Car owners left guessing about insurance premium price hikes
The Australian Securities and Investments Commission (ASIC) reports that car insurance premiums have risen by 8% in the last year, significantly outpacing inflation. The watchdog criticized insurers for failing to provide clear explanations for these price hikes to consumers.
Why it matters
Rising insurance costs are a significant burden on household budgets, and lack of transparency prevents consumers from making informed financial decisions.
shares Share article Car owners are being left in the dark about the cause of steep price rises for insurance premiums , the consumer watchdog says.
During the 12 months to July 2025, there was an 8 per cent hike in the cost of motor vehicle insurance premiums – well above inflation – a report today by the Australian Securities and Investments Commission found.
Steep motor insurance hikes have left consumers baffled, says ASIC. Getty
This followed increases of more than 42 per cent between 2019 and 2024.
“Most insurers gave only generic explanations in supplementary documents, with some providing no explanations at all. This fails to meet the needs of customers trying to understand the reasons for significant price increases,” ASIC commissioner Alan Kirkland said.
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