insuring your car

Car Insurance renewal prices explained

You may have noticed that car insurance renewal prices can fluctuate year on year. But you may have no clear idea why, or what you can do about it.

By understanding how your renewal premiums are calculated, you can gain some clarity and control over them.

Renew your policy

Why are Car Insurance prices increasing?

Insurance premium pricing is a complex thing with many variables. That can make it difficult to pinpoint one reason for a change. There are a range of factors involved. Some of these include:

More severe weather more often

Weather events like floods, fires, hail and storms are becoming more severe and less predictable.

Insurance companies are paying more for the cost of repairs and to help people financially recover when these events happen, and are expecting to continue paying more. The effect of this can be seen in insurance premium prices.

Supply difficulties

Supply chains are still under strain from the long-term effects of Covid, which renewal premiums tend to reflect. It is becoming more challenging to schedule appointments with mechanics, and source spare parts for cars, both old and new.

What to consider when renewing your Car Insurance

Don’t fall into the habit of setting and forgetting. When renewal time rolls around, check that your policy details are up to date to make sure you have the right cover in place for your budget and circumstances.

Car finance

If you’ve paid off your car since you took out or last renewed your policy, check that this is reflected in your policy.

Listed drivers

Consider your listed drivers, as they can impact your premiums. If, for example, your teenager was listed on your car policy but they’ve bought their own car, they may no longer drive yours anymore. Remove them from your policy for a lower premium.

Distance driven

The more you drive, the more you generally pay for insurance. Consider reviewing your driving history to see if your average kilometers driven have changed in the last 12 months, and update your policy. This may alter your premium.


You can choose a higher Voluntary Excess with a GIO Comprehensive Car Insurance policy, which will affect your premium. Opting to pay a higher level of excess in the event of a claim will result in a lower premium.

Of course, this means that there will be a greater out-of-pocket cost at claim time, so consider whether this suits you and your circumstances.

Optional covers

You may have added some optional covers to your policy that you no longer need. Removing optional cover that you no longer need usually lowers your premium.

Amount covered

You can vary the amount covered for your car on GIO Comprehensive Car Insurance and Fire, Theft and Third Party Property Damage Insurance policies, within a select range.

Choosing a lower amount covered lowers your premium. Keep in mind that this is the most we will pay for your car in the event of a total loss claim, so reducing it could place you at risk of being underinsured. Consider whether this is appropriate for you and your budget.

Claims free savings

By sticking with GIO, you could benefit from Claims Free Savings. For every year that you don't make an excess payable claim, we'll give you a credit towards your next year's renewal premium for that car. The longer you keep your policy with us, the greater the credit – from 5% after one year up to 20% after 15 years+ of continuous GIO Platinum or Comprehensive Car Insurance with no claims that require an excess.

You can learn more about potential ways to save on your GIO policy here.

Update and Renew Your Policy


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Insurance issued by AAI Limited ABN 48 005 297 807 trading as GIO. Read the Product Disclosure Statement before buying this insurance. The Target Market Determination is also available. This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it.