Car insurance premium FAQs

Your car insurance premium is the total amount you pay to have your car covered by an insurance policy. You can usually pay it annually or by instalments.

Your excess is the amount you pay (out of pocket) at the time you make an at-fault claim. Different types of excesses can apply in different circumstances. To see what excesses may apply to you, check your Certificate of Insurance (COI).

If you’re having trouble paying an excess, we’re here to help. Visit our financial support page for more.

Some car insurance policies allow you to choose between agreed value or market value. Each option determines what you may be paid if your car is written off. For those policies, it is your choice which option you choose.

Agreed value: is a set amount we agree to cover you for if your car becomes a total loss. You can choose the amount based on a range we provide and doesn’t take into account how much it will cost you to replace your vehicle. Selecting a higher agreed value is likely to increase your premium, and a lower value could decrease your premium.

Market value: is the amount we determine your car is worth immediately prior to the incident and doesn’t take into account how much it will cost you to replace your vehicle. It's not the same as a trade-in value and is instead determined using local market prices and considering things like condition, age and modifications you might have made to the vehicle.

The fastest way to determine how either option impacts your premium, is to get a car insurance quote.

If you’ve modified your car (or you’re planning to), it’s important to tell us so we can make sure your policy details are up to date. If you don’t let us know about your modifications, the amount you receive from us when we evaluate or settle your claim may not take into account the modifications.

If we agree to change your policy, we’ll let you know if an additional premium applies (or if a refund is due) and we’ll issue an updated Certificate of Insurance.

Get in touch with us to discuss your modifications and how they may affect your premium.

Premiums can vary between Australian states because different locations can carry different risks, government charges and levies.

For more information on how we work out premiums, read our Premium, Excess & Discounts Guide.

Your driving record can affect how much you pay for car insurance.

When we work out your premium, we consider things that help us estimate how likely you are to make a claim, and what that claim might cost. This can include your claims history, demerits received, and how much driving experience you have.

If your record shows a higher chance of a claim (or higher claim costs), your premium may be higher. If you’ve had fewer or no claims, your premium may be lower, but it may still depend on your details and other factors we use to price your policy.

Young drivers aged under 25 years are sadly over-represented in road accidents, often as a result of inexperience, or risky driving behaviour. As a result, younger drivers are generally assessed at a higher risk category than some other groups and may face higher premiums and excess amounts as a result.

Your car insurance premium can go up or down as your circumstances change.

Some common reasons your premium may increase include:

• Personal changes: This might include your cover level and what options you may have added. For example, whether you’ve moved to a different area with a different risk association.
  
  
• External influences: Premiums can also be affected by things like market conditions, the cost of running our business, larger losses and costs related to large events like bushfires and flooding, discounts and offers, and other pricing changes.
  
  
• Government taxes and charges: Your premium includes government taxes and charges like GST and stamp duty. It may also include fire or emergency services levies, if applicable.

To learn more about how we work out premiums and discounts, read our Premium, Excess & Discounts Guide.

Agreed value is only one part of how we work out your premium. We also consider external factors in the market like whether there has been an increased number of claims received from all policyholders and the impact of that on all claims costs, depreciation, labour and repair costs if you were to make a claim.

For example, as your car gets older, its value may go down. But the cost to repair it can go up, because parts may be harder to find and more expensive.

Your premium is also based on other factors, including age, location, mileage and more.

For more information, read our Premium, Excess & Discounts Guide.

Yes, most NRMA Car Insurance policies can be paid monthly.

Your Certificate of Insurance shows how much you need to pay and when it’s due (either the annual premium or each instalment).

For more information, read the Premium, Excess and Discount Guides on our policy booklets page.

If you’ve missed a car insurance premium payment, you can:

• Open the NRMA Insurance app
• Log in to your online account
• Pay or renew your policy online
• Call us if you need financial assistance.

Remember to let us know about any payment issues as soon as possible so we can help support you.

If your payment is overdue, you'll need to pay the overdue amount as part of the claim settlement process. If you don't pay on time, or if it remains outstanding, we may cancel your policy.

Every policy is priced differently, but there are a few things that may help customers manage what they pay:

• Consider their excess: Choosing a higher excess may lower your premium, while choosing a lower excess may increase it. An excess is the amount you contribute towards the cost of a claim.
  
  
• Check if you’re eligible for discounts: We offer a range of customer discounts that could apply to eligible insurance policies such as our Multi-Product Discount¹, Relationship Discount² or Online Discount (for eligible policies purchased online)³.
  
  
• Choose a payment option that suits your budget: You can pay annually or, if available, by instalments via direct debit. Paying in instalments may not reduce your total premium, but it can help you spread the cost.
  
  
• Review the sum insured for your car: If you have an agreed value policy you may be able to reduce the premium if you decrease the sum insured or switch to a market value policy.

To learn more, read our Premium, Excess & Discounts Guide and our customer discounts page.

Ready to get cover for your car? Follow these steps to get started:

1. Get your quote: You can get a quote over the phone, or online on our website car insurance page. Simply click the ‘get a quote’ button and select the level of cover you’re interested in. We’ll ask you to enter some details about your car and about you.
   
   
2. Purchase your policy: Once you’ve selected a policy that suits you, you can pay for it upfront, or by instalments (depending on the cover).
   
   
3. Receive confirmation: As soon as you purchase your policy, we’ll send over your Certificate of Insurance and confirm your payment has been received.

Tip: To help keep things quick, have your vehicle details (e.g., number plate/VIN) and payment details ready.