Your Insurance Premium

Many factors can impact the amount of premium that we charge, including what you’re insuring, the policy you choose, and how we calculate premiums from time to time. We understand that premiums, and changes to them, can be confusing so we’ve put together some of the factors that can influence the premiums you pay.

What impacts my home &/or contents premium?

When insuring your home and/or contents, we ask several questions to help you determine the cover you need and the associated premium. Some of the key pieces of information that impact your premium are listed below.

What impacts my car premium?

When insuring your car, we ask several questions to help you determine the cover you need and the associated premium. Some of the key pieces of information that impact your premium are listed below.

What influences premium?

As an insurer we have a responsibility to maintain a level of capital to meet our customers’ needs in the event of losses/claims. Throughout this process, we always aim to ensure premiums are set to fairly reflect the risk and the cover provided for our customers. This means striking a balance between pricing policies for specific risk versus pooling that risk and spreading the cost to make insurance more affordable across the board.

We are continually checking our pricing against factors like the number and types of claims we experience and changes to the cost of running our business. This means that each year your premium can change, even if your personal circumstances haven’t.

Claims

Taxes & Levies

Reinsurance

Expenses & Profit

Concerned about the cost of your insurance?

Here are some ways to save on your premium

Check your contents sum insured – use our online calculator to check it’s up-to-date and would be sufficient to replace all of your contents. For example, if you have downsized since setting up your policy, you may be paying for more cover than necessary. It’s also important your sum insured is updated when you accumulate more items, so you’re not caught short in the event you need to claim. Often, the extra bit of cover you could need, may not significantly increase your premium.

Review your excess – depending on what you think is manageable for your budget, you may want to review your excess. There are different excess options available, in case you need to make a claim, and generally the larger the excess, the smaller the premium. Remember, you’ll need to pay this amount if you make a claim so it should still be affordable. You should also take into account any additional excesses that may apply.

Check your home sum insured – use our online calculator to check it’s up-to-date and will sufficiently cover the rebuild of your home. For more information, check out our Sum Insured page.  

Consider how you pay – you can choose to pay your premium annually or spread the cost by fortnightly or monthly direct debit. You’ll pay less if you pay one annual lump sum.

Review your benefits – you’ll find your optional benefits listed on your policy schedule or on the Policy Summary page in your My AA Insurance account. For example;

  • If you could use another vehicle while yours is being repaired and wouldn’t need us to provide a rental car, you may wish to remove the optional Rental Cover benefit from your Comprehensive Car Insurance Policy. Removing this benefit saves $50 (Inc. GST) per year.
  • You may decide you no longer want or need the optional Excess-Free Glass Cover benefit for your Home Insurance Policy. Removing this benefit saves $69 (Inc. GST) per year.