Car insurance premiums have climbed more than 40 per cent since 2019, and what drivers can do about it
Australian drivers are being hit with another round of car insurance increases, with ASIC finding premiums rose more than 42 per cent between 2019 and 2024. Renewal notices of around 10 per cent are landing again in 2026, following a similar jump last year.
The rises come after a review by the Australian Securities and Investments Commission (ASIC) found that premiums have climbed far faster than inflation, and that insurers are not explaining why.
What the ASIC data shows
ASIC's report, released in August 2026, found that motor vehicle insurance premiums rose by more than 42 per cent between 2019 and 2024, and by a further 8 per cent in the 12 months to July 2025. Combined, that is a rise of more than 50 per cent across that period. Individual policies have risen even faster, with examples of increases of 57 per cent since 2023 and close to double since 2020.
| Period | Premium growth |
|---|---|
| 2019 to 2024 | More than 42 per cent |
| 12 months to July 2025 | 8 per cent |
| 2026 renewals | Around 10 per cent in many reported cases |
ASIC also found that no insurer in its sample explained in quote and renewal documents the key factors behind the premium, or why it had changed from the previous year. Most gave only generic reasons for increases. The federal government has committed $2.4 million to reforms aimed at improving insurer transparency.
Why premiums keep rising
Insurers point to the cost of claims. Industry figures show the average motor claim rose 32 per cent to $6,266 over the four years to 2026, driven by higher vehicle replacement, parts and labour costs and longer repair times. Shortages of parts and skilled technicians, plus the specialised equipment modern cars need, add to the bill. The automotive trades are estimated to be short about 38,000 workers.
What drivers can do about it
- Shop around at every renewal rather than accepting the new price. Loyal customers who do not compare quotes can pay more.
- Check the insured value of your car and choose agreed or market value to suit your needs.
- Make sure the yearly kilometres on your policy match how much you actually drive.
- Consider a higher excess if you can afford it in the event of a claim.
- Remove listed drivers who no longer use the car.
- Ask your insurer to explain the increase and whether any discounts apply, such as paying annually.
It also helps to understand which type of cover you need. Our guide to comprehensive versus third party cover explains the differences, and our CTP, third party and comprehensive guide covers what is compulsory. For average costs in your area, see our car insurance costs by state.
Thinking about your next car
The car you choose also affects your premium. Repair costs, theft rates and safety ratings all play a part, so it is worth getting an insurance quote before you buy. You can compare models in our new car showroom.
