What can consumers do about rising premiums?
This page gives general information. It is not financial product advice and does not take your circumstances into account. It does not recommend any insurer or product.
Short answer
ASIC found that 31% of car insurance customers who contacted their insurer at renewal obtained a lower premium without changing their cover, and that paying by instalments often cost 10% to 20% more than paying annually.
Renewals
In ASIC’s research on car insurance, 67% of consumers renewed with the same insurer, and 40% neither contacted their insurer nor compared quotes. Of those who did contact their insurer, 31% obtained a lower premium without changing their cover (ASIC 2026).
ASIC found that no insurer in its review explained the key factors behind a premium in quote and renewal documents. It expects insurers to explain the main factors behind a customer’s premium and why it changed (ASIC 2026).
Payment method
ASIC found that paying car insurance by instalments often cost 10% to 20% more than paying annually, and that 54% of consumers either did not know this or missed it (ASIC 2026).
Excess
The excess is the amount the policyholder pays towards each claim. A higher excess usually lowers the premium and increases the amount paid when a claim is made.
Sum insured
Home building cover pays up to the sum insured on the policy. ABS prices for new dwellings rose 41.3% over the five years to the September quarter 2026.
Mitigation
The ACCC found that more insurers now recognise steps policyholders take to reduce the risk of cyclone damage, but some have yet to put a framework in place and the information they give consumers varies in clarity (ACCC 2026).
Where to get help
- Free financial counselling. The National Debt Helpline offers free, confidential help from financial counsellors.
- Complaints. The Australian Financial Complaints Authority is a free, independent dispute resolution service.
- Information. ASIC’s Moneysmart has independent guidance on choosing and comparing insurance.
Last reviewed 3 November 2026.