Motor Vehicle Insurance Premium Rebate Promise

At RACQ, we’re committed to finding ways to put our members and the community first.

In July 2020, in response to the COVID-19 pandemic, we introduced the Motor Vehicle Insurance Premium Rebate Promise* - a commitment to review the performance of our motor vehicle insurance portfolio every six-months to understand any impacts COVID-19 may have had on driving and subsequent claims for our members.

Our promise is that if any unexpected surplus is made over the six-month review period, we would return that additional premium to our motor policyholders or their communities.

August update for the period 1 January 2021 – 30 June 2021

During this review period, Queensland experienced a number of short lockdowns, however over the six-months driving patterns remained relatively stable and collision rates across Queensland continued to normalise. No unexpected surplus was collected, and so no rebate is available for this period.

Based on the results of this second review period, and the reducing impacts COVID-19 is having on our members’ ability to move freely around the state, we have decided not to continue with the Motor Vehicle Insurance Premium Rebate Promise into future terms. We continue to look for opportunities to give back to our members and their communities in meaningful ways.

March 2021 update for the period 1 July 2020 – 31 December 2020

Fortunately, Queensland has not experienced wide-spread lockdowns. At the conclusion of our first review period, 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.

We’re here for our members and their communities

Throughout the COVID-19 pandemic, we’ve continued to find opportunities to give back and provide value to our members and their communities:

  • Over $20 million in member savings across a wide range of our discount partners, including PUMA Energy fuel, Repco, Woolworths, and Thrifty Car Rentals^
  • RACQ Foundation approved $1.38 million in funding to help 113 community groups across Queensland
  • 68,238 primary and secondary school students visited by our Education team^.

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.

After the conclusion of each six-month review period, no additional surplus was calculated and therefore no rebate is to be paid. As such, RACQ has made the decision to retire this initiative.

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.

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.

*Excludes Compulsory Third Party Insurance.
^Figures based on FY21 statistics.