Premiums explained


What may influence your premium? 

When your insurer calculates your premium, it is likely to take a range of factors into account. These factors will change from person to person. 

Some key factors influencing your premiums may include: 

  • Type of cover selected 
  • Any optional benefits you have selected under your policy 
  • Discounts you are eligible for 
  • Previous claims and incident history 
  • Whether you choose to pay your premium annually, monthly or by instalments 
  • Government taxes and any state or territory duties or levies 
  • How much cover you want 
  • Your risk assessment by the insurer 
  • The level of excess you select 

Tips for managing premiums

Consider these tips to manage the cost of insurance: 

  • Increase your excess
    One way to reduce the amount of the premium you pay is to agree to take on a certain proportion of the risk by increasing your excess. Many insurance policies allow you to specify an excess. In general, a higher excess will mean you pay a lower premium 
  • Lower your risk
    Many insurers will offer you a cheaper premium if you take steps to lower your risk. You may receive a discount on your home and contents policy if you have security devices in place such as window locks and deadlocked doors. In some circumstances, insurers may not offer you a policy unless you have taken reasonable steps to lower your risk.  
  • Talk to your insurer
    Providing additional information to the insurer about your specific risk may also allow your premium to be reviewed. You can also ask your insurer about how you might be able to lower your premium
  • Shop around
    Each insurer will offer products that differ from those offered by other insurers, with variations in thecoverage, the terms and conditions, exclusions and costs 
  • Ask if you qualify for any discounts
    Some insurers may offer discounts such as a no claims or multi-policy discount if you have two or more policies with one company 
  • Pay your premium annually
    If you pay your premium by instalments it generally costs you more than if you choose to pay your premium in one annual lump sum payment.
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