Why do car insurance premiums change?
We want you to feel informed about the reasons behind changes to your Car Insurance premium. That’s why we’ve broken down some of the common factors that affect pricing and how you can consider checking if the coverage is right for you.
What impacts premium?
The below general information is relevant to Apia car (including comprehensive; fire, theft and third party property damage; third party property damage), motorcycle, caravan and motorhome insurance, unless otherwise stated. Please refer to your relevant policy documents for more detail.
Many factors can impact the amount of premium that we charge our customers, some key matters are set out below. In addition to change in circumstances impacting your cover, premiums are also impacted by changes in our pricing practice, pricing factors and how we calculate premium from time to time.
The amount your vehicle is insured for affects your premium. For example, luxury cars can have higher premiums as they cost more to replace as opposed to a less expensive car in the event of a total loss.
The type of vehicle you have has a significant impact on your premium. This is because the cost of replacement parts vary depending on the make and model of vehicle you have.
The place where your vehicle is kept can impact your premium. Generally, a higher population density in an area means more traffic and therefore a higher chance of an incident occurring. Certain areas with higher risk of theft, vandalism and other similar incidents will also affect the premium.
A drivers age and experience can affect the likelihood of having an accident or claim. Generally, more experienced drivers have fewer accidents.
Excess is the amount you ordinarily have to pay for each incident when you make a claim. If you choose a higher excess, you may be out of pocket more when making a claim. A higher excess reduces our claims cost meaning we can reduce your premium. Higher excess means a lower premium, lower excess means a higher premium. Changes to excess not applicable to all covers.
After we have calculated the amount to cover your insurance policy, any applicable stamp duty, GST, charge and levy is then applied. Government taxes and charges may change from time to time.
How can I review my premium?
The below general information is relevant to Apia car (including comprehensive; fire, theft and third party property damage; third party property damage), motorcycle, caravan and motorhome insurance, unless otherwise stated. Please refer to your relevant policy documents for more detail.
Review your policies to make sure all details are correct. Some changes can impact your premium if they affect the premium factors. Below are some ways you can influence how much premium you pay under our suite of motor products. When reviewing your policy, you should always consider your own personal circumstances and check whether your policy suits your own needs.
By increasing your excess it will lower your premium. However, decreasing your excess will mean you will pay a higher premium. Changes to excess not applicable to all covers.
The amount we insure your vehicle for will also impact your premium. When reviewing your amount covered, it’s important to ensure the level is sufficient for your situation.
A number of other factors can impact your premium, including;
- What you use your vehicle for? For example, your premium will generally be lower if you use your vehicle for private use compared to business use.
- Who drives your vehicle? Age and driving experience of listed drivers can impact your premium.
- How many kilometres you travel each year? The more you are on the road, the more chances there are of having an accident therefore your premium will be impacted by how far you travel each year.
If any of the details have changed it’s important to contact us to ensure you have the right level of cover and appropriate premium.
Discounts are also a factor that can affect your premium. The premium you pay for your insurance includes any discounts we have given you. Any discounts are usually calculated and applied before the application of government taxes and charges.
Please refer to 'Ways to Save' for detailed information about discounts and savings available.
You should check your relevant policy documentation for information on discounts. To make changes to your policy, log in online to your account or give us a call on 13 50 50.
Apia's Online Services are not available, or not fully available, for all of Apia branded products, policy types or claim types. See Apia's Online Terms for further information
Disclaimers:
- The information is intended to be of general nature only. Subject to any rights you may have under any law, we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon the information. Please make your own enquiries.
- The information provided is accurate and true as of 7th September 2023, noting we may change our pricing practice (and the premium factors) from time to time.
Australian Pensioners Insurance Agency Pty Limited ABN 14 099 650 996 is an authorised representative of AAI Limited ABN 48 005 297 807, the product issuer for Apia comprehensive; fire, theft and third party property damage; third party property damage, motorcycle, caravan and motorhome insurance. Read the Product Disclosure Statement before buying this insurance. Go to apia.com.au for a copy. This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it. Various products and services are provided by different entities of the Suncorp Group. The different entities of the Suncorp Group are not responsible for, or liable in respect of, products or services provided by other entities of the Suncorp Group.
