Renewing car insurance

Your car insurance premium can increase for several reasons, even if your personal circumstances haven't changed.

Reasons can include:

Rising repair costs: This includes the increasing cost of car parts and labour.

Changes in local factors: This can include shifts in crime and accident rates for your area.

More frequent severe weather: Events like storms, floods, and bushfires are leading to more claims.

Changes to your circumstances: This includes factors like making a claim or changes to your accident and claim history.

Changes to discounts: This includes any discounts that were previously applied but no longer apply, such as introductory offers.

Adjustment to your Sum Insured: This reflects any changes to your car's underlying value.

Changes in government charges: This includes any applicable taxes, levies, or other government charges.

Our business costs: Like any business, our operating costs can also change.

We adjust our premiums to make sure we can be there for you and all our customers when you need us most.

Your car insurance premium can increase for several reasons, even if you haven't made a claim. We assess various factors that impact the likelihood of future claims across the community, not just your personal claims history.

Reasons can include:

Rising repair costs: This includes the increasing cost of car parts and labour.

Changes in local factors: This can include shifts in crime and accident rates for your area.

More frequent severe weather: Events like storms, floods, and bushfires are leading to more claims across the community.

Changes to your policy details: This includes factors like changes to where your car is garaged, who drives it, or how it's used.

Changes to discounts: This includes any discounts that were previously applied but no longer apply, such as introductory offers.

Adjustment to your Sum Insured: This reflects any changes to your car's underlying value.

Changes in government charges: This includes any applicable taxes, levies, or other government charges.

Our business costs: Like any business, our operating costs can also change.

We adjust our premiums to make sure we can be there for you and all our customers when you need us most.

Your car insurance price may have gone up because most of our car insurance claims result in cars being repaired, rather than being written off. The costs to repair cars include labour, supplies and car parts.

While car values generally decrease over time, the costs associated with repairing cars after an accident, including labour, replacement parts and materials costs, tend to go up in line with inflation.

Yes, it is cheaper to pay your insurance premium annually. By paying annually (instead of in fortnightly or monthly instalments), you’ll pay a lower premium and avoid paying instalment processing fees.

Tip: If your policy is paid in instalments but you would like to pay the remaining premiums during the term, you can contact us at any time to pay the remainder of the term in a lump sum by avoiding further instalment fees.

There are several factors that can influence your Budget Direct car insurance premium, including:

Your car: This includes its make, model, age, value, performance, and security features.

Where you keep your car: This covers where your car is usually garaged or parked overnight.

Your location: The area where your car is primarily kept, as some areas have higher risks of theft, accidents, or severe weather.

The drivers: Factors like the age, driving experience, and claims history of all listed drivers.

How you use your car: This includes how many kilometres you drive each year and whether you use your car for private or business purposes.

Your chosen excess: Generally, a higher excess means a lower premium, and vice-versa.

Optional covers: Any extra covers you choose to add to your policy.

Discounts, fees, and government charges: This includes any discounts that apply, administrative fees, and applicable government taxes or levies.

For more details, read our article about the cost of insurance.

There are several ways you could reduce your car insurance premium, including:

• Increase your excess - You can choose from a range of excesses. When you increase your excess, you could also lower your premium. This means you would pay a higher excess in the event of a claim. It’s important to choose an excess you’ll be comfortable to pay at claim time.

• Pay your premium annually - By paying annually (instead of in fortnightly or monthly instalments), you’ll pay a lower premium and avoid paying instalment processing fees.

• Check who’s covered to drive your car. You could restrict your policy to only cover drivers that are over 21, 25, 30, 40 and 50 years of age. The higher the age restriction, the lower your premium will be.  Important - remember that any household members who may drive your car need to be listed as drivers on your policy for them to be covered.

• Review policy options - You can consider which optional benefits are still important to you, and if you are paying for things you no longer need.

Read more about how to save on car insurance.

No - but we do offer a free rewards program, Budget Direct Rewards to our loyal customers who hold two or more insurance policies. Through this program you can access a wide range of everyday savings and exclusive offers.

You can pay your Budget Direct renewal premium by direct debit from your bank account, credit card, or debit card.

You can pay fortnightly, monthly or annually (the last option will have the lower premium).

You can update your payment details by logging into your online Policy Manager. Click or tap the ‘View/Change Payment Details’ or ‘Payment Details’ button. Follow the prompts.

If you miss a renewal premium payment we’ll send you a missed payment notification via SMS, advising you of how to catch up on your payment.

