Car owners should challenge insurers on steep price hikes and ‘call their bluff’, Asic says

Australia's corporate regulator Asic released a report finding many motor insurers were raising premiums faster than inflation, with none of the eight reviewed insurers adequately explaining premium calculations to customers. Commissioner Alan Kirkland advised car owners to challenge steep price hikes and 'call their bluff' by asking insurers for better deals. The regulator cited poor price transparency across the motor insurance sector.

Insurance premiums have become a major household expense and inflation driver in recent years, though the industry has faced less consumer scrutiny than sectors like supermarkets. Rising premiums force most households to pay more but leave customers poorly informed about why prices change. Asic framed this as an imbalance where many insurers gave only generic explanations or none at all.

Motor insurance is an unavoidable cost for most Australian households, so transparency and fair pricing have direct cost-of-living impacts. Asic's call gives consumers a practical lever to negotiate, potentially pressuring insurers to justify rises. The findings could prompt further regulatory scrutiny of the broader insurance market.