Car insurance premiums increase almost 60pc in four years
Some comprehensive car insurance premiums have nearly doubled since 2020 as the government calls on the industry to "step up with fairer pricing and greater transparency".
Over the past four years, comprehensive car insurance premiums have risen by nearly 60%, driven by successive increases since 2020. Insurer transparency has been called into question, with ASIC reporting a 42% surge in premiums from 2019 to 2024, and another 8% increase in the following year. Insurers have been criticized for not providing detailed explanations for rate hikes, with 73% offering only generic reasons.
The government has committed $2.4 million to reforms aimed at increasing transparency in the motor insurance market. Car insurance for a journalist's station wagon, for example, has jumped from $566 in 2020 to $1,110 in 2025, a 96% increase. ASIC's review found that the average motor claim had risen by 32% to $6,266 over four years, attributing the surge to higher vehicle replacement, parts, labor costs, and longer repair times.
These factors are driven by national parts and skills shortages and the need for specialized equipment and expertise to service modern vehicles. The Insurance Council of Australia has called for governments to regulate the credit hire industry, address repair workforce shortages, and require manufacturers to make spare parts readily available in Australia.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
