Motor Vehicle Insurance Premium Rebate Promise

March 2021 (update)

In July 2020, we introduced our Motor Vehicle Insurance Premium Rebate Promise* as part of our focus on delivering value to our members.

We promised to review the performance of our motor vehicle insurance products to understand any impacts that COVID-19 has had on driving patterns and collision rates for our members. We promised that if we made an unexpected surplus for the period, we would return that additional premium to our motor policyholders and their communities.

Fortunately, Queensland has not experienced wide-spread lockdowns. At the conclusion of our first review period (1 July 2020 to 30 December 2020), driving patterns and collision rates had normalised and therefore as no unexpected surplus had been collected, no rebate will be paid. As part of our continued commitment, within three months of June 30, 2021, the results of the second review period will be reported on. Following the conclusion of this review, RACQ will consider whether to continue with the Motor Vehicle Insurance Premium Rebate Promise.

During COVID-19, we were proud to support not only our members, but the wider Queensland community via a number of key initiatives, some of which include:

  • $7 million in savings for members through motor insurance premium pauses, reductions and rebates during COVID-19^
  • 88,000 meals delivered to Foodbank QLD distribution points by RACQ Foundation team^
  • 46,030 primary and secondary school students visited by our Education team^.

^Figures based on FY20 statistics. See RACQ FY20 Annual Report for more details.

July 2020

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

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. The second six month period will end 30 June 2021.

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.

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.

RACQ is not legally obliged to provide a rebate to members so has established some criteria around when rebates will be provided. If you hold a motor vehicle insurance policy (except CTP) with RACQ that is active on 31 December 2020, or on 30 June 2021, you will qualify for a rebate if one is available. This will not be impacted by claims you might have made or whether you have already received a discount on your policy due to Coronavirus pandemic impacts.

We will calculate the rebate based on the length of time you have held the insurance during the qualifying six-month period. This will mean that all motor vehicle policyholders (except CTP) will benefit from any rebate that is determined that can be applied, except in circumstances such as when the rebate amount is less than $10 per policy after taking into account administrative costs. The rebate will be the same for all motor policy types and the amount paid will depend on the length of time the policy was active during the six-month period.

Insurance is all about pooled risks; everyone pays a little into the pool to help those unfortunate few who suffer a loss. We have used the same principle here. Everyone who has contributed to the pool will benefit from it. The only adjustment we will make is based on the time you have been in the pool.

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.