ASIC Warns Insurers Are Leaving Households in the Dark on Rising Car Insurance Premiums

The corporate regulator has found that none of the major car insurers it reviewed clearly explain why a household’s premium has gone up, despite premiums rising well above inflation over the past year.

What Happened

ASIC’s report on transparency in car insurance premiums examined eight insurance brands across five insurers, together representing around 72% of the market, alongside consumer research involving more than 2,000 Australians. ASIC found that none of the reviewed insurers clearly explained the factors behind a premium increase in quote or renewal documents, with most giving only generic explanations and some providing no explanation at all.

Why It Matters

Motor vehicle insurance premiums rose 8% in the 12 months to July 2025, on top of a cumulative rise of more than 42% between 2019 and 2024. ASIC Commissioner Alan Kirkland said that with many households already under cost-of-living pressure, consumers deserve to know why their premium is increasing so they can decide whether to stay with their insurer or shop around.

Who Is Affected

Australian households with car insurance, which is the large majority of vehicle-owning households. ASIC’s research found 67% of consumers renew with the same insurer each year, and 40% never shop around at all. Of those who do contact their insurer to negotiate, 31% achieve a lower premium. ASIC also found a price gap of 10 to 20% can exist between paying annually and paying by instalments, something 54% of consumers are unaware of.

What to Do / What to Watch

Read your renewal notice carefully rather than letting it auto-renew. Get at least one competing quote before you renew. Call your insurer directly and ask what is driving the increase, since ASIC’s research shows a meaningful share of people who ask do get a better outcome. Check whether paying annually rather than by instalments would save you money.

Official Source / Verification

This article is based on the official ASIC media release 26-189MR, “Consumers left in the dark about rising car insurance premiums, ASIC warns.”

For general help managing household costs during a period of rising bills, see our guide on how to manage a household budget during the cost-of-living squeeze.

This article is general information only and does not constitute financial advice. Compare insurers and consider your own circumstances before making a decision.