What's an insurance premium and how is it calculated?

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.