Get answers to the most common questions we get asked

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Insurance is about protecting yourself from the unexpected. When you have belongings and property that are of value, you want to know that you are covered if they were damaged or lost. In Queensland, we are all too familiar with unpredictable weather and the impacts of cyclones, floods, storms and bushfires. But insurance also protects you against things like theft, damage and legal liability.

When you pay your insurance premium, it goes into a pool of money with everyone else’s premium. When people claim on their policy, that money comes out of the pool. In the event of a catastrophe e.g. large scale flooding or a cyclone, this pool of money goes to helping a lot of people recover. 

Insurance companies need insurance as well - this is reinsurance. In the event of a major catastrophe, sometimes the amount of money we pay to help customers recover from loss or damage takes a large portion out of our reserves. By insuring a percentage of those reserves, we make sure that we can recover some of the money we pay out to customers. That way we can continue to offer you a competitive premium. 

An insurance company can offer you a range of policies. You can use this information to purchase a policy from that insurance company.

Brokers are professional advisors who have access to insurance policies from a range of insurance companies. They can provide you with advice on which policy is best suited to you and they will purchase this policy from the insurance company on your behalf.

We offer a range of insurance policies  to protect you against loss or damage, including motor and household insurance.

We are a Queensland company and insure everywhere within the state as well as some areas of Northern New South Wales. When you get a quote, we ask for your postcode to check that you fall within that area.

Yes. RACQ introduced full flood cover in 2012. Our PDS defines flood as ‘…the covering of normally dry land by water that has escaped or been released from the confines of any of the following:

  •  a lake, river, creek or other natural watercourse (whether or not is as been altered or modified)
  •  a reservoir, canal or dam.’ 

A premium is the amount you pay to get insurance cover. It is the cost of your insurance. Your premium is based on a number of factors including your risk address, age, insurance history and the value of what you are insuring. In most cases, the higher the risk of loss or damage, the higher the insurance premium. The chance of loss or damage is different for everyone, so at RACQ we calculate your premium based on your individual circumstances.

When we talk about risk we are talking about the chances of an incident occurring that will cause damage or loss. All insurance companies calculate risk to determine a customer’s premium. It’s putting a financial value on the risk. 


When we assess and price risk, we are working out how much it would cost to replace and/or rebuild the insured item and the likelihood that this will occur in a period of insurance (1 year). For example, if you have a low-lying, single story house on a waterway your property could be considered a high flood risk. If you’re an inexperienced driver, you are at a high risk of being involved in an incident. While we take into account many other factors, both of these scenarios could result in a higher premium or additional excess.

This is when the amount you are insured for (on your Certificate of Insurance) is below what it would cost to replace or rebuild. 

According to the Insurance Council of Australia (ICA), your property is considered to be underinsured if your insured amount covers less than 90% of the cost to rebuild. For example, if you have your home insured for $200,000 but it will cost $300,000 to rebuild it, you may not receive enough money from your insurance company to rebuild. 

We have sum insured calculators accessible from our Household Insurance pages and online quote system to help you work out how much you should insure your property for.

Over insurance is when you insure your property for more than it is worth. This does not mean you will get the inflated value if you make a claim.  

In the event of a successful claim, you can be paid the replacement value of the property lost or damaged. For example, if you have insured your home for $300,000 when in fact it only costs $200,000 to rebuild, you may only receive $200,000 from your insurance company. 

We provide Sum Insured Calculators on our Household Insurance pages and within our quoting system to help you decide how much to insure you property for.

An excess is the amount you are required to pay towards a claim on your policy. When you take out a policy, we apply a standard excess. On most of our policies you can select your excess  from a range of options that can increase or decrease your premium. A higher excess will reduce your premium and cost you more at claim time. A lower excess will increase your premium but lower your costs at claim time. It’s entirely up to you. 

Some policies also have non-removable excesses. These are usually due to driving history, your age or licence level. Any excess that applies to your policy is shown on your Certificate of Insurance.

As a younger driver, you have less experience than other drivers on the road. Statistically, you are at a greater risk of having an accident. You may be liable to pay an additional excess on top of your policy’s basic excess. This additional excess, if applicable, will be listed on your quote as well as your Certificate of Insurance if you purchase the policy.

You should have received a Product Disclosure Statement (PDS), Certificate of Insurance and any Supplementary Product Disclosure Statements that apply. These documents tell you what you are and are not covered for, your excesses, limits and more. Read your documents to make sure you understand everything, and then put it somewhere safe in case you need to claim later. 

You have a 21 day cooling off period on your insurance which starts from the date and time we issue your policy, or midnight on your renewal date. You can cancel your policy within this time and any money you have paid will be refunded. If there is anything in your documents that you don’t understand or you feel is incorrect, call us on 13 1905.

Depending on your insurance type, there are several ways to easily make a claim. Go to our How to make a claim page for instructions.

Our friendly claims staff will walk you through the process and help you get back on track. Every situation is different so don’t hesitate to give us a call if you have questions about your particular claim. 


