To calculate the cost of car insurance, your insurer will assess the likelihood of you making a claim according to various items of information about your policy which are called ‘premium rating factors’.
To find out how a specific insurer calculates their premiums, refer the relevant PDS for the policy you're considering.
Depending on the type of policy, you may be able to insure your car for an agreed value, or its market value.
Agreed value is the amount you and your insurer agree to insure your car for. This should be equal to what your car is actually worth, and it doesn’t account for the fact your car’s value can change over time (however, your insurer may suggest a new value at renewal). It’s important that you regularly check the replacement cost of your car, so that you know you’ve got enough cover. These policies are usually more expensive than market value policies.
Market value is the amount that your car is worth according to the value of similar cars in a similar condition to yours. If you insure your car for its market value, you can expect that the amount you get back if your car is written off may get lower as the value of your car usually depreciates over time.
Comparing car insurance policies doesn’t have to be difficult, you just need to know what you’re looking for. Before you choose any policy, make sure you’ve looked into:
Cover: Decide whether you want comprehensive or a type of third party liability insurance, then compare the inclusions and exclusions listed in the applicable PDS and SPDS as you consider policies.
Cost: Compare the price of different insurance policies, making sure you go to the insurer’s website for your quote, as comparison websites can sometimes charge a markup or not show all available policies.
Reputation: Reviews and industry awards can help you see whether an insurer has a reputation for looking after its customers.
Roadside assistance: Comprehensive car insurance sometimes comes with roadside assistance included in the cost. However, it's important to make sure any included roadside comes with all the entitlements you need, as bundled roadside may not offer as much cover for services that a standalone roadside policy provides.
Flexibility: You may wish to pay your premiums monthly. Check which insurers offer this option at little to no extra cost.
Target Market Determination (TMD): This document explains who a specific insurance policy may be suitable for and highlights any parts of the policy that may make it not suitable for some customers.
Once you know exactly what you want in a policy, it’s time to compare pricing. To get an online car insurance quote, have the following information ready.
*Some insurers restrict the number of kilometres you can travel, and going over your travel limit can impact your claim.
Check your Product Disclosure Statement (PDS) and any Supplementary PDS to see if there are any cancellation fees or premium refunds that you’ll get if you switch insurers before your renewal date.
Call your current insurer to cancel your policy. Tell them the date you’d like your car insurance to cease and ask if they need your intention to cancel in writing.
Compare car insurance and sign up for a new policy. Make sure your new cover will start before or on the day that your old policy ceases, so that you’re never unprotected.
If you’ve bought your car with a loan, check with your lender to see if they need a copy of your new Certificate of Insurance.
It’s easy to switch car insurance providers when your policy is due for renewal, as you can use the information you have about the price of your insurance and what you’re covered for to decide if you want to continue with your current provider or switch. If you start looking when you get your notice of renewal, you’ll also have time to shop around without having to worry about a gap in your coverage.
Fire Insurance PolicyCompare CTP insurers. While the price of CTP in Queensland is the same regardless of which insurer you choose, some insurers offer extra benefits or it may be more convenient to have all of your insurance with one company.
Fill in the online form for switching CTP. You’ll need your driver licence and personal details of the registered owner or your Customer Reference Number (CRN) which can be found on your registration.
Wait out the remainder of your policy. Your CTP will be automatically transferred to your new insurer on your renewal date.
It pays to shop around when you’re looking for car insurance. But how often do you need to shop? A few events that can trigger a review of your car insurance include:
Changes to your circumstances: If you’ve bought a new car, you’ve moved house, or you want to list (or unlist) your kids or spouse as drivers or policyholders, you could benefit from reviewing your policy.
Modifications to your car: While some modifications may make your car more expensive to insure (for instance, if the modification includes rare or expensive parts), accessories like car alarms can reduce your premiums.
Changes to the market: Sometimes the value of cars can go up, especially if there’s a shortage. Make sure you have the right level of cover, particularly if you’ve got an agreed value policy.
Changes to the market: Sometimes the value of cars can go up, especially if there’s a shortage. Make sure you have the right level of cover, particularly if you’ve got an agreed value policy.
Changes to your driving habits: If you're not using your car as much as you used to, or you want to start using it for a different purpose (business use for example) you'll need to reassess your insurance.
Transfer your old car’s insurance to your new car (there may be a gap payment if there’s a difference in premium prices) or
Buy a third party or comprehensive car insurance policy for your new car if it’s a first car or you don’t intend to sell your old car.
For more information, read the Product Disclosure Statement (PDS), any applicable Supplementary PDS and Target Market Determinations. Note: CTP policies don’t have a PDS, SPDS or Target Market Determination.
You can check whether your car has CTP insurance by putting your licence plate number into the Queensland registration checker. This tool shows you when your registration expires, which is the same day that your CTP insurance will expire (you’re required to buy CTP whenever you renew your registration).
To find out whether you have other car insurance policies that are still valid, speak with your insurer or check your Certificate of Insurance.
Premium: A premium is the amount you pay for the cover your insurer provides you with under your policy. It includes any government statutory charges, levies, duties, GST, and other taxes that may apply.
Agreed value: The agreed value is the amount that your insurer agrees to insure your vehicle for. This amount is shown on your Certificate of Insurance. The agreed value includes all relevant statutory charges, GST and taxes.
Market value: The market value is the value of the vehicle at the time of the incident as determined by your insurer by checking against values of similar vehicles in your local market, taking into account the age and condition of your vehicle and the kilometres it has travelled. The market value does not include stamp duty, warranty costs, transfer fees, registration costs and charges, or dealer charges.