Australian drivers are facing increases in their car insurance premiums as inflation continues to rise, according to a new study by Finder.
A Finder survey of 933 car owners found that more than half (55%) have noticed an increase in their car insurance premiums over the past 12 months.
The study found that 1 in 10 (11%) do not know if their car insurance premium has increased over the past 12 months, while 6% do not have car insurance as a back-up to protect them against unforeseen events.
According to Finder’s Consumer Sentiment Tracker, 1 in 10 (9%) Australians listed car insurance as one of the top 3 bills causing them the most stress in March 2023.
James Martin, insurance expert at Finder, said Australia was dealing with record inflation and car prices were no exception.
“Auto insurance premiums are rising for many reasons, from higher parts and repair costs to rising crime rates and even natural disasters.
“It also costs insurers more to process claims. This means your premium could increase even though driving habits or entitlements don’t change.”
Price (46%) is the most important factor Australians look to when making their decision about car insurance.
Other determining factors are completeness (32%) and brand awareness (14%).
The winners of the 2023 Finder Car Insurance Awards have been announced
The Finder Awards for Best Car Insurance 2023 have been announced.
Finder reviewed 1,182 comprehensive auto insurance quotes from 37 brands, ranking policies by scope, price and value.
There was a difference of $1,456 between the cheapest and the most expensive policy.
Youi’s comprehensive policy stood out in this year’s Finder Award for Car Insurance – Features because it covers more than other insurers but is still a comparatively cheap policy.
Highly recommended policies in the Features category included Hume Bank – Comprehensive and Qantas – Comprehensive.
Budget Direct’s comprehensive car insurance won this year’s Finder Award for Car Insurance – Value for offering a similar level of coverage to other insurers, but at a lower price.
The Value category included Hume Bank – Comprehensive, which also received high praise in the Features category, and Youi – Comprehensive, which won in the Features category.
Martin said that despite the price hikes, there are ways to lower your car insurance premium.
“If you opt for a higher deductible, your premium will be reduced — sometimes by a few hundred dollars — but you’ll have to pay more up front if you need to make a claim.
“You could remove coverage for under-25 drivers if you are sure no younger drivers will need to use your car.
“You could avoid filing claims for minor scratches and minor dents as this can increase your premium on each claim.
“Look for discounts like sign-up offers and always review your policy at least every 12 months.”
“Remember, loyalty doesn’t pay – today’s cheapest policy could be more expensive when it’s renewed next year. You could save hundreds by switching providers,” Martin said.
Has your car insurance premium increased in the last 12 months?Yes55%No27%Don’t know11%I don’t have car insurance6%Source: Finder survey of 933 respondents with car, February 2023What is the most important factor when choosing your car insurance?Price46%How comprehensive the policy is is32%I know the brand14%Extras such as roadside assistance5%I have a car but no comprehensive insurance3%Source: Finder survey of 933 respondents with a car, February 2023
For more information on the Finder Car Insurance Awards 2023 visit https://www.finder.com.au/finder-awards/product/car-insurance-awards-2023