ASIC urges motorists to question soaring car insurance premiums
The Australian Securities and Investments Commission says drivers should push insurers for clearer explanations and better deals as car insurance costs rise faster than inflation.
A report released by the Australian Securities and Investments Commission revealed that none of the eight car insurers it examined provided adequate explanations for premium calculations or price changes in renewal documents. Premiums rose 8% in the 2025 financial year and have already increased 3.1% in the first four months of 2026, far exceeding general inflation. ASIC discovered that roughly one in three policyholders who queried their insurer before renewal secured a lower premium despite no alteration to coverage.
Insurers also offer a 10%-20% discount for annual payments, yet this benefit is omitted from renewal communications. The regulator criticized the lack of clear disclosure, saying it hinders customers from comparing offers. The Insurance Council of Australia said it is exploring options to make premium breakdowns more understandable, noting that motor claim costs have risen 47% since 2020. ASIC urged motorists to challenge insurers, demand explanations, and shop around for better rates.
Why it matters
Consumers face rapidly rising car insurance costs and often lack the information needed to compare or contest price hikes.
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