The Australian Securities and Investments Commission (ASIC) has fined Suncorp personal lines brand AAMI $20,400 for “false or misleading” car insurance adverts.

The TV and online ads, shown between July and September last year, included the claim AAMI Flexi-Premiums “could save you an average of $357 off your new policy”.

ASIC says the campaign gave the impression savings could be achieved if consumers switched their car insurance to AAMI. In fact, the savings were based on comparing AAMI premiums with different levels of excess.

The regulator says the ads “did not adequately convey that AAMI customers would need to choose the maximum level of excess in preference to the minimum level of excess to achieve the specified dollar savings”.

AAMI was aware most customers did not choose the maximum excess, ASIC says.

Fine print explained the details but the regulator considered this ineffective.

ASIC Deputy Chairman Peter Kell says advertised savings must be “reasonably achievable” and properly explained.

“In this case, the fine print text disclaimer that attempted to explain the savings was so obscure it was almost impossible for viewers to understand the underlying reality of the advertised claims,” he said.

An AAMI spokesman told insuranceNEWS.com.au it changed the ads “to adjust any messaging that could be misconstrued” after possible issues were raised.

“ASIC contacted us regarding the ads and decided to levy fines over two of the advertisements that had previously aired in their original form,” he said. “The Flexi-Premium advertising campaign has now concluded and the ASIC fines have been paid.”