Worked quotes and renewal checklists
Renewal notice vs new car insurance quotes: a worked comparison
A full worked example comparing an Australian car insurance renewal with two new comprehensive quotes, adjusting for excess, agreed value, extras and a claim.
To compare a car insurance renewal with new quotes properly, line them up on identical details, then adjust for four things: extras you want but a quote leaves out, the excess that would apply to your household's drivers, the insured value in a write-off, and conditions such as storm waiting periods or hire car limits. The cheapest headline premium wins only if it still wins after those adjustments. Below is a complete example with illustrative figures.
This guide is part of the car insurance renewal checklist. All figures are illustrative, not market prices.
The household
- Brisbane suburb, car parked in a carport
- Car bought new four years ago; similar cars currently sell for about $25,000
- Two listed drivers: Sam (44) and Alex (21, licensed for three years)
- Comprehensive cover wanted, with a hire car after an accident because it is the only car
Step 1: the renewal as baseline
| Item | Renewal notice |
|---|---|
| Premium (12 months, incl. GST and duty) | $1,620 (last year $1,410) |
| Basic excess | $750 |
| Age excess for drivers under 25 | $1,000 extra |
| Insured value | Agreed value $25,000 |
| Hire car after an at-fault accident | Included, up to 14 days |
Step 2: two new quotes with the same details
| Item | Quote A | Quote B |
|---|---|---|
| Premium | $1,355 | $1,480 |
| Basic excess | $1,000 | $750 |
| Age excess under 25 | $1,600 extra | $800 extra |
| Insured value | Market value | Agreed value $24,000 |
| Hire car after at-fault accident | Optional, +$90 | Optional, +$75 |
Headline order: A ($1,355), B ($1,480), renewal ($1,620).
Step 3: add the extras you want
- Quote A with hire car: $1,355 + $90 = $1,445
- Quote B with hire car: $1,480 + $75 = $1,555
- Renewal: $1,620
The gap between A and the renewal has shrunk from $265 to $175.
Step 4: test a claim by each driver
Total excess for an at-fault claim:
| Driver at fault | Renewal | Quote A | Quote B |
|---|---|---|---|
| Sam | $750 | $1,000 | $750 |
| Alex | $750 + $1,000 = $1,750 | $1,000 + $1,600 = $2,600 | $750 + $800 = $1,550 |
Cost in a year with one at-fault $5,000 repair (premium with hire car + excess):
| Driver at fault | Renewal | Quote A | Quote B |
|---|---|---|---|
| No claim | $1,620 | $1,445 | $1,555 |
| Sam | $2,370 | $2,445 | $2,305 |
| Alex | $3,370 | $4,045 | $3,105 |
With no claim, A is cheapest by $110 over B. With one claim by Sam, B is cheapest. With one claim by Alex, B is $940 cheaper than A. Because the household has a young driver, Quote A's low premium comes with the most expensive claim.
Step 5: test a write-off
If the car is written off and is valued at $25,000 at the time:
- Renewal pays $25,000 less excess.
- Quote A pays market value as assessed on the day. If the insurer assesses $23,800, it pays $1,200 less than the renewal.
- Quote B pays its agreed $24,000, which is $1,000 less than the renewal.
Total loss with Sam driving, net cost (premium with hire car + excess + shortfall compared with $25,000):
- Renewal: $1,620 + $750 + $0 = $2,370
- Quote A: $1,445 + $1,000 + $1,200 = $3,645
- Quote B: $1,555 + $750 + $1,000 = $3,305
You can ask Quote B's insurer whether it can offer a higher agreed value. Values are set by the insurer, so it may not. See agreed value vs market value.
Step 6: read the small print that changes the result
| Check | Why it matters here |
|---|---|
| Waiting period for storm, hail or flood on new policies | Brisbane has hail seasons; a new policy may not cover storm damage in its first days unless it replaces existing cover with no gap |
| Choice of repairer | Some policies use the insurer's network unless you pay more |
| Hire car limits | Daily cap and number of days |
| Windscreen excess | Some policies charge a separate excess or offer one free claim |
| Cancellation fee | Matters if you might sell the car |
Step 7: decide
On these figures, Quote B is the strongest overall: $65 cheaper than the renewal with no claim, cheaper with a claim by either driver, and only $1,000 below the renewal in a write-off. Quote A is cheapest only if nobody claims. The renewal is the safest in a total loss but costs the most each year.
A reasonable next step: ring the current insurer with Quote B in writing and ask for a review. If it cannot offer a comparable price, take Quote B with a start date matching the old policy's expiry and confirm that storm cover applies from the start because there is no gap. Enter your own figures in the quote comparison tool.
Before deciding, consider whether a higher excess on the renewal would close the gap, as explained in choosing your excess, and how a claim would affect each insurer's no claim bonus.
Frequently asked questions
Why not just pick the cheapest premium?
Because the excess, insured value and extras decide what you pay in a bad year. The cheapest premium is often cheap because it shifts more of a claim to you.
Do comparison sites show the age excess?
Some do, some show only the basic excess. Always check the PDS or the quote summary for age and inexperienced driver excesses.
Is the renewal notice price final?
It is the insurer's offer. You can ask for a review, change the excess or extras, or update details that affect the price.
How do I compare a market value quote with an agreed value quote?
Estimate the market value from current listings for similar cars and test a write-off as in Step 5.
Sources
- Moneysmart — comparing car insurance quotes
- ASIC — PDS and renewal rules
- Australian Financial Complaints Authority — disputes about value or excess
- Insurance Council of Australia — catastrophe and storm information
