Car owners face uncertainty over rising insurance premiums
- Aug 11
- 2 min read
Australian drivers are facing sharply higher car insurance premiums, but many say insurers are not clearly explaining why prices have increased.
A new report from the Australian Securities and Investments Commission (ASIC) found motor vehicle insurance premiums rose by 8 per cent in the 12 months to July 2025. This followed a rise of more than 42 per cent between 2019 and 2024.
ASIC reviewed eight insurance brands across five major insurers, covering about 72 per cent of the market. More than 2,000 consumers also took part in the research.
The review found insurers generally did not clearly explain the main factors behind premium increases in quotes or renewal notices. Some provided only broad explanations, while others gave no explanation at all.
This can make it difficult for customers to compare policies, challenge higher prices or find ways to reduce their premiums.
ASIC also found that paying insurance in instalments can cost more. However, renewal notices often failed to clearly tell customers that paying annually could save them as much as 20 per cent.
The research found that 37 per cent of consumers considered price the most important factor when choosing or renewing insurance.
There was also evidence that negotiating can pay off. Among customers who contacted their insurer before renewing, 31 per cent secured a lower premium without changing their level of cover.
ASIC said consumers should be able to understand why their premiums have changed and encouraged them to question increases and compare offers.
The Insurance Council of Australia said insurers were facing rising costs from extreme weather, insurance-related taxes, vehicle repairs and replacement parts. It said motor claims costs have increased 47 per cent since 2020.
The industry has welcomed greater transparency and said it was working on clearer ways to explain insurance pricing.
For drivers, the message is simple: don’t automatically accept a higher renewal price. Ask why it has increased, negotiate where possible and compare other policies before renewing.
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Source : 9 News
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