The Insurance Council of Australia has developed the Understanding Insurance website which is designed to help educate the community about insurance. 

If you're not already an RACQ member when you take out an RACQ insurance policy, you’ll automatically become an RACQ member. This means you'll be able to make the most of a great range of benefits. You can find out more by visiting RACQ Member Benefits.

Finding the right level of life insurance cover is different for everyone and depends on your own individual circumstances. Things to consider when deciding how much cover you need may include; what stage of life you are at, whether you have other people you are looking after, if you have any debt and the ongoing needs of your family and loved ones.

If you are a member of an Australian superannuation fund you might already have some life insurance cover.

However, typically default life insurance cover within a superannuation plan only provides some of the life insurance you actually need. It's important to find out what type of insurance you already have by either asking your superannuation fund or your employer. Then you'll know where you stand, and whether you need extra cover. One thing to note: Australian superannuation plans don't normally include serious or critical illness insurance.

Depending on the product you choose, your premium may be determined by your type and level of cover, age, gender, smoking status, the number of children covered and any discounts you may receive.

You may also be required to take out a level of cover sufficient to meet the minimum premium. The premium amount also includes government charges such as insurance duty and taxes.


Yes, if you are the Policy Owner then when you apply for Life Insurance or Accident Insurance you will be asked if you would like to nominate a beneficiary or beneficiaries for any death benefits under your policy. You can nominate up to five persons to receive your death benefit and the percentage of the benefit they each receive.

You don't need to have any medical examinations or blood tests to take out a Life and Income Protection Insurance policy with RACQ. However you may be asked some questions about your health and medical history.

You are covered as soon as we accept your application. This is known as your Policy Commencement Date and is shown on your Policy Schedule. We will send you a Policy Schedule, which will outline your accepted benefits, Sum Insured, Policy Commencement Date and each cover's Expiry Date. Some benefits may have qualifying periods. These are marked in the PDS. If you have a specific question, please give us a call.

Yes, you are covered 24 hours a day, 365 days a year when you travel. However you must be still be permanently residing in Australia at the time of the claim and when you receive the Product Disclosure Statement and Policy Document (PDS). You should read the PDS carefully as some exclusions and/or limitations may apply, for example if death or injury is caused by an act of war (whether declared or not).

Yes, your partner can apply and you can both enjoy a 5% joint policy discount when you both take out cover on the same policy.

You can choose to pay your premium fortnightly, monthly or annually either by credit card or direct debit – allowing you to pay you premium in the way that best suits you.

For whatever reason, you may change your mind about your policy. That's why there is a 30-day cooling-off period, where you can cancel your policy and receive a full refund.
To cancel your policy within the cooling-off period, please contact our life insurance consultants by emailing enquiries@lifeinsurance.racq.com.au, by calling 1800 722 777 or in writing to:

Member Services, RACQ’s Life and Income Protection Insurance
PO Box 4556
Eight Mile Plains QLD 4113

The cooling-off period starts from the earliest date of the date you receive your policy documents from us or the end of the fifth day after we send these documents to you. There's just one exception: the cooling-off period automatically ends if you make a claim.

You can decrease your cover (subject to the minimum Sum Insured or premium requirements) at any time by contacting us. You can apply to increase your cover (up to the maximum amount allowed for your age) at any time. To increase your cover you may need to answer some additional health and lifestyle questions.

AIA Australia Limited is an independent life insurance specialist with over 40 years of experience building successful partnerships. One of the country's leading life insurers, AIA Australia offers a range of products that protect the financial health and welfare of more than two and a half million Australians. AIA Australia is the country's largest group life insurer by market share and works closely with major financial institutions and corporate partners to provide life insurance solutions for their customers. In addition, AIA Australia offers retail insurance products through financial advisers and a valued network of affinity partners. By having a partnership philosophy at the core of its business, AIA Australia is focused on building genuine relationships and delivering real value to its business partners. Numerous industry awards over the past year, including the 2012 Smart Investor Life Insurer of the Year, 2012 and 2013 ANZIIF Life Company of the Year and 2012 Super Review / Heron Partnership Group Insurer of the Year, stand as testament to our commitment to building real partnerships.

AIA Australia is part of the AIA Group, a market leader in life insurance across the Asia Pacific region with over 90 years’ experience.


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Find out more

AIA Vitality’s proven approach takes you on a personal pathway to better health: you get to know your health, learn how to improve your health and enjoy the rewards for doing so.

Know your health
AIA Vitality offers a range of health assessments to help you find out more about your health. 

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AIA Vitality will help you get in shape and maintain good health through discounts on gym memberships, fitness devices and more.

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AIA Vitality keeps you motivated with ongoing rewards for all your effort, including discounts on flights, movie tickets, leading retail brand shopping vouchers, spa treatments and more. 

How do you get the benefits?
  1. Purchase one of RACQ’s Life and Income Protection Insurance products.
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To find out more about AIA Vitality, click here.

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