Grim new research has found that one-in-two Aussie drivers are facing nasty car insurance hikes as the nation’s cost of living crisis continues to bite.
Australian motorists are now facing unwelcome price increases to their car insurance premium as inflation continues to rise, according to new research by Finder.
A nationally representative survey of car owners revealed more than half – 55 per cent, in fact – have noticed a spike in their car insurance premium in the last 12 months.
The research found one-in-10 don’t know if their car insurance premium has gone up in the last 12 months, while a worrying 6 per cent don’t have any car insurance as a fail-safe to protect them from unforeseen events.
James Martin, insurance expert at Finder, said Australia was dealing with record inflation, and car prices are no exception.
“Car insurance premiums go up for many reasons from higher parts and repair costs, to increasing crime rates and even natural disasters,” he said.
“It’s also costing more for insurers to process claims. This is one reason why the rising cost of living is impacting your premium.
“It means you could see your premium rise despite no change in driving habits or claims being made.”
The research found price was the most important factor Australians look for when choosing car insurance.
Other determining factors include comprehensiveness and brand recognition.
Meanwhile, Finder’s Consumer Sentiment Tracker found one-in-10 Australians listed car insurance as one of the top three bills causing them the most stress in the last year.
But Mr Martin said despite the price hikes, there were ways to reduce your car insurance premium.
“Opting for a higher excess will reduce your premium – sometimes by a few hundred dollars – but you’ll need to pay more upfront if you need to make a claim,” he said.
“You could remove cover for under-25 drivers, if you’re sure no younger drivers will have to use your car.
“You could avoid making claims for small scratches and minor dents as this can increase your premium each time you make a claim.”
He also urged drivers to look for discounts like sign up offers, and to always review their policy at least every 12 months.
“Remember, loyalty doesn’t pay – the best value policy today might be more expensive when it renews next year,” he said.
“You could save hundreds by switching providers.”
It comes as the Reserve Bank of Australia this week raised the official cash rate for the tenth consecutive time, taking it to 3.6 per cent and squeezing already stretched household budgets even further.
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