Car owners should challenge insurers on steep price hikes and ‘call their bluff’, Asic says
Summary
The Australian Securities and Investments Commission (ASIC) found that many car insurers are raising premiums faster than inflation and are not clearly explaining these price changes to customers. ASIC advises car owners to question insurers about steep price increases and request better deals, as some customers have successfully secured lower premiums by doing so.Key Facts
- ASIC reviewed eight car insurers and found poor explanations for why premiums changed or how they were calculated.
- Car insurance premiums increased by 8% in the 2025 financial year, much faster than inflation.
- Consumer group Choice reported premiums rose 3.1% in the first four months of 2026 alone.
- Comprehensive car insurance now costs about $2,460 on average, up $111 from the previous year.
- One in three customers who called their insurer before renewal received a lower premium without changing their policy.
- Some insurers charge 10% to 20% less if customers pay annually rather than in installments but do not clearly advertise this saving.
- Rising costs for car repairs and parts have increased claim costs by 47% since 2020.
- More than half of complaints about general insurance to ASIC relate to motor vehicle products, mostly about premiums.
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