15% of drivers slash insurance as cost-of-living crisis bites: how to keep cover
Key takeaways
- New Finder research has revealed that 3.2 million Aussie drivers have lowered or ditched their car insurance policy in the last 12 months.
- More than a quarter (27%) of Aussies named fuel as one of their top 3 most stressful expenses, up from 11% in January.
- What's next: Rather than abandon cover, one of the easiest ways drivers can hang onto cover is to switch to a more competitive offer.
Between chaotic fuel prices to unmanageable cost of living demands, Aussies are considering all paths necessary to keep spending to a minimum.
And according to recent Finder research, car insurance has landed itself on the chopping block.
The data found 10% of drivers have downgraded to a lower level of cover, like third-party insurance, within the last 12 months.
A shocking 5% of drivers have chosen to cancel their cover altogether, which can land them in hot water while on the road.
"While it may offer short-term savings, going without adequate cover can leave drivers financially at risk in the event of an accident, theft or severe weather damage," said personal finance and insurance specialist at Finder Taylor Blackburn.
The data also revealed only 3% of respondents said they had no insurance beyond compulsory cover, which also carries a degree of risk.
"An at-fault accident could result in substantial out-of-pocket costs, particularly if multiple vehicles are involved," explained Blackburn.
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How Aussies can stay protected without sacrificing comprehensive cover
Rather than ditch cover, 10% of drivers revealed they had switched insurers and secured a better deal while maintaining the same level of cover.
"Remember the best deals go to new customers. If you haven't checked in the last 2 years, you're probably paying too much," said Blackburn.
If you're evaluating your cover options, shopping around on current car insurance offers could allow you to keep the same level of cover, without the hefty premium.
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