Car Insurance Premiums Surge 8% in a Year as ASIC Pressures Insurers to Explain Sharp Price Hikes

Car insurers are facing mounting pressure to justify steep and sustained premium increases after a new review by Australia’s corporate regulator found prices have risen far faster than inflation. The Australian Securities and Investments Commission (ASIC) revealed today that motor insurance premiums jumped 8% in the year to July 2025, following an extraordinary 42% rise between 2019 and 2024.

The review examined eight major insurance brands across five insurers a group that represents nearly three‑quarters of Australia’s car insurance market after ASIC recorded a significant spike in consumer complaints.

“Car insurance was the most complained‑about insurance product in 2024–25, and the biggest reason people complained was premiums,” ASIC commissioner Alan Kirkland said. “This is a real source of consumer pain, and that’s not a surprise given many people are battling cost‑of‑living concerns.”Car Insurance Premiums Surge 8% in a Year as ASIC Pressures Insurers to Explain Sharp Price Hikes

Car insurers are facing mounting pressure to justify steep and sustained premium increases after a new review by Australia’s corporate regulator found prices have risen far faster than inflation. The Australian Securities and Investments Commission (ASIC) revealed today that motor insurance premiums jumped 8% in the year to July 2025, following an extraordinary 42% rise between 2019 and 2024.

The review examined eight major insurance brands across five insurers a group that represents nearly three‑quarters of Australia’s car insurance market after ASIC recorded a significant spike in consumer complaints.

“Car insurance was the most complained‑about insurance product in 2024–25, and the biggest reason people complained was premiums,” ASIC commissioner Alan Kirkland said. “This is a real source of consumer pain, and that’s not a surprise given many people are battling cost‑of‑living concerns.”

ASIC’s findings intensify scrutiny on an industry already under fire for rising costs, opaque pricing models and inconsistent explanations for premium increases. The regulator is now pushing insurers to provide clearer, evidence‑based reasons for the sharp hikes especially as households across Australia struggle with financial pressure.