Car Insurance prices explained

Have you noticed your car insurance renewal price can fluctuate from year to year? You may wonder why – and you may also wonder what you can do about it.

Some of the factors involved in calculating your premium may be outside your control. But understanding how renewal premiums are calculated can offer you some clarity, and may allow you to take some control over them.

Renew your policy

Why are Car Insurance prices increasing?

There’s some complex maths behind renewal pricing with many variables involved. So, identifying one reason for a change can be a challenge. But here are a few key factors:

Supply limitations

Global supply limitations persist across the motor industry, and insurance renewal prices tend to reflect this. Supply chains are under strain and sourcing parts for cars – both new and old – remains a challenge. It can also be difficult to schedule appointments with mechanics, and even find replacement cars for total loss claims.* All of this can have an impact on insurance premiums.

Severe weather

Weather events – such as hail, storms, floods and fires – are becoming more severe and unpredictable. Insurers like Suncorp Insurance expect to pay more each year for the cost of repairs as well as the support offered to allow people to repair and recover after these events. This effect can be seen in insurance premium prices.

How to take control when renewing your Car Insurance

Check that your policy details are up to date, and whether you have the appropriate cover in place for your circumstances and budget.

Car finance

Finished paying off the finance on your car? Make sure to update this on your policy as it will impact your premium.

Listed drivers

Any driver who drives your car regularly should be listed on your policy, but if, for example, your teenager no longer drives your car, removing them as a listed driver could lower your premium.

Distance driven

Driving more generally means you’ll be paying more for your insurance. If your circumstances have changed and you’re driving less – say, for example, if you’re working from home or you moved closer to the city and now take public transport – then updating these details on your policy could help lower your premium at renewal time.

Excess

You have the option to choose a higher voluntary excess on your Suncorp Comprehensive Car Insurance policy. This means you’ll pay a lower premium for your insurance policy, but you’ll be up for higher out-of-pocket costs in the form of an increased excess in the event of a claim – so consider whether this option suits you and your circumstances.

Amount covered

You can adjust the amount covered for your car, within a set range, on Suncorp Comprehensive Car Insurance and Third Party Property Damage with Fire & Theft policies.

Choosing to lower the amount covered will reduce your premium – but keep in mind that this figure is the most we will pay for your car in the event of a total loss claim. So, reducing it could leave you at risk of being underinsured. Consider whether this is suitable for you and your budget.

Optional covers

You might have added some optional covers on your policy – like Suncorp Roadside Assist or windscreen and window glass cover. Consider checking if you still need them. Removing these optional covers usually lowers your premium.

Claims Free Driver Rewards

By renewing your comprehensive policy with Suncorp Insurance, you could benefit from our Claims Free Driver Rewards. For each consecutive year you don’t make an excess payable claim, we will reward you with a percentage of the premium you paid as a credit on your next renewal. Claims Free Driver Rewards credit is determined using the status of claim(s) on your policy when we calculate your renewal premium.

This amount gets bigger over time - from 2.5% after your first year to 15% after 14 plus years of continuous Suncorp Comprehensive Car Insurance with no claims that affect your Claims Free Driver Rewards.

Learn more about ways to save on your Suncorp Car Insurance policy here.

Update and renew your policy

Read more:

• Can I renew my expired car insurance?
  
• Why you should check your amount covered at renewal time
• What may influence car insurance costs

*If you have Suncorp Comprehensive Car Insurance and your car is a total loss (which includes where your car is stolen and unrecovered after 14 days and we accept your claim for theft), and so long your car is less than 2 years old and you bought it as a new or an ex-demo model from a licensed motor dealer, we'll replace your car with a new one of the same or similar make and model.

Insurance issued by AAI Limited ABN 48 005 297 807 trading as Suncorp Insurance. Read the Product Disclosure Statement before buying this insurance. The Target Market Determination is also available.

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.