likely to follow.
5. What Clarke Lyons Insurance Brings — strengthened by context
Expert market awareness
We’re not just insurers—we’re specialists. We track market cost drivers, theft trends, and premium inflation. That insight helps us tailor policies proactively.
Superior cover for evolving risks
Agreed-value options: fully protect against expiry mismatches in high-value loss events.
Choice of repairer & genuine parts: essential for maintaining value and integrity in high-end vehicles.
Theft and loss defence: crafted clauses that anticipate complex claim scenarios, with expert support.
Personalised risk mitigation
We guide clients in risk reduction strategies (e.g. added vehicle security, storage solutions), which can lead to better premium outcomes or premium relief.
Claims support that matters
In the potentially large and complex claims landscape of luxury vehicles, our proactive advocacy helps ensure goal-aligned, smooth outcomes.
Quick Fact Summary
Insight | Figure |
Average car insurance cost (all cars) | $929 |
Total annual premiums (car) | ~$16.8 billion |
Car theft claims in Qld | ~7,000; $113 million |
Luxury car market size (2024) | USD 9.4B or AUD 246M |
(Data sources: APRA, ICA, market research)
Why this matters right now
Premiums are rising—and likely to keep rising for high-value vehicles.
Theft risk is on the increase, especially for luxury cars.
Standard policies won’t provide the coverage needed—specialist, agreed-value options matter.
Your next move
Speak to Clarke Lyons Insurance to request a tailored luxury car insurance review today. Our clients benefit from deep expertise, personalised strategies, and coverage that aligns with both market realities and their unique vehicle value.
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