Why do car insurance premiums change?

The amount your vehicle is insured for affects your premium. For example, luxury cars can have higher premiums as they cost more to replace as opposed to a less expensive car in the event of a total loss.

The type of vehicle you have has a significant impact on your premium. This is because the cost replacement parts vary depending on the make and model of vehicle you have.

The place where your vehicle is kept can impact your premium. Generally, a higher population density in an area means more traffic and therefore, a higher chance of an incident occurring. Certain areas with higher risk of theft, vandalism and other similar incidents will also affect the premium.

A driver’s age and experience can affect the likelihood of having an accident or claim. Generally, more experienced drivers have less accidents.

Excess is the amount you ordinarily have to pay for each incident when you make a claim. If you choose a higher excess, you may be out of pocket more when making a claim. A higher excess reduces our claims cost meaning we can reduce your premium. Higher excess means a lower premium, lower excess means a higher premium.

A premium may change depending on the total amount of claims we receive each year across all policies. If we receive more claims than expected, premiums can be impacted.

When your premiums are paid upfront annually it is cheaper. Should you choose to pay monthly, a higher premium is charged.

After we have calculated the amount to cover your insurance policy, any applicable stamp duty, GST, charge and levy are then applied. Government taxes and charges may change from time to time.

You can choose a voluntary excess from the range we offer to reduce your premium. This excess applies to all claims in addition to your standard excess.

Paying your premium in one lump sum (annually) is cheaper than paying by monthly instalments. By opting to pay for your policy with an annual payment you can lower the total premium you pay.

A number of other factors can impact your premium, including;

• What you use your vehicle for? For example, your premium will generally be lower if you use your vehicle for private use compared to business use.
• Who drives your vehicle?  Age and driving experience of listed drivers can impact your premium.
• How many kilometres you travel each year? The more you are on the road, the more chances there are of having an accident therefore, your premium will be impacted by how far you travel each year.

If any of the details have changed it’s important to contact us to ensure you have the right level of cover and appropriate premium. 

• GIO offers a family discount  on your Platinum or Comprehensive car insurance – if you are under 25 and your parents have either a GIO Platinum or Comprehensive car insurance policy you may be eligible for up to a 10% discount on your Comprehensive Car insurance premium.
• GIO offers a $50 discount on your GIO Platinum or Comprehensive car insurance premium when you combine a policy with a GIO NSW CTP Green Slip for the same car.  The discount cannot be applied to the GIO NSW CTP Green Slip premium.  There must be a common NSW car registration number on the GIO CTP and GIO Platinum or GIO Comprehensive car policy. 
• GIO offers a multi-policy discount of up to 10% if you insure three or more eligible paid personal insurance policies with GIO. These can be home, contents, car, motorcycle, caravan, boat and CTP.  A GIO NSW CTP Green Slip and a GIO ACT CTP insurance policy counts as eligible policies; however, these policies cannot be discounted.  Comprehensive car insurance counts as an eligible policy, but the discount is not applicable to the Roadside Assist optional cover. Discount is not applicable to strata insurance policies and to GIO Home Assist, Excess-free Glass or Domestic Workers Compensation optional covers.

Discounts are also a factor that can affect your premium. Any discounts are usually calculated and applied before the application of government taxes and charges.

You should check your relevant policy documentation for information on discounts.

From time to time we might also offer discounts or some other special offers as part of a marketing campaign. If we do this, separate terms and conditions may apply and you might not be eligible for our usual discounts. The amount and type of discount offered can change or be withdrawn.

If you are eligible for more than one discount, we usually apply any subsequent discount to the already discounted premium.

Discounts do not apply to the GIO Roadside Assist portion of the premium if you purchase that optional cover.

To make changes to your policy, log in online to your account or give us a call on 13 10 10. Online changes are not available for motorcycle, caravan and motor home policies.