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Home insurance pricing

How your premium is calculated when buying or renewing your policy

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Premium changes
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Member benefits and discounts
Frequently asked questions
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Why home insurance costs have risen

The insurance industry is experiencing challenging market conditions, which has had a knock-on effect for reinsurance costs for new and renewed policies alike. 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.

Manage your policy

Are your policy or payment details out of date? You can log in to your online account to check what you're covered for or call us to update your policy details.

Manage your policy

Take control of your policy 

Whether you're buying a new policy or renewing your existing one, here's how to help make sure your cover suits your lifestyle and budget.

Payment frequency

You can choose to pay monthly or annually so you can better manage your spending. Keep in mind that if you pay annually, you'll save some money.

Consider your excess

A higher excess may reduce the premium you pay upfront – but remember, this is the amount you'll contribute towards a claim if the time comes.

Sum insured

Make sure you're insured for the right amount it would cost to rebuild to avoid being underinsured. To estimate the value of your home buildings or contents, use our building calculator^ or contents calculator.~

Valuables listed

You may have some valuable items listed on your policy that you no longer own. Keep your assets list up to date to make sure you're not paying for more than you need to.

Update your details

It's worth double-checking your property details are accurate. If you've done renovations like adding a second storey or a pool, it can affect your premium.

Exclusive benefits and discounts for RACV Members 

Everyday savings

RACV Members save on exclusive offers and discounts, including everyday items like groceries, fuel and e-gift cards from a range of popular retailers.

Member discounts

The longer you're a member, the greater your discount on selected products with our Years of Membership benefit#. 

Flexible payments

Pay the way that suits you – monthly or annually – and manage your premium. You can reduce your premium upfront by selecting a higher basic excess.

Frequently asked questions 

The two main factors that affect the price of your insurance are the likelihood of a claim being made on your policy in the future and the anticipated cost of a claim if this happens. Your premium is likely to change year to year, even if your personal circumstances remain the same, based on a range of factors.

Your premium is calculated by considering and combining:

  • choice of excess
  • policy options
  • pricing factors, like how your home is occupied or your address
  • minimum and maximum premium
  • cost of choosing to pay by the month
  • discounts you're eligible for
  • government charges.

To understand how these things may affect your premium, check out our Home Insurance Premium, Excess and Discounts Guide (PDF, 73KB).

You may have seen an increase to your premium when you received your renewal notice. There are many things that may impact the cost of your insurance year-on-year, like:

  • inflation
  • increased wild weather
  • changes to your circumstance like changing your address
  • adding optional covers.

These can affect your premium even if you’ve never made a claim and your personal circumstances haven’t changed.

RACV Insurance can help protect what matters to you the most, should you ever need to make a claim. As an RACV Member, you can manage your premium with flexible basic excess options and monthly and annual payment options.

To understand how we work out your premium, check out our Premium, Excess and Discounts Guide.

There are a few things you can do to help reduce your premium:

Increase your excess
Choosing a higher basic excess may reduce your premium. But remember: if you make a claim, you’ll pay more out of pocket.

You can change your basic excess at your policy renewal time through your online account.

Pay annually
When you pay your insurance upfront, instead of in monthly instalments, you may pay less.

Multi-Policy discount
Save up to 10% on each policy when you take out more than one eligible RACV insurance policy.* Find out which policies are eligible

Loyalty discount
The longer you’re a Member, the greater your discount on selected products# with our Years of Membership Benefits loyalty discounts program.*


#RACV Years of Membership: at 5 years Bronze cardholders receive a 5% discount, at 10 years Silver cardholders receive a 10% discount, at 25 years Gold cardholders receive a 15% discount and at 51 years Gold 50 cardholders receive a 20% discount.

* The Multi-Policy Discount and Years of Membership Benefits exclude Travel, Business and Farm Insurance products. To qualify for the Multi-Policy Discount, you must hold two eligible RACV Insurance policies. For further details, see the Premium, Excess and Discounts guide at racv.com.au. Discounts will only be applied until any applicable minimum premium is reached. On renewal, any increases or decreases in your premium may be limited by factors such as your previous year’s premium. You may not save more with more eligible policies and by staying with RACV Insurance longer if a minimum premium is reached, or limits have been applied to increases or decrease in your premium.

There are a few things that may impact the cost of your insurance year-on-year, like inflation, increased wild weather and reinsurance costs. They can vary each year, as your premium does, even if you've never made a claim and your personal circumstances haven't changed.

Extreme weather events like bushfires and floods have also become more frequent and more severe. This has contributed to increased risk of a major event happening and rising costs associated to repair and rebuild, like the cost of skilled trades and raw materials.

RACV Insurance can help protect what matters to you the most, should you ever need to make a claim. As an RACV Member, you can manage your premium with flexible excess options, monthly and annual payment options.

To understand how we work out your premium, check out our Home Insurance Premium, Excess and Discounts Guide (PDF, 73KB).

There are three types of excess:

Basic excess
This is how much you pay when making a claim, including claims for fusion cover and portable items (if you’ve added them to your policy).

