Car insurance is rising far faster than inflation. What’s driving the jump?

in brief Car insurance premiums are rising far faster than inflation, leaving drivers to shoulder steep increases. ASIC says customers are not getting enough information from insurers. Drivers could be paying hundreds of dollars more for car insurance without knowing why their premiums have jumped so sharply, as insurers offer little transparency about the forces driving costs higher. Car insurance premiums rose 8 per cent in the 12 months to July 2025, more than twice the 3 per cent increase in the broader consumer price index, putting pressure on household budgets even as overall inflation has eased. ASIC called on insurers to improve renewal and quote documents to make information about premiums clearer, more useful and easier to compare.