How is car insurance calculated?

3 February 2021

Car insurers — like Suncorp Insurance — calculate your premium by taking a range of factors into account. These factors, along with claims data from many other drivers, is used to form predictions about driving habits. This then informs your premium, as they help to estimate how likely you are to make a claim.

How much does car insurance cost?

The cost of car insurance is based on the likelihood of you making a claim, in addition to government taxes and other charges.

If you want to know how much Suncorp car insurance will cost you, just get a quote online. It only takes a few minutes! Once we know more about you and your situation, we’ll have an idea of how much a policy might be. You can find out more about how we calculate premiums in our Car Insurance Additional Information Guide.

5 factors that influence your car insurance premium


Statistically, drivers under the age of 25 and those with less experience are more likely to be involved in an accident. This means they may be charged a higher premium.

(FYI, if you’re an eligible Suncorp customer, you can still save! If a parent or caregiver has their own comprehensive policy, drivers under 25 can still receive a 10% discount).

The age of any additional drivers listed on your policy is also considered. If you’ve listed a driver and they no longer use your car, removing them from your policy could reduce your premium.

Driver history

The driving history of both you and any additional drivers on your policy can inform your premium. For instance, if you’ve been involved in incidents in which you were at fault, the cost of your policy will likely be higher.

At Suncorp Insurance, we reward drivers with years of good driving experience. Each year you continually insure your car comprehensively with us without making an excess payable claim, we will reward you with a Claims Free Driver Rewards credit on the next renewal of your policy for that car. Claims Free Driver Rewards credit is determined using the status of claim(s) on your policy when we calculate your renewal premium.

With Claims Free Driver Rewards, you could be eligible for a credit on your next policy renewal of up to 15% after 14 plus years of continuous Suncorp Comprehensive Car Insurance with no claims that affect your Claims Free Driver Rewards.

Where you live

Where you keep your car overnight might also influence the cost of your premium. Insurers use claims data to determine the likelihood of your car being stolen or affected by extreme weather, such as flooding, hail and storms.

Moved recently? Don’t forget to update your address.

Your car

Your car’s age, make and model, and whether it’s under finance, may also be factored in when determining your insurance premium.

If you’ve paid off your car loan since your last renewal, check that your policy reflects that. You may be eligible for a lower premium.

Your level of cover

The policy you choose will also impact the cost of your premium.

Take Suncorp’s Comprehensive and Third Party Car Insurance. Third Party only covers damage you cause to someone else’s car and property, with some limited cover for damage to your car caused by uninsured drivers. Comprehensive, on the other hand, can cover damage to your vehicle and someone else’s car or property. Since the coverage provided by Third Party Car Insurance is less, well, comprehensive, it’s generally cheaper to purchase.

Adding optional covers, such as Roadside Assist, to your policy can also increase your premium.

Compare Suncorp Car Insurance policies

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Insurance is issued by AAI Limited ABN 48 005 297 807 trading as Suncorp Insurance. Read the relevant Product Disclosure Statement before buying this insurance. Target Market Determination 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.