How premiums are calculated

Understand some of the facts that are used to calculate insurance premiums

How is the cost of insurance determined?

The cost of your insurance policy depends on your risk, which in turn reflects the likelihood you will need to make an insurance claim.  The lower your risk, the lower your premium will generally be.

It also depends on the value of what you are insuring, because things with a higher value will generally cost more to repair or replace.

Your premium is also made up of relevant local state and territory government stamp duties and levies, as well as the GST.