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Buying a new car? Here’s how it may impact your premium


Choosing a new car is as exciting as it is daunting – it gets you thinking about more than just the price on the sticker. Your new ride will probably affect your car insurance premium – even if you park it in the same space, drive the same routes and have the same AAMI Safe Driver Rewards. Here, we uncover the factors that could affect your insurance premium, so you can keep them in mind when buying your new car.

You’re buying a more (or less) expensive car

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.

You’re buying a newer (or older) vehicle

The age of your vehicle can affect your car insurance premium in several ways, and newer does not necessarily always mean more expensive. While it may make sense that an older car is worth less, resulting in a lower premium, keep in mind that it can sometimes be difficult and expensive to source parts for older cars. This being the case, you may have to pay a higher premium to cover the potential cost of repairs.

You’re buying a juiced-up 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, so they can be slightly more to insure. You can find out how much AAMI Car Insurance may cost by comparing options and getting a quote online.

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Calculating car insurance premiums is no easy feat

When we underwrite your insurance policies, whether you opt for Comprehensive Car Insurance or Third Party Car Insurance, we make sure to consider all the 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.

Insurance issued by AAI Limited ABN 48 005 297 807 trading as AAMI. AAMI Roadside Assist is an Optional Cover only available in conjunction with AAMI Comprehensive Car Insurance. 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.