Motor Vehicle Insurance Premium Rebate Promise
In our current environment, the Coronavirus pandemic has changed, and could continue to change, the way Queenslanders use their cars. While we are seeing most people back in their cars, the reality is, things can change quickly. And that's why we are pleased to introduce our Motor Vehicle Insurance Premium Rebate Promise*.
We will be reviewing the performance of our motor vehicle insurance product every six-months to understand any impacts that COVID-19 has had on driving and claims for our members. Our first review will be for the period 1 July 2020 through to 31 December 2020 and our second review from 1 January 2021 through to 30 June 2021**.
If we find that we have made an unexpected surplus during a period, our promise is that we will return that additional premium to our motor policyholders or their communities.
As a mutual, our commitment is to put our members and the community first.
*Excludes Compulsory Third Party.
**Following the conclusion of the second review period, RACQ will consider whether to continue with the Motor Vehicle Insurance Premium Rebate Promise as we don’t know how long we will be living with the impacts of Coronavirus.
Motor Vehicle Premium Rebate Promise FAQs
Why is RACQ offering a Motor Vehicle Premium Rebate Promise?
The Coronavirus pandemic has and could continue to change the way Queenslanders use their vehicles, so that’s why we are pledging to review the performance of our motor insurance product (excluding Compulsory Third Party) in six month periods, with the first period being the six months ending on 31 December 2020.
In addition to the savings already delivered to members, this new rebate scheme is another way RACQ is looking out for our members in uncertain times.
What will determine whether a rebate is available?
A reduction of 5% or more in collisions will mean that people are driving their cars less and be significant enough to impact motor vehicle claims costs. However, we also cover storms, thefts, malicious damage, hail and damaged while parked. As an example, if we have a hailstorm that costs millions of dollars, we unfortunately won’t be in a position to return premium to you even if you are driving your car less because a hailstorm would offset any potential unexpected surplus due to people driving their cars less often.
In calculating whether a rebate can be paid to members, RACQ will consider any unexpected surplus against a range of factors, which could include whether collision frequency has reduced by more than 5% and the loss ratio on the motor vehicle insurance portfolio has reduced by more than 3%.
Whether we determine that a rebate is available or not, RACQ will communicate the outcome after each six-month period. RACQ expects to be able to advise you of the outcome no later than three months after the end of each six-month assessment period.
How will I get this rebate?
Where the rebate amount is $10 or more per policy after we have taken administrative costs of processing the rebate into account, we will organise for you to receive a rebate. RACQ has made a commitment to our members that we will continue to search for ways to add value to the community.
If it is determined that a rebate is to be paid, but the rebate will be less than $10 per policy, we will donate the money to the RACQ Foundation to use to support communities doing it tough as a result of the Coronavirus pandemic, droughts and catastrophes.
The process undertaken to provide rebates to members will also be audited to ensure that the criteria attached to the payment of rebates is adhered to.
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.