Pricey premiums: 1 in 2 Australians battling rising car insurance costs
More than half of Aussies are facing a price hike on their car insurance, according to new research by Finder.
A Finder survey of 926 car owners revealed 56% have seen the cost of their car insurance policy increase in the last 12 months.
That's 9.9 million drivers who have been stung by the cost of their car insurance premium going up.
The research found a further 14% – equivalent to 2.5 million motorists – said they didn't know if the cost of their car insurance had increased.
Tim Bennett, insurance expert at Finder, said a set-and-forget approach means Aussies could be paying too much for their insurance.
"The rising cost of car insurance is becoming an unfortunate trend and if consumers aren't staying on top of their renewals they could be losing out.
"Regularly comparing your car insurance policy is the best way to ensure you're getting a good deal."
Finder reveals Car Insurance Awards winners
The Finder Car Insurance Awards 2024 showcases the best car insurance products across 3 key categories: value, features and low cost.
This year saw Budget Direct win the top spot for value. Its low pricing was found to be cheaper than 27 other insurers.
Hume Bank came in first place for the features category with experts noting it has greater coverage than most insurers but at a cheaper rate.
For the low cost category, Bingle came out on top. Of all eligible providers, its policy was notably the cheapest.
Bennett said despite rising costs, there are ways you can save on car insurance and still keep your cover.
"Try to be as detailed as possible when taking out your policy to avoid paying for things you don't need.
"There are a bunch of things that insurers will charge more for like having drivers under 25. If you know some of those things don't apply to you, you can definitely save a bit of cash.
"Opting for a higher excess can also reduce your premium but be aware that you will have to pay more upfront if you need to make a claim," Bennett said.
Price hikes are driving Aussies to take action
Finder research reveals just 1 in 3 (36%) car owners have taken steps to deal with rising costs.
Almost 1 in 5 (18%) have switched insurers, while 16% contacted their existing provider to negotiate a better deal.
Some took more drastic measures to cut costs, including 5% who dropped from comprehensive to third party only, 4% who cancelled their insurance altogether and 3% who were forced to sell their car.
When it comes to getting a better deal, the younger generations are more proactive on average, with 25% of gen Z and 24% of millennials switching insurers compared to just 12% of baby boomers.
| Has your car insurance premium gone up in the past 12 months? | |
|---|---|
| Yes | 56% |
| No | 25% |
| I don’t know | 14% |
| I have a car but I don’t have car insurance | 5% |
| Source: Finder survey of 926 car owners, October 2023 |
| Has this rise led to any of the following for your household? | |
|---|---|
| Changed insurer | 18% |
| Called/reached out to my current insurer to negotiate a better deal | 16% |
| Cancelled comprehensive insurance (only have compulsory third party) | 5% |
| Cancelled all insurance | 4% |
| Had to sell my car | 3% |
| I don't know/don't handle the insurance | 2% |
| I didn't do anything | 62% |
| Source: Finder survey of 521 respondents who have noticed a spike in their car insurance premium, October 2023 |
For more information on Finder's Car Insurance Awards 2024, visit https://www.finder.com.au/finder-awards/product-awards/car-insurance-awards.