A review of motor premium disclosure practices has found no insurers detailed “key factors” driving up prices in quote and renewal documents, the corporate regulator says.

While all five companies reviewed displayed premium amounts prominently, most charged policyholders more for paying monthly instead of annually, and they did not clearly state the difference in total cost at renewal, according to the Australian Securities and Investments Commission.

The commission examined eight brands under Suncorp, Allianz, IAG, RAC Insurance and Youi that represent 72% of the domestic motor insurance market. It released its findings today.

ASIC commissioner Alan Kirkland says unclear information makes it harder for consumers to compare products, question price increases or take steps to reduce premiums.

“Consumers should not have to guess why premiums have changed,” he said. “If an insurer has increased a premium, consumers should be able to understand what is different.”

The commission announced the probe last year after a surge in motor insurance disputes, especially over premium increases.

The review found motor premiums increased 8% over the 2024-25 financial year, after rises of more than 42% from 2019 to 2024.

“Such price growth places significant pressure on household budgets. It is not surprising that recent years have also seen an increase in complaints about [motor insurance], especially in relation to premiums,” ASIC said.

The Insurance Council of Australia says the industry is exploring options to explain premiums more clearly to customers.

“Insurers recognise the need to support customers to understand what they are paying and why, and welcome ASIC’s focus on premium communications,” an ICA spokesperson said.

“This is a highly competitive market, and we encourage every customer to talk to their insurer and shop around at renewal.”

ASIC-commissioned consumer research found some customers feel “a sense of powerlessness” in response to rising prices, the corporate regulator says.

Only 30% of consumer respondents contacted their insurers about their renewals. Of those, about 31% had their premiums reduced without changes to policy settings.

“That finding shows it pays to ask, with some consumers who challenged their premium increase ending up with a better deal,” Mr Kirkland said.

“The problem is that not everyone has the time, confidence or capability to negotiate with their insurer, and many may not even know that this is possible.”

Consumer groups say the ASIC report reveals widespread failures to clearly explain rising motor cover premiums.

“This report makes it clear that consumers are being left in the dark about some of the most important information affecting the cost of their car insurance,” Financial Rights Legal Centre principal for external relations and advocacy Julia Davis said.

Click here to read the full report.