You may have noticed an increase in your premium. We'd like to walk you through some of the reasons why this may happen, and show you how you can get the most out of RACV membership.
The insurance industry is experiencing challenging market conditions, which has had a knock-on effect for reinsurance costs. Let's look at some of the major reasons for the increase:
Rebuilding costs and inflation
Material and labour shortages and inflation are putting ongoing strain on the building industry. This includes the cost of skilled tradespeople and the fact that raw materials are dearer and harder to find – making the costs to rebuild more expensive.
Contents repair and replacement
It is increasingly costing more to replace and repair contents items, which has contributed to rising claim costs. This takes into account supply issues, shipping delays and the global shortage of computer chips and other components of many white goods and appliances that make them cost more to replace.
Extreme weather events
Weather events like bushfires, floods and storms are happening more frequently and severely. This increases the level of insurance risk alongside rising costs associated with managing claims, like the cost of skilled trades and raw materials needed to repair and rebuild.