3.2 million Australians cut back or go without car insurance as fuel stress soars
Key takeaways
- 5% of Aussies say they have cancelled their cover entirely.
- More than 1 in 4 list petrol as one of their most stressful expenses.
- Finder is giving away a share of $1,000 in fuel vouchers.
Millions of Australians are downgrading or cancelling their car insurance altogether as cost-of-living pressures reignite, according to new research by Finder.
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A Finder survey of 1,011 respondents revealed 15% of Australians – equivalent to 3.2 million people – have lowered or ditched their car insurance policy over the past 12 months as premiums and the cost of living soar.
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The research shows 5% of Australians have cancelled their policies entirely, while a further 10% have downgraded to a lower level of cover, such as switching to third-party insurance only.
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This comes as more than a quarter (27%) of Aussies currently list petrol as one of their top 3 most stressful expenses. That's up from just 11% in January.
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Taylor Blackburn, personal finance and insurance specialist at Finder, said there was a worrying number of uninsured vehicles on Australian roads.
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"Australians are looking for ways to cut spending, and car insurance is one area where some are scaling back.
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"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."
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Finder's research found 3% of respondents said they had no insurance beyond compulsory cover to begin with, highlighting a persistent gap in protection among drivers.
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Not all drivers are cutting back – 10% said they had switched providers to secure a better deal while maintaining the same level of cover.
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Blackburn warned that driving without sufficient insurance carries real financial risks.
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"An at-fault accident could result in substantial out-of-pocket costs, particularly if multiple vehicles are involved.
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"It's crucial for drivers to carefully consider their options before cancelling their cover entirely."
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Blackburn said the best way to save on car insurance whilst keeping your level of cover is to shop around.
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"Remember the best deals go to new customers. If you haven't checked in the last 2 years, you're probably paying too much."
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Finder is providing fuel relief for four lucky winners. Follow Finder on Instagram and enter the draw for a chance to win a share of $1,000 in fuel vouchers.
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Have you ditched your car insurance in the past 12 months because it was too expensive?
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| Yes, I've ditched my car insurance | 5% |
| Yes, I have downgraded to a lower level of car insurance (e.g. downgraded to third–party insurance only) | 10% |
| No, my car had no extra insurance (above compulsory insurance) in the first place | 3% |
| Yes, I switched to a better deal for the same level of car insurance | 10% |
| No, I don't have a car | 10% |
| No | 61% |
| Source: Finder survey of 1,011 respondents, February 2026 |  |
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Credits
- PR & Insights research team: Taylor Blackburn, Kate Boddington, Natascha Kwiet-Evans, William Capada
- Survey operation: Qualtrics
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