Australians still prefer smaller passenger cars to larger SUVs and utes, despite growth in their popularity, with insurance experts saying that larger vehicles carry much higher premiums.

Figures published by Compare The Market on Monday showed vehicles like the Toyota Corolla, Mazda 3 and Hyundai i30 were most popular among those looking for insurance in the past year.

Older Australians, however, were more likely to prefer larger vehicles like SUVs and utes, with those aged over 66 opting for models like the Toyota RAV4, Mazda CX-5, Toyota HiLux and Ford Ranger.

Australians often don’t realise that the vehicle they purchase – whether new or used – has a big effect on how much their insurance costs, which is particularly important as premiums increase.

Bigger costs

Compare the Market’s executive general manager for general insurance Adrian Taylor said the growing trend towards larger utes and SUVs among motorists risks increasing premiums.

“It’s important to keep in mind that car insurance premiums are generally higher for these larger vehicles, luxury cars, and hybrid and full electric models, in addition to other factors,” he said.

Even the colour of your vehicle can influence your insurance bill, with research showing motorists prefer monochromatic shades such as white, silver, grey and black exterior paint.

“While black was among the most popular car paint colours, our research has found it to be the most expensive to cover for some insurers that apply a ‘colour premium’ – in contrast to white and other lighter colours,” Taylor said.

Double-digit rises

Australians have been facing surging car insurance premiums over the past year, with millions of motorists suffering double-digit rises on their last renewal notices amid the cost-of-living crunch.

Taylor said there are still savings available for those willing to shop around, particularly when motorists consider what their insurance costs will be before purchasing a vehicle.

Other ways to save on insurance premiums include tinkering with the level of cover you have and allowances around who’s allowed to drive your vehicle and what happens if there’s a crash.

“No matter what vehicle you own, it’s important to compare what’s on offer to potentially find a better deal,” Taylor said.

“Switch and [don’t] pay a cent more than you need to – rather than staying loyal to the same insurer year on year.”

The latest Compare the Market data also shows the vast majority of Australians are still buying petrol vehicles, with 73.1 per cent of those looking for insurance over the past year trying to cover one.

The second most popular vehicle type was diesel, at 23 per cent, while electric cars were just 1.72 per cent and hybrids were 1.9 per cent.