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.
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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.
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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.
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A further 7% had no extra insurance above compulsory-third-party to begin with.
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The data shows just 1 in 10 (10%) switched to a better deal for the same level of car insurance.
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Tim Bennett, insurance expert at Finder, said many individuals are discontinuing their car insurance in response to current financial pressures.
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"While understandable, this decision leaves drivers significantly exposed to potential financial hardship should an accident, theft, or natural disaster occur.
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"Operating a vehicle without insurance carries substantial financial risk. An at-fault accident can result in considerable expenses."
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Finder's Consumer Sentiment Tracker revealed over 1 in 10 (12%) say their car insurance is one of their top most stressful bills.
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Aussies report spending $138 per month – $1,656 per year – on their car insurance on average.
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Bennett said before cancelling insurance outright, consider shopping around for a better deal.
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"Comparing available policies can help you save hundreds, if not thousands, on a policy.
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"There is no downside to comparing and switching providers.
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"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."
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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 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 |  |
Sources
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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