How your car affects your insurance premium

How your car affects your insurance premium

When drivers compare car insurance, they often focus on their age or claim history. But one of the biggest factors in your premium is the car itself. Insurers use vehicle-related data to estimate risk, expected repair costs and the chance of theft or damage.

A newer or more expensive car often leads to a higher premium. That is because replacement parts, labour and repairs are usually more costly. Cars with advanced technology can also be more expensive to repair after even a small accident.

The brand and model matter too. Some cars are statistically involved in more claims, while others are more attractive to thieves. Insurers may also look at the power of the engine, because more powerful cars are sometimes associated with higher risk.

The age of the car is another important factor. An older vehicle may have a lower premium because the value is lower and many drivers choose WA instead of All Risk. At the same time, very old cars can have different risk characteristics depending on usage and condition.

Electric cars are a good example of how vehicle type can influence price. Although EVs have many advantages, their batteries and specialist repair requirements can affect insurance costs. The same applies to luxury and high-value cars, where insurers may use additional conditions.

If you are unsure which type of insurance best matches your car, it helps to compare by value and age rather than looking only at price. A lower premium may also mean less protection than you actually need.

To understand which cover level fits your vehicle, visit our insurance overview. You can also explore WA, WA+ and All Risk.

Back to overview