ASIC has released a review finding that car insurance premiums rose 8 per cent in the year to July 2025, far exceeding inflation, after complaints about the product topped the corporate regulator's complaints register in 2024-25.

The watchdog examined eight brands under five insurers representing nearly three-quarters of the market and found their renewal notices did not clearly explain why premiums were rising beyond inflation. "Insurers tell us there are a range of reasons for these significant increases, but the problem is they're not explaining the reasons for those increases," ASIC commissioner Alan Kirkland said. "That's important because people need to understand how much their premium has actually gone up."

ASIC found that nearly 40 per cent of people who renewed their policy did not contact their provider or compare quotes, yet almost one in three of those who questioned their premiums ended up with a better deal. Insurers also failed to make clear in renewal notices that customers paying in instalments could save between 10 and 20 per cent by paying annually. "Loyalty doesn't pay," Mr Kirkland said, ABC business (AU) reports.