An insurance premium is the total amount you pay to insure your belongings for your chosen level of cover. It is calculated by applying a range of factors that are unique to your individual policy. Even if your individual circumstances have not changed, your premium is likely to change every year.
Ever wondered how your insurance premium is calculated? You’re not alone. We are often asked by members what factors contribute to the price of their insurance cover, so we’ve put together some information to help illustrate how your insurance premiums are calculated.
Your individual circumstances
Details of the item/s insured
^At your policy renewal, we automatically increase your home sum insured to help protect you against the effects of increasing costs and inflation. You can ask us to increase or decrease your home sum insured at any time and it is important to check that your sum insured is adequate and that you are not over or under-insured. Tools such as the building insurance and contents insurance calculators on our Insurance page can help you estimate what it would cost to replace your home building or contents.
External factors and market forces
Private vs Business use
RACQ, like other insurers, adjusts prices from time to time due to the range of factors that impact how your premium is calculated.
We are experiencing an increase in the cost of building claims and reinsurance costs due to the volatility and unpredictability of Queensland weather, particularly in relation to hail events. Premium increases help ensure the protection we offer our members can be sustainably provided both now and into the future, where any change in the climate remains unpredictable.
There are a range of ways you can manage your premium:
Did you know insurance companies need insurance as well? This is called reinsurance.
When a severe weather event hits Queensland, the costs to help our members recover can be significant and reinsurance supports us in supporting our members through these events.
Reinsurance is factored into each policy with RACQ, and ultimately means we can continue to sustainably function as a business and support our members now and into the future.
Insurance products (excluding Travel Insurance and the Life and Income Protection Insurance suite of products) are issued by RACQ Insurance Limited ABN 50 009 704 152 (RACQ). Conditions, limits and exclusions apply. This is general advice only and may not be right for you. This information does not take your personal objectives, circumstances or needs into account. Read the PDS and any applicable Supplementary PDS before making a purchase decision on this product. You can also access our Target Market Determinations on this website.