Key facts
- Australia's corporate regulator, Asic, advises car owners to challenge insurers on price hikes.
- Asic cites a lack of transparency in how insurers calculate and communicate prices.
- Many customers who questioned insurers received lower premiums.
- These lower premiums were often obtained without policy changes.
The Australian Securities and Investments Commission (Asic) is encouraging car owners to actively challenge their insurance providers regarding substantial premium increases. Asic has highlighted concerns about the transparency surrounding the methods insurers use to calculate and communicate these price adjustments. The regulator's advice stems from observations that numerous customers who have questioned their insurers about premium hikes have subsequently secured lower rates. In many instances, these reductions were achieved without any modifications to the customers' existing policies, suggesting that initial pricing may not have been optimized. Asic's guidance aims to empower consumers to seek clearer explanations and potentially fairer pricing from their auto insurers.