The Australian Securities and Investments Commission has published a review finding widespread shortcomings in car insurers’ premium disclosures. None of the five insurers reviewed clearly explained in quote and renewal documents the key factors used to calculate premiums or why prices had changed from the previous year. The review covered eight brands representing about 72% of the market and included research involving more than 2,000 consumers. Insurers also failed to make clear that customers paying by instalments could save up to 20% by paying annually. While 67% of consumers renewed with the same insurer and many did not seek a better price, 31% of those who contacted their insurer secured a lower premium without changing their cover. ASIC called for quote and renewal documents to show the drivers of premium changes, the price effects of cover choices and payment methods, instalment costs compared with annual payments, and year-on-year changes to key policy terms. ASIC will provide individual feedback to participating insurers and continue monitoring industry practices. It also warned that it will take enforcement action where premium disclosures are inaccurate or misleading.
Australian Securities & Investments Commission2026-08-11
Australian Securities and Investments Commission finds all reviewed car insurers fail to explain premium calculations
The Australian Securities and Investments Commission found that none of the five car insurers reviewed clearly explained premium calculations or price changes in quote and renewal documents. It called for clearer disclosure of pricing factors, policy changes and instalment costs, which can be up to 20% higher than annual payments. ASIC will give insurers individual feedback, monitor practices and act against inaccurate or misleading disclosures.