Consumers left in the dark about rising car insurance premiums, ASIC warns

ASIC has found that none of the car insurers it reviewed adequately explained to customers why their premiums were rising, in findings released in Report 838 Road testing transparency in car insurance premiums on 11 August 2026. The review covered eight insurance brands across five insurers, together representing around 72 per cent of the motor vehicle insurance market, and included consumer research involving more than 2,000 Australians. ASIC found that motor vehicle insurance premiums rose by 8 per cent in the year to July 2025, following growth of more than 42 per cent between 2019 and 2024, well ahead of inflation.

ASIC Commissioner Alan Kirkland said none of the insurers reviewed explained in quote or renewal documents the key factors affecting how premiums were calculated or why they had changed from the previous year, with most giving only generic explanations and some providing none. The review also found that paying premiums by instalment rather than annually could cost 10 to 20 per cent more with many insurers, a difference that 54 per cent of surveyed consumers either did not know about or missed in the fine print. Consumer research further showed that 67 per cent of policyholders stay with the same insurer at renewal and 40 per cent do not shop around, often on the mistaken assumption that negotiating will not help, when ASIC's data showed 31 per cent of those who contacted their insurer did obtain a lower premium.

The report sets out ASIC's expectations for improved disclosure practices rather than announcing a new legal requirement or enforcement action, and insurers are expected to respond to the findings as the regulator continues to monitor transparency in general insurance pricing.