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.
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.
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.
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.
Taylor Blackburn, personal finance and insurance specialist at Finder, said there was a worrying number of uninsured vehicles on Australian roads.
"Australians are looking for ways to cut spending, and car insurance is one area where some are scaling back.
"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."
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.
Not all drivers are cutting back – 10% said they had switched providers to secure a better deal while maintaining the same level of cover.
Blackburn warned that driving without sufficient insurance carries real financial risks.
"An at-fault accident could result in substantial out-of-pocket costs, particularly if multiple vehicles are involved.
"It's crucial for drivers to carefully consider their options before cancelling their cover entirely."
Blackburn said the best way to save on car insurance whilst keeping your level of cover is to shop around.
"Remember the best deals go to new customers. If you haven't checked in the last 2 years, you're probably paying too much."
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.
Have you ditched your car insurance in the past 12 months because it was too expensive?
| 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 |  |
Credits
- PR team: Taylor Blackburn, Kate Boddington, Natascha Kwiet-Evans, Jamie Hersch
- Insights research team: Graham Cooke, William Capada, Karen Manalaysay
- Survey operation: Qualtrics
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