Why do my premiums change?
Insurance premiums can change over time, as there are several factors that play a role in determining the cost of your cover.
Understanding what influences your premium can help you make informed decisions about your policy and identify what you can manage.
What this page covers
Please note: this information only applies to GIO Platinum, Comprehensive, Fire Theft and Third Party Property Damage, Third Party Property Damage, and GIO Home and Contents Insurance policies.
What is an insurance premium and why does it change?
The cost of your insurance is called the 'premium'. It's the amount you pay for your insurance policy and depends on many factors.
We’ll calculate your premium based on:
- your risk
- the excess you choose, and
- the type of insurance and Optional covers that you choose
- compulsory government charges such as stamp duty and GST, and
- Emergency Services Levy, where applicable.
This isn’t a list of all our factors. The factors we use can change and how these combine to affect your premium will differ from person to person.
This is also why it may change at your policy renewal.
The premium you pay is also affected by other things including (but not limited to):
- the cost of claims we’ve paid to other customers and claims we expect to pay in the future
- our expenses of doing business
- insurance market conditions.
What this page covers
Market conditions
Premiums may also be influenced by factors including (but not limited to):
- inflation
- supply chain constraints (like repairers, parts or materials), and
- weather events.
Another impacting factor is the price of reinsurance. This is basically insurance for insurers so we can ensure we’re ready to help Aussies when big events come our way.
Home Insurance
Sum Insured
The sum insured is the actual amount you’re covered for and is the most you can claim for any one incident unless stated otherwise on your policy. Depending on your policy, you’ll have either a home building sum insured, contents sum insured, or both.
You choose the sum insured when you first purchase your cover and can change it during your period of insurance if you need to. Your Sum Insured will be noted on your Certificate Of Insurance.
As the price of repair materials which would be used for repairs increases, so does the cost of repairs overall. To protect you against the risk of underinsurance, we may choose to adjust the home’s sum insured at the end of your period of insurance. This is also to account for various factors including inflationary trends in building materials and labour costs. However, you still need to consider if the sum insured is suitable to you.
In short, this means the sum insured may need to increase when you renew your insurance so it provides the same level of cover, otherwise there's a risk of underinsurance.
Location
Your location plays a big role. In some areas of Australia, natural disasters or severe weather events may happen more often, which can lead to a higher premium for that location.
Areas with higher levels of theft, vandalism and other incidents will also affect your premium.
Property characteristics and building materials
Your premium will be affected by things like:
- the building's age
- the building's size and,
- the construction of the building.
The materials used to build a home will affect the premium charged, particularly the roof and walls.
Weather events
Weather events like fires, floods and storms are getting more severe. This means that the cost to rebuild homes and replace contents following these events may be changing, and that’s then reflected in your premium.
This change is so that insurance companies can continue to help Aussies recover after severe weather events.
Claims
The total number of home claims across Australia which we receive may cause premiums to change.
If big events occur, like massive floods or fires during hot summers, and we need to assist in the repair or rebuild of thousands of homes, then future premiums may be impacted.
That’s so we can provide continued support to Aussies when they need it.
Car Insurance
Amount Covered vs Market Value
Amount Covered is a set amount, and it’s the maximum we’ll pay for loss or damage to your car. Keep in mind that your Amount Covered won’t automatically update if you add accessories or mods to your car. You can increase your amount if you’ve added modifications or accessories otherwise you'll have to wait for your policy renewal.
The Amount Covered is shown on your certificate of insurance. You can view and update your policy at any time using your online account.
Market Value is a variable amount based on our assessment of how much the market would pay for the car at the time of an insured incident. The Market Value depends on the condition of your car and what it would sell for based on comparable sales in the market. It's important to keep in mind this is not necessarily the highest sale price. It does not include stamp duty, transfer fees, dealer warranty or delivery costs.
Bear in mind that if you choose to insure for Market Value, you won’t be able to change to Amount Covered until it’s time to renew your policy. Read the PDS for more info, including any deductions that may apply.
Type of vehicle
The car you choose — its make, model, and safety features — also plays an important role in the makeup of your premium. This can be because the cost of replacement parts may vary depending on the kind of vehicle you have, and any unique or complicated features it has.
Driver details and age
The drivers listed on your policy can affect your premium. For example, younger drivers often have higher premiums because they’re seen as more likely to make a claim.
We use historical claims data about age, experience and vehicle use to assess this claim likelihood for all customers.
The address and location where the car is kept
The address and location where your car is kept will have an impact on your premium. This, of course, depends on where you live and your specific circumstances.
This is because risk is evaluated based on location-specific data, like:
- theft rates
- accidents, and
- natural disasters and weather events, including hail.
Claims
Historical claims data is used and considered to predict how likely it is that you’ll make a claim in the future.
This is why your premium may change depending on the total amount of claims we receive each year across all motor policies.
Excess
Home policies
Did you know you can vary your standard excess amount on your GIO Home policy to ensure it better suits your needs? You can lower your premium by increasing your standard excess. Keep in mind that choosing a higher excess will mean you'll need to pay this at claim time. It’s about finding the right balance for you.
Motor policies
With GIO Comprehensive Car policies, the standard excess can’t be reduced, but you can choose a voluntary excess (within a range we offer) to reduce your premium. This voluntary excess is in addition to the standard excess and will apply to all claims where the standard excess is needed to be paid as part of the claim.
You can't add a voluntary excess with Third Party Property Damage or Fire, Theft and Third Party Property Car policies.
Read the AIG for further info.
Paying by Instalment
When your premiums are paid upfront annually it is cheaper. Should you choose to pay monthly, a higher premium is charged.
Sum insured (for Home policies)
Make sure your sum insured matches your needs – without being too much or too little.
Overestimating means paying higher premiums, while underestimating could leave you at risk of underinsurance, which means you may not be able to meet the costs of rebuilding your home in the case of a total loss claim.
If you adjust your sum insured your premium will change as well.
If you need a little help with finding out how much your sum insured should be, for either a complete home rebuild or full contents replacement, you can use Suncorp home building calculator or contents calculator.
Make sure your details are all up to date
Renewing your cover without reviewing it is easy, but it’s always wise to double-check that your details are current and accurate. Here are some examples to consider:
- If your driving habits have changed since you first took out your policy, and the number of kilometres you drive is different, make sure your policy reflects this.
- Verify that all regular drivers of your car are listed on your policy. Check with AIG for details on excesses that apply to different drivers.
- If your car was financed when you bought your insurance policy but you’ve since paid off the loan, update your policy accordingly.
- If you’ve recently renovated your home, confirm that your sum insured still covers your updated space and belongings.
Review your optional covers to ensure your policy meets your needs. You can add or remove optional covers to better suit your situation.
You can easily manage your policy online. When reviewing it, always consider your personal situation.
Disclaimers
The information is intended to be of general nature only. Subject to any rights you may have under any law, we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon it – please make your own enquiries.
The information provided is accurate and true as of 5th March 2026, noting we may change our pricing practice (and the premium factors) from time to time.
GIO Home and Contents Insurance is issued by AAI Limited ABN 48 005 297 807 trading as GIO.
GIO Platinum, Comprehensive, Fire Theft and Third Party Property Damage, Third Party Property Damage Insurance are issued by AAI Limited ABN 48 005 297 807 trading as GIO.
Please read and consider the relevant Product Disclosure Statement before buying this insurance. Go to www.gio.com.au for a copy.
The Target Market Determination is also available. This advice has been prepared without taking into account any person’s particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it.
