Rising living costs are prompting significant changes in how Australian vehicle owners approach maintenance and insurance, according to a new report from automotive services provider mycar Tyre & Auto. The company’s inaugural Mobility Index surveyed 2,004 vehicle owners and found that 60% have modified their maintenance routines due to financial pressures. Of these, 77% have taken on some car maintenance tasks themselves, with 17% overseeing complex tasks like brake pad replacements despite potential risks.
The survey highlighted that nearly 24% of respondents are extending the time between regular maintenance services, while 21% are opting for more affordable repairs when possible. Financial strain is also affecting insurance decisions, with 49% of vehicle owners adjusting their coverage. Notably, 11% have dropped their insurance altogether, and 27% have switched to less expensive policies. Additionally, 14% of drivers reported difficulties in making insurance payments due to increasing living costs.
A separate study by Youi Insurance found generational differences in how Australians manage car care and insurance expenses. The survey of over 2,000 respondents revealed that older generations are more cautious with spending, while younger generations, especially Gen Z, are more diligent in vehicle maintenance and more likely to modify their vehicles. In terms of insurance, nearly 80% of Australians hold comprehensive coverage, with older generations leading in both coverage levels and satisfaction with providers.
The Mobility Index also explored attitudes toward electric vehicles (EVs), revealing that economic concerns are making EVs more attractive for some drivers. While 88% of respondents still use petrol or diesel vehicles, 40% of current internal combustion engine vehicle owners cited potential fuel savings as a reason for considering an EV for their next purchase. Among current EV owners, 82% reported being satisfied with their vehicle’s reliability.
The report also examined drivers’ perspectives on emerging automotive technologies. Around 44% expressed concerns about autonomous driving, and many voiced apprehensions about other innovations such as in-car data collection and biometric recognition. Despite widespread technology use in vehicles, 88% of respondents reported seeing other drivers distracted by in-car systems, though only 24% admitted to being distracted themselves.
Industry experts emphasize the need for education on EV benefits and preparation for future demands. Stuart Charity, CEO of the Australian Automotive Aftermarket Association, stressed that government and industry must work together to make the switch to EVs seamless and maintain consumer trust. The report suggests that both government and industry will need to develop strategies to address evolving challenges, with 27% of respondents believing more government policies are required to support sustainable transportation.
