How a new car can affect your insurance premiums 


What are car insurance premiums? 

Your car insurance premium is the amount you pay to insure your car. It includes GST and any applicable stamp duty charges and levies.

The amount of the premium reflects our assessment of the likelihood of you making a claim and our costs of doing business. It is dependent on various factors such as your personal details, the type of car you own and the amount and type of cover you choose. For more details, refer to the Product Disclosure Statement.


Can I transfer car insurance to a new car?

Yes! Simply update your car details on your AAMI My Account within 14 days of getting a new car. If we insure the new car, your policy will be updated, and we’ll generate a new certificate of insurance. Just keep in mind that you may need to pay an additional premium, depending on the details of the updated car.

The best part? You’ll get to keep your Safe Driver Rewards credit on your Comprehensive Car Insurance.

You can even upgrade your policy mid-term via your AAMI My Account.


Can I transfer car insurance to a new owner?

Unfortunately, you can’t change the name of a policy holder, so if you’ve sold your car, and aren’t swapping your insurance policy over to a new vehicle, you’ll need to cancel your policy. The new owner of the car will need to set up a new policy in their name.

Consider AAMI Car Insurance for your new car

All levels of our car insurance provide cover for legal liability of up to $20 million for damage your car causes to other people’s vehicles or property..

Comprehensive Car Insurance also covers accidental loss or damage to your own car (including your mods and accessories). We’ll also arrange and pay the reasonable cost of a hire car after a not-at-fault accident, if you can provide us with the at fault driver’s name, address and vehicle registration number.

If your car is stolen or damaged and your claim is accepted as a total loss, you may be eligible for new for old replacement, if it’s less than two years old and you’re the first registered owner. That means, we’ll replace it with a new car of the same make, model and series – or something similar, if that isn’t available. If we’re unable to do this, we’ll pay you the amount covered, less deductions that apply.

Limits, conditions and exclusions apply, so check the Product Disclosure Statement for the full details.

Get a Comprehensive Car Insurance quote 


How a new car can affect your insurance premiums

When it’s a newer (or older) vehicle

Car insurance premiums can be affected by the age of your vehicle, but newer doesn’t necessarily mean more expensive.

While older cars are often worth less, resulting in a lower premium; keep in mind that it can sometimes be difficult and costly to source parts for older cars. It can also mean increased chances of it becoming a total loss after a minor accident, which can lead to higher premiums.

When it’s more (or less) expensive

Whether you’ve upgraded to a more expensive model or decided to economise, your new vehicle probably isn’t the same value as your old one. This means that the amount you need to insure your car for will change too, and that affects your premium.

When it’s a race car

If you’re buying a muscle car, it’s probably going to cost more to insure than your nanna’s sedan. (Unless, of course, nan drives an imported turbo version). However, according to our experts, it’s not just engine size that matters when it comes to calculating your premium.

AAMI Car expert Grant has worked with countless AAMI customers to help them with their policies. He says, “Until you factor in the dynamics of the car, the engine size and power means little by itself. You need to combine that with all the other dynamics of the car. You could buy an 88-kilowatt, four-cylinder car from the year 2000 that will outperform a 2016 built 210-kilowatt, V6 vehicle."

“Remember, just because a person is tall, it does not mean that they play basketball. It’s about the whole package. So, less engine power does not necessarily mean a lower premium.”

You’re choosing between an automatic and a manual

Buying an automatic car over a manual can also affect your car insurance premium. Automatic cars sometimes cost slightly more to buy and insure than manual ones. You can find out how much AAMI Car Insurance may cost by comparing options and getting a quote online. 


Explore Car Insurance 


Calculating car insurance premiums is no easy feat

When we underwrite your insurance policies, whether you opt for Comprehensive Car Insurance  or Third Party Property Damage  Car Insurance, we consider all relevant factors involved, so we can do our best to give you a fair deal. If you need any more information on AAMI Car Insurance premiums, you can call us on 13 22 44 or compare your options online now.


Read more:


Insurance issued by AAI Limited ABN 48 005 297 807 trading as AAMI. Any advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it. Please read the relevant Product Disclosure Statement before you make any decision regarding this product. The Target Market Determination is also available. Information outlines current environment factors as at December 2021, and may not be indicative of future market influences.


The information is intended to be of general nature only. Subject to any rights you may have under any law, we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon the information. Please make your own enquiries.