The Australian Securities and Investments Commission (Asic) has released a report advising car owners to challenge motor insurers regarding steep premium hikes. The regulator found that many companies were increasing prices at a rate faster than inflation.
According to Asic, car insurance premiums rose by 8% in the 2025 financial year. The report, released on Tuesday, also highlighted that none of the eight insurers reviewed provided adequate explanations for premium calculations or changes in prices within quote or renewal documents.
Asic Commissioner Alan Kirkland stated that most insurers offered only generic explanations in supplementary documents, with some providing no explanations at all. The regulator also uncovered that approximately one in three customers who contacted their insurer before renewal secured a lower premium without altering their policy.
Furthermore, five of the surveyed insurers charged 10% to 20% less for annual payments compared to instalments, but these savings were not clearly communicated in renewal notices. The Insurance Council of Australia acknowledged the findings, stating it is exploring options to explain premiums more clearly and noted that motor vehicle claim costs have risen by 47% since 2020 due to increased repair and parts expenses.