Australia car insurance premiums surge 50% over six years

Car insurance premiums in Australia have surged approximately 50% over the last six years, with an 8% increase recorded in the year leading to July 2025. This growth significantly outpaces the 3% increase in the consumer price index.

A report by the Australian Securities and Investments Commission (ASIC) found that insurers are failing to provide clear explanations for these hikes. ASIC commissioner Alan Kirkland noted that most insurers provided only generic explanations or none at all, preventing customers from making informed decisions about whether to switch providers.

The investigation revealed that 31% of surveyed customers were able to secure lower rates simply by calling their insurer to dispute a quote. Additionally, insurers often fail to disclose that paying in installments can be significantly more expensive than a single annual payment, with upfront payments potentially saving customers up to 20%.

Industry representatives attribute rising costs to a 47% increase in claim costs since 2020, driven by the higher repair costs of SUVs and electric vehicles, as well as a shortage of specialized technicians.