CAR INSURANCE RENEWAL GUIDE

Does your “last period premium” match what you actually paid?

A renewal notice can compare this year with last year, but the useful starting point is the amount that left your account for the same annual cover. The two figures are not always the same.

Check three numbers

  1. Actual paid: Find last year’s receipt or payment history. If you paid monthly, total the instalments and note any fees or mid-year changes.
  2. Shown prior premium: Find the “last period premium” or similar comparison figure in the renewal notice.
  3. New quote: Use the full amount payable for the next policy year, on the same payment basis where possible.

Subtract actual paid from the new quote to see the cash change. Separately subtract the insurer’s shown prior premium from the new quote. If the answers differ, ask the insurer which adjustments explain its displayed figure.

WORKED EXAMPLE

Paid last year: A$1,200. Shown prior premium: A$1,280. New quote: A$1,450. The change from actual paid is A$250 (20.8%); the notice’s comparison implies A$170 (13.3%). The A$80 difference needs an explanation; it does not by itself prove an error or overcharge.

Check your figures in the free calculator →

Before deciding what to do

Compare cover, excess, listed drivers, vehicle details, discounts and payment frequency. A cash difference is not a like-for-like price comparison if those changed. Ask the insurer to explain the calculation and obtain alternative quotes for comparable cover if you want to assess value.

ASIC’s 2025 court-action announcement describes allegations about misleading “last period premium” figures. Its 2026 premium-transparency report explains the wider disclosure issue. The Australian Financial Complaints Authority’s factsheet outlines factors relevant to premium complaints. These sources do not establish that your insurer made a mistake.

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Renewal Truth provides arithmetic and general information, not personal financial or legal advice.