Throwing caution to the windshield: 2 million motorists ditch or downgrade car insurance
A growing number of Aussies are ditching or downgrading their car insurance policies, according to new research by Finder.
A Finder survey of 910 respondents with a car revealed 12% – equivalent to 2.2 million people – have ditched or downgraded their car insurance in the past 12 months due to it being too expensive.
The research found 5% ditched their car insurance policy altogether admitting it was too pricey, and 7% downgraded to a lower level of car insurance.
A further 7% had no extra insurance above compulsory-third-party to begin with.
The data shows just 1 in 10 (10%) switched to a better deal for the same level of car insurance.
Tim Bennett, insurance expert at Finder, said many individuals are discontinuing their car insurance in response to current financial pressures.
"While understandable, this decision leaves drivers significantly exposed to potential financial hardship should an accident, theft, or natural disaster occur.
"Operating a vehicle without insurance carries substantial financial risk. An at-fault accident can result in considerable expenses."
Finder's Consumer Sentiment Tracker revealed over 1 in 10 (12%) say their car insurance is one of their top most stressful bills.
Aussies report spending $138 per month – $1,656 per year – on their car insurance on average.
Bennett said before cancelling insurance outright, consider shopping around for a better deal.
"Comparing available policies can help you save hundreds, if not thousands, on a policy.
"There is no downside to comparing and switching providers.
"The best deals often go to new customers so if you haven't looked in the last 12 months, you're probably paying too much."
Have you ditched your car insurance in the past 12 months because it was too expensive?
| Yes, I switched to a better deal for the same level of car insurance | 10% |
| Yes, I have downgraded to a lower level of car insurance (e.g. downgraded to third-party insurance only) | 7% |
| Yes, I've ditched my car insurance | 5% |
| No, my car had no extra insurance (above compulsory insurance) in the first place | 7% |
| No | 71% |
| Source: Finder survey of 910 respondents with a car, February 2025 |  |
Methodology
- Finder's Consumer Sentiment Tracker is a monthly recurring nationally representative survey of more than 60,000 respondents.
- Figures in this release are based on 910 respondents with a car from February 2025.
- The Consumer Sentiment Tracker is owned by Finder and operated by Qualtrics.
- The survey has been running monthly since May 2019.
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