Your basic excess can be $100, $200, $300, $500, $750, $1,000, $2,000, $3,000, $4,000 or $5,000. If you’re aged 50 or older, you can choose a $0 basic excess. Remember, choosing a higher basic excess can reduce your premium.

You can change your basic excess at your policy renewal time through your online account.

Accidental damage excess
If you choose to add accidental damage cover and make a claim, you’ll pay a $300 excess instead of your basic excess.

Special excess
If a special excess applies to your policy, you’ll need to pay this as well as your basic excess.

Yes, you can choose monthly direct debit instalments, or one annual payment. Keep in mind that if you pay annually, you'll save some money.

If you're taking out a new policy, you can choose your payment frequency when you sign up. Already have a policy? Call 1300 610 377 to switch to monthly payments at renewal time.

The amount you insure your home and contents for (we call that the 'sum insured') should be enough to rebuild your home or replace your contents if you had to do it today.

Remember, when we talk about your home, we don't just mean the building itself. If you have things like fences, sheds, in-ground pools, or covered car spaces, they count too.

There are a few things to think about:

  • If you underinsure your home and contents, you may be caught short if you have to totally rebuild and replace them.
  • If you insure your home and contents for more than it costs to rebuild and replace them, you'll only be able to claim the actual cost to do so.
  • Your building sum insured will be different to the market value of your home, which you might find on a property valuation, because it doesn't include the land value.
  • Make sure you include the cost of demolition and debris removal, building and planning professionals, plus any statutory or regulatory requirements. 

You can use our buildings calculator and contents calculator as a guide.^

Sometimes things happen that are beyond our control which can make it difficult for us to keep up to date with paying bills. If you need financial hardship support with any of your RACV products or services, we're here to help in any way we can.

We're happy to talk about your options if you call us on 13 15 60, or you can find out more about the financial hardship support we offer.

# RACV Years of Membership: at 5 years Bronze cardholders receive a 5% discount, at 10 years Silver cardholders receive a 10% discount, at 25 years Gold cardholders receive a 15% discount and at 51 years Gold 50 cardholders receive a 20% discount.

* The Multi-Policy Discount and Years of Membership Benefits exclude Travel, Business and Farm Insurance products. To qualify for the Multi-Policy Discount, you must hold two eligible RACV Insurance policies. For further details, see the Premium, Excess and Discounts guide at racv.com.au. Discounts will only be applied until any applicable minimum premium is reached. On renewal, any increases or decreases in your premium may be limited by factors such as your previous year’s premium. You may not save more with more eligible policies and by staying with RACV Insurance longer if a minimum premium is reached, or limits have been applied to increases or decreases in your premium.

^ The Cordell Sum Sure Estimate is an estimate of the cost to rebuild the improvements on your property and is generated by the Cordell Sum Sure Calculator which uses available property attribute information (including information you input or confirm) and/or information collated by CoreLogic about the subject property (from insurers and other third party sources) and analyses them against construction industry data to statistically derive a rebuild estimate through a series of computer implemented algorithms (Cordell Sum Sure Estimate).

The Cordell Sum Sure Estimate does not take into account individual design features, site specific conditions, structural conditions and materials, local planning laws or any other regulations and may not be suitable for your particular circumstances. The Cordell Sum Sure Estimate is an indicative guide only and must not be relied upon as an accurate representation of the costs associated with rebuilding your property or in lieu of appropriate professional advice.

While CoreLogic uses commercially reasonable efforts to ensure the Cordell Sum Sure Estimate is current, CoreLogic does not warrant the accuracy, currency or completeness of the Cordell Sum Sure Estimate and to the full extent permitted by law excludes all loss or damage howsoever arising (including through negligence) in connection with the Cordell Sum Sure Estimate.

~ Typical home contents replacement costs are provided by Sum Insured. Whilst all reasonable care is taken to ensure the accuracy of the information as a guide for costing building contents replacement costs, no responsibility is accepted by Sum Insured for its accuracy. Please check with a Valuer or other suitably qualified professional for an accurate costing estimate. Insurance Australia Limited (A.B.N. 11 000 016 722) takes no responsibility for the costs provided by Sum Insured nor any liability for the accuracy of or reliance upon or use of, the costs.

This service is licensed to Insurance Australia Limited (A.B.N 11 000 016 722) for use by its customers.

© 2003 - 2025 Sum Insured is a trading name of Land Services SA Operating Pty Ltd (ACN 618 229 815) as trustee for Land Services SA Operating Trust (ABN 86 836 650 939). The building contents replacement cost calculator is registered under Australian Patent Number 2010202987.

The information provided is general advice only. Before making any decisions please consider your own circumstances and the Product Disclosure Statement and Target Market Determinations. For copies, visit racv.com.au. As distributor, RACV Insurance Services Pty Ltd AFS Licence No. 230039 receives commission for each policy sold or renewed. Product(s) issued by Insurance Manufacturers of Australia Pty Ltd ABN 93 004 208 084 AFS Licence No. 227678.