Complaints to the dispute resolution authority about comprehensive motor vehicle insurance rose 21% in the year to June. 

The surge meant car cover overtook home building cover as the most disputed insurance product. 

The Australian Financial Complaints Authority revealed the shift as it announced all general insurance complaints were up 4% to a record total of 29,096 for the year.  

Claim delays led to one-third of vehicle insurance complaints, and remained the top issue in general insurance overall.  

“We are disappointed the sector has not yet been able to achieve sustained improvement,” chief ombudsman David Locke said. “These record numbers are still too high. Firms could be resolving more complaints themselves, or preventing them in the first place. It’s in everyone’s interests.” 

The latest rise comes after general insurance cases jumped 50% the previous year to a then record number. 

All AFCA complaints were up 9% to a record total of 105,454 in the year to June, after an unprecedented 34% jump a year earlier. 

Banking and finance complaints rose 11% to a record 59,636, with scam-related disputes up 81% to 10,951. Unauthorised transactions were the most common issue.  

Full data will be available later this year.