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ICA Unveils Strategy to Combat Rising Motor Insurance Costs

Addressing Systemic Factors Behind Premium Increases

ICA Unveils Strategy to Combat Rising Motor Insurance Costs?w=400

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The Insurance Council of Australia (ICA) has released a comprehensive report titled "Motor Insurance Policy Paper – A Roadmap for Reducing Rising Premiums," calling for urgent and coordinated action to address the systemic cost drivers behind escalating motor insurance premiums.
The report highlights that comprehensive motor insurance premiums have increased by 42% since 2019, reaching an average of $1,052 per year in 2024.

Key factors contributing to this rise include a 42% increase in average claims costs between 2019 and 2024, driven by higher expenses for vehicle replacement, parts, and labour. Additionally, repair costs have climbed 26% since 2022 due to rising wages, more expensive spare parts, and longer repair times.

The ICA's roadmap emphasizes the need for collaborative efforts among insurers, repairers, and policymakers to implement strategies that can mitigate these cost drivers. Proposed measures include investing in advanced repair technologies, streamlining claims processes, and promoting the use of standardized parts to reduce expenses.

For real estate professionals who rely on motor vehicles for property inspections, client meetings, and other business activities, these rising insurance costs can impact operational budgets. Staying informed about industry developments and exploring insurance options tailored to their specific needs can help mitigate the financial impact of increasing premiums.

Published:Thursday, 12th Mar 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

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Knowledgebase
Professional indemnity:
An insurance that provides cover for liability incurred in the course of exercising a profession.