3. A percentage increase or decrease is applied

A per cent increase or decrease is applied, according to ‘risk rating factors’ that relate to the vehicle,  the owner and information on who drives the vehicle.

Risk factors can include:

  • the age of the owner/driver and their driving record (eg number of at-fault crashes, insurance history, demerit points and no claims bonus)
  • the age of the vehicle

A higher risk group is one that has resulted in more claims in the past.

These are determined by each insurer within limits that are set and reviewed by us from time to time.