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Where do car premiums go?

We understand that changes to your premium can be confusing. As a guide we have broken down where insurance premiums go, because it’s important to us that you know where your money is going.

Claims 64%

Naturally, you'd expect one of the largest parts of the premium collected are used to help payout claims. Claims are an important part of what we do to help protect what matters to you.

Government Taxes & Charges 16%

A part of the premium goes towards government taxes and charges. After we have calculated the amount to cover your insurance policy, any applicable stamp duty, GST, charge and levy are then applied.

Reinsurance 2%

A part of the premium collected goes towards paying our insurance premium to reinsurance providers. We purchase additional cover of reinsurance to protect against the exposure to large scale events such as storms, floods and cyclones. This helps us maintain our ability to payout claims.

Profit 3%

Like any business, we need to make a profit to ensure we can continue running our business year after year. Our profit can vary significantly from year to year depending on whether there were large scale events like storms, floods and cyclones.

Expenses 15%

Every business has operating costs that enable them to continue their operations and service their customers. That's why a percentage of the insurance premium goes towards the operating cost of running our business. We also invest in the technologies and products that would improve the services we provide to you.

What data did we use?

  • The information above is based on data aggregated across all AAI Motor Policies and is calculated based on the period from 1 July 2016 to 30 June 2018.  The data may vary from time to time, depending on the measurement period.
  • AAI Motor Policies mean comprehensive, fire, theft and third party property damage, third party property damage, motorcycle, caravan and motor home policies of all the AAI Brands, issued by AAI Limited and includes policies with all types of optional covers. It does not include boat insurance or motor cover sold under a business policy.
  • AAI Brands mean AAMI, GIO, Suncorp, Apia, Shannons, Bingle Insurance, CIL Insurance, Vero, InsureMyRide, Just Car Insurance and Essentials by AAI.
  • Percentages are rounded to the nearest whole number.
  • This information is intended to be of a general nature and for information purposes only. ‘Where premiums go’ may differ and may change from time to time. We do not accept any legal responsibility for any loss incurred as a result of reliance upon it – please make your own enquiries.

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.

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.

Disclaimers:

This information is intended to be of a general nature and for information purposes only.  What your premium goes towards may differ and may change from time to time.  We do not accept any legal responsibility for any loss incurred as a result of reliance upon it – please make your own enquiries.

The information provided is accurate and true as of 1st May 2019, 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.