Australian drivers are changing how they maintain and insure their vehicles as cost-of-living pressures weigh on household budgets, with potential consequences for risk exposure and claims outcomes, according to recent survey data. Research from Canstar.com.au shows that 57% of 2,705 car owners surveyed had postponed, reduced, or cancelled at least one car-related expense in the past 12 months due to financial strain. The most common action was delaying or skipping a scheduled service, reported by 49% of respondents.
Other measures included postponing the purchase of a new vehicle (28%), delaying or avoiding repairs for minor damage such as cracked windscreens and dents (25%), and putting off maintenance items like new tyres and brake pads (25%). In terms of cover, 21% said they had reduced or cancelled non-compulsory motor insurance. Canstar’s data also points to changes in broader ownership and support arrangements: 17% cancelled plans to buy a new car, 11% reduced or cancelled roadside assistance, and 5% sold a primary or additional vehicle without replacing it.
The survey results suggest cost-cutting is more concentrated among younger drivers. According to the research, 69% of Gen Z and 67% of Millennials had deferred or trimmed car expenses, compared with 60% of Gen X and 42% of Baby Boomers. By state and territory, Victoria and Western Australia recorded the highest share of motorists cutting back, with 60% in each state reporting reduced car spending in the past year. The figure was 57% in New South Wales, 54% in Queensland, and 56% in South Australia. In Tasmania, 59% reported changes, while the ACT recorded 49%. Northern Territory results were excluded because of a small sample size. For insurers, intermediaries, and underwriters, these patterns indicate that behaviour changes are not uniform across the market, with particular cohorts more likely to defer servicing, repairs, or insurance spending.
Canstar.com.au data insights director Sally Tindall said the trend toward delaying maintenance intersects with insurers’ expectations regarding vehicle condition. “When it comes to your car, safety has to be the number one priority, well above saving money, so servicing and maintenance has to be on the list of non-negotiables. Delaying a scheduled service when your car seems perfectly fine might seem innocuous, but those regular check-ups can help identify safety issues and potentially prevent much bigger, more expensive costs down the track. Regular servicing can also extend the lifespan of your car and boost its resale value,” Tindall said.
Tindall noted that motorists with comprehensive policies are generally expected to keep their vehicles in a roadworthy state. “When you take out comprehensive insurance, the insurer expects you to keep your car in a roadworthy condition. This means replacing worn tyres and brakes, fixing defective lights, addressing rust, and resolving any mechanical or electrical issues. If it’s not, then your provider could potentially deny your claim if it contributed to the accident,” she said.
While some drivers are reducing coverage levels or cancelling policies, others are focusing on managing premiums through price comparison and switching. “Shopping around for car insurance every time it comes up for renewal should also be non-negotiable. Auto-renewing saves time, but it could see your loyalty being taken for a ride. Instead, use your renewal notice as your reminder to shop around to get at least two additional new customer quotes,” Tindall said. Beyond changes to insurance cover, the Canstar survey indicates that motorists are adopting a range of cost-control tactics, including reducing budgets for new-car purchases, switching to cheaper fuel grades or driving less, and making greater use of discounts available through memberships or insurer-affiliated programs. Many also report using fuel price apps to identify lower-cost petrol stations.
Separate research from mycar Tyre & Auto’s 2024 Mobility Index points to similar behaviour across vehicle owners. Based on a survey of 2,004 car or vehicle owners, mycar reported that 60% had changed their vehicle maintenance habits in response to cost-of-living pressures, and 77% were performing some form of maintenance themselves. Almost one in four (24%) said they were extending the intervals between regular services, while 21% reported choosing lower-cost servicing or repair options where available. Insurance arrangements are also being adjusted. According to the mycar research, 49% of vehicle owners changed their level of cover, with 11% dropping insurance entirely and 27% moving to cheaper policies while maintaining some degree of protection. Fourteen percent said they had missed or struggled to make a vehicle insurance payment because of rising costs.
The survey additionally found that 17% of respondents were undertaking more complex work themselves, such as brake pad replacement or brake system maintenance. For insurers and repair networks, this may raise questions about repair quality and potential safety implications where work is not carried out to professional standards. For underwriters, claims managers, and brokers, the combined findings from Canstar and mycar suggest that economic conditions are influencing service intervals, repair decisions, insurance coverage levels, and payment behaviour. These shifts may flow through to claim frequency and severity, potential disputes over vehicle condition at the time of loss, and the prevalence of underinsurance across personal motor portfolios.
