Short answer: Don't just accept the renewal notice. Check what changed, compare the same level of cover elsewhere, and call your insurer. ASIC found 31% of people who contacted their car insurer got a lower premium without changing their cover — but 68% never ask. If you do switch, start the new policy before the old one ends so you are never uninsured.
If your renewal felt like a jump, you are not imagining it. Moneysmart reports car insurance premiums rose 8% in the twelve months to July 2025, and ASIC found premiums grew more than 42% between 2019 and 2024. An ASIC survey cited by Moneysmart found 74% of people who received a renewal notice were quoted a higher premium than the year before.
Home insurance is similar. A September 2026 review of home insurance renewal notices by CHOICE and the Financial Rights Legal Centre found most increases were around 10% to 20%.
A few things push a renewal price up that are easy to miss:
What you usually won't get is a personal explanation. ASIC found none of the car insurers it reviewed explained the key factors behind the premium in their quote and renewal documents.
Two sets of rules apply to renewals of general insurance like car and home cover:
In practice, that explanation is thin. The Financial Rights Legal Centre reports the explanation has only ever been used to separate taxes and state levies from the base premium, and its September 2026 review with CHOICE found three in four home renewal notices gave no reason for the increase at all. The Code itself is being rewritten in 2026, so these provisions may change.
The practical takeaway: find last year's premium on the notice — it is not always on the first page — and work out the increase yourself before you decide anything.
A cheaper quote is only cheaper if it buys the same thing. Moneysmart's checklist for comparing:
The spread can be large. CHOICE found quotes for a single address in McGraths Hill, NSW, ranging from $1,940 to $36,650.
Get one or two comparable quotes first, then call. The questions below follow Moneysmart's suggestions.
You: "Hi, my renewal has gone up from $[last year] to $[this year]. Before I decide whether to renew, can you explain what changed?"
You: "I've been quoted $[quote] for the same cover, excess and sum insured with another insurer. Can you match that?"
You: "Am I getting every discount I'm eligible for — multi-policy, no claim bonus, loyalty?"
You: "What would the premium be with a higher excess? And how much would I save paying annually instead of monthly?"
You: "Thanks. I'll think it over. Can you note the offer on my file?"
Two levers are worth checking even if the insurer won't budge. ASIC found paying by instalments can cost 10–20% more than paying annually with many insurers. And raising your excess usually lowers the premium — but only choose an excess you could actually pay if you needed to claim.
Most people stay put: ASIC found 67% renewed the same type of policy with the same insurer, and 40% didn't contact their insurer or compare quotes first. Switching is worth considering when:
CHOICE also observes that cheaper premiums are often offered to new customers or people who threaten to leave, which is why the phone call above is worth making either way.
If you think your insurer has done the wrong thing, complain to it in writing first. If that doesn't fix it, the Australian Financial Complaints Authority (AFCA) hears complaints for free — call 1800 931 678.
Renewals are easy to miss when they auto-debit. MyPelican's Bill Increase Alerts detect when an insurance premium or subscription quietly increases, so you can review it before it renews again. Learn more about MyPelican.
Premiums are repriced at every renewal, and rises have been widespread: Moneysmart reports car insurance premiums rose 8% in the twelve months to July 2025, and ASIC found premiums grew more than 42% between 2019 and 2024. Introductory discounts, such as online discounts, are usually for the first period of insurance only. ASIC also found that none of the insurers it reviewed explained the key factors behind the price in quote and renewal documents.
Under section 58 of the Insurance Contracts Act 1984, your insurer must give you written notice at least 14 days before renewable cover expires, saying when it expires and whether the insurer is prepared to renew. Clause 50 of the General Insurance Code of Practice requires a comparison between this year's and last year's premium, and an explanation of how the premium was calculated. The Code is being rewritten in 2026.
Often, yes. ASIC found 31% of people who contacted their car insurer had their premium reduced without any change to their cover, yet 68% never contact their insurer. Moneysmart suggests asking whether the insurer can match a competitor's quote, whether you are getting every discount you are eligible for, and whether a different excess would be cheaper.
With many insurers, yes. ASIC found paying by instalments instead of annually can cost 10 to 20% more over the year, and 54% of consumers did not know this or missed it in the fine print.
This guide is general information about insurance renewals, not personal financial or legal advice. It does not recommend any insurer or product — consider the PDS and your own circumstances before making a decision. Rules and figures can change — ASIC, Moneysmart and AFCA are the authoritative sources. Details were current at the time of writing.
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