Mozo research finds insurers have hiked premiums despite car use declining during covid
- Nationally car insurance premium prices are up 2.15% year-on-year on average
- NSW (3.12%) and Victoria (3.01%) experienced the biggest annual price hikes
- On average men pay higher annual premiums ($987) than women ($902) with both increasing by approximately 2% year-on-year
- 18-24 year olds experienced the biggest price hikes (3.10%) taking their average annual premium to $1,327
- Mozo's research shows 80% of car insurance customers have not seen their premium decrease
- Since Covid began, three quarters of people surveyed (75%) have not contacted their car insurer to ask for a discount.
4 February 2021: Research by financial comparison site Mozo.com.au has revealed car insurers have hiked premiums across the country by 2.15% in 2020 despite motorists driving less due to Covid restrictions.
Mozo analysed comprehensive car insurance quote data for the same 10,010 unique customer scenarios in 2019 and 2020 to look at average annual prices across each state and age group.
The analysis reveals younger drivers have been the hardest hit with 18-24 year olds experiencing the biggest average price hikes with premiums increasing 3.10% from $1,287 to $1,327. It also found those aged 18 years or younger are paying the highest premiums on average at $1,712 up 0.73% year-on-year.
"With Covid restrictions impacting car use across Australia and many drivers spending months polishing their cars in their garages, it's hard to see how insurers can justify hiking car insurance premiums," says Mozo Director Kirsty Lamont.
Mozo's latest nationally representative research also found the vast majority (80%) of car insurance customers have not seen their premium decrease even though there is less traffic on the roads.
"With car insurers hitting the breaks on proactively providing premium relief to customers, if you are driving less and struggling with the cost of insurance it pays to contact your insurer and request a discount," Lamont says.
Since Covid began, three quarters (75%) of people Mozo surveyed have not contacted their car insurer to ask for a discount and 12% of people surveyed have had to cancel their car insurance to save money.
"Something as simple as comparing premiums and switching to the best value insurer you can find can significantly reduce your costs," says Lamont.
The latest findings come following Mozo's Pandemic Premiums: Mozo's Covid Car Insurance Report 2020 released earlier this year which found many Australians choose their insurer simply based on brand recognition or word of mouth even though average annual savings of up to $902 are available for comparable cover.
For data or interviews contact:
Tom Godfrey - 0477 486 095 - tom.godfrey@mozo.com.au
Notes on research - Mozo analysed comprehensive car insurance quote data for the same 10,010 unique customer scenarios in 2019 and 2020 to look at average annual prices across each state and age group. Mozo also conducted two nationally representative surveys, the first of 2,743 Australian motorists was conducted by Researchify between 23 August to 1 September 2020 while the second of 1,080 was conducted between 30 November to 10 December 2020.
About Mozo.com.au
Mozo compares more than 1,800 products from over 200 banking, insurance and energy providers to help thousands of Australians find a better deal each month via its award-winning comparison tools and calculators. Mozo's team of experts routinely provides financial commentary and advice for major news outlets in Australia.