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How to Manage Motor Vehicle Insurance Cost
Now’s the time to look at your motor vehicle insurance premium. The following applies to small truck, utes and sedans.
State & Territory breakdown
There are a number of factors contributing to premium increases over the past year. Victorian premiums at $2,940 had the highest average increase of 8.3%, followed by WA with 7.8% and NSW & QLD about 5.8%. Tasmanian motorists faced the lowest average premiums at $1,785 with a modest 4.4% increase.
What’s behind the increase?
- Parts costs: Modern cars come with more technology – from sensors to onboard computers – which makes repairs more complex and expensive. Even minor accidents or Windscreen crack can lead to major repair bills.
- Labour costs & inflation: increased costs of spare parts, also rising wages and extra time taken to repair vehicle tech has resulted in approximately 60% of the cost of a claim being labour costs.
- Hire car costs: The cost for insurers to provide rental cars has been increasing due to increased daily vehicle rates and delays in sourcing parts resulting in extended repair wait times.
- Rising fraud and legal expenses: insurance fraud cost insurers $560 Million in 2023, which is also a factor in the increase.
What can you do?
Talk to an Adroit Risk Adviser, there are lots of insurers with different types and levels of cover and excess options. Your insurance adviser is a professional that can tailor cover to meet your needs and budget.