Why do my premiums change?
Insurance premiums can change over time, with several factors that play a role in determining your cover's cost. By understanding what influences your premium, you can make informed decisions about your policy and identify what you can manage.
Please note: this information only applies to Suncorp Comprehensive, Comprehensive Extras, Comprehensive Advantages, Fire Theft and Third Party Property Damage, Third Party Property Damage Car Insurances, and Suncorp 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.
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 make sure we’re ready to help Aussies when big events come our way.
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 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 increases, so does the cost of repairs overall. To protect you against the risk of underinsurance, we may choose to adjust the building 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.
Your location plays a big role. In some areas of Australia, natural disasters or severe weather events may happen more often, which translates 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 related to the property characteristics and building materials, 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 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.
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.
Driver details and age
Whoever is a listed driver on your policy will impact your premium. For example, younger drivers are generally considered to be more likely to claim based on claims history.
We use historical claims data about age, experience and vehicle use to assess this claim likelihood for all customers.
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.
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.
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.
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.
Home policies
Did you know you can vary your standard excess amount on your Suncorp 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 Suncorp 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. Property Car policies. Read the AIG for further info.
When your premiums are paid upfront annually it is cheaper. Should you choose to pay monthly, a higher premium is charged.
It’s easy to renew your cover without looking it over, but it’s always a good idea to double check that your details are correct. Here are a few examples:
- If your driving habits have shifted since you took out your policy, and the number of kilometres you drive has changed, you should ensure that’s reflected in your policy.
- Check that the listed drivers are the usual drivers of your car. Refer to the AIG for information regarding excesses that apply for different drivers.
- If your car was under finance when you took out your car insurance, but you’ve now paid off the loan, make sure your policy reflects this.
- If your home has been renovated recently, make sure the sum insured is still sufficient for your home.
Review your optional covers so that your policy still has everything you need. If a change is needed, you can add or remove optional covers to fit your circumstances.
You can easily manage your policy online. When reviewing your policy, always consider your own personal circumstances.
Ensure your sum insured reflects the right amount for your needs — not too much, and not 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's home building calculator or contents calculator.
Disclaimers
This information is intended to be of a general nature and for information purposes only. What your premium goes towards may differ and may change from time to time. 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 12th March 2026, noting we may change our pricing practice (and the premium factors) from time to time.
Suncorp Home and Contents Insurance is issued by AAI Limited ABN 48 005 297 807 trading as Suncorp Insurance.
Suncorp Comprehensive, Comprehensive Extras, Comprehensive Advantages, Fire Theft and Third Party Property Damage, Third Party Property Damage Car Insurance is issued by AAI Limited ABN 48 005 297 807 trading as Suncorp Insurance.
Please read and consider the relevant Product Disclosure Statement before making any decisions regarding Suncorp Insurance products before buying this insurance. 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.