To pay your overdue premium you can either: 

• Tap the link in the text message and follow our instructions

• Log into your online account and follow the prompts.

Your policy renewal will be completed and your cover will not be impacted as long as you make the payment within 14 days from the renewal date.

Please be aware:

• If an instalment is overdue by 14 days or more, we can refuse to pay a claim.

• If an instalment is overdue by one month or more, the policy is cancelled automatically without further notice to you.

If you chose to opt out of automatic renewal, and you did not provide your payment details and authorise payment before the expiry date, your cover will expire.

To get covered again, you'll need to get a new policy. Please note the premium may be different. If the new premium is higher than your previous renewal offer, we cannot match the price of your original renewal offer unless:

• All of the details match, and

• You contact us within seven calendar days of the policy expiry date.

No, we are unable to accept payment before the renewal date.

If your policy is set to renew automatically, we will deduct the renewal premium from your nominated account on, or just after the renewal date.

You can check your payment details are up to date through your online account.

If you have opted out of automatic policy renewal and you want to renew for another year, then you must let us know if you’d like to renew and make the payment before your policy expires. If we don't hear from you before the expiry date of your policy, we’ll assume you no longer want the policy and your cover will expire.

To accept your renewal offer please log into your online account to review your details and confirm you’d like to renew your insurance policy. Or you can contact us.

If we offer to renew your policy, we will send your renewal offer at least 14 days before your renewal date.  When you receive your renewal offer, you should check all the details to see if anything has changed or needs to be updated.

You can make most updates or changes online using your online account before the renewal date.

Your renewal method and what you need to do is explained in your renewal offer. 

Automatic renewal and payment:

• If your details in the Renewal Offer are complete and accurate, you don’t need to do a thing.

• Your insurance policy will renew automatically.

• We will deduct the renewal premium from your nominated account on, or just after the payment is due.

If you have opted out of Automatic Renewal:

• You need to let us know if you’d like to take up the renewal offer before your policy expires.

•  If we don't hear from you before the expiry date of your policy, we’ll assume you no longer want the policy and your cover will expire

• You can renew your policy online using your online account.

For your convenience, most policies are set to renew automatically, reducing the risk of your car insurance cover ending unexpectedly.

If we offer to renew your policy for another term, we will normally send your renewal offer at least 14 days before your renewal date, providing time for you to make any changes, or let us know if you don’t want to renew the policy.

If your policy renews automatically, your cover will continue as long as you keep paying your premiums. If your policy has renewed and you did not want this to happen, you can cancel your policy within 21 days of the renewal date, and receive a full refund if no claim has been made.

If you have opted out of automatic renewal and payment, you can renew your cover by logging into your online account.

Yes – you can opt out of automatic renewal

This means at the end of the next term, your policy will end, unless you choose to renew it. Alternatively, you can simply cancel the policy at the end of its term.

To opt out, please contact us.

Yes, a cooling-off period applies to both new and renewing Budget Direct car insurance policies.

The cooling-off period starts on the date your policy renews and lasts for 21 days.

If you change your mind within that time, you can cancel your policy, and if you haven’t made a claim, you can get a refund of any premium paid within the cooling-off period.

If we offer to renew your policy we will send your renewal offer at least 14 days before your renewal date.

We'll send it to you using the preferred delivery method you have nominated, which is either the postal or email address which we hold on your records.

If you haven't received your renewal offer, then we may not have your most up to date contact details. You can check and update your contact details online using your online account.

Tip: If you are looking for an email from us, you should check your email junk folder first.

It’s important to keep us informed of any changes and when your policy is up for renewal is a great time to do it.

When you receive your renewal offer, you should check all the details, particularly the ‘Your Renewal Details’ and ‘Your Declarations’ sections. Check your payment details and let us know, as soon as practicable, if any information, including your previous answers to our questions, is incorrect or if anything else needs updating.

You may also wish to review your policy for ways to save on premiums. For more info see (website link, new Renewals landing page).

Among the things you can change on your Budget Direct car insurance policy are:

• contact details
• payment details
• listed drivers
• driver-age restrictions
• kilometres driven per year
• excess (Basic)
• car details (e.g modifications)
• driving and claims history.

Note that you can reduce your window-glass excess only within 21 days of buying your policy, renewing it, or transferring it to a replacement vehicle.

You can change many of these policy details yourself by logging into your online account.

Tip: Some changes can be made online which are effective at the renewal date, others may need to be made to the current policy.

If you need any help you can contact us.

When you make changes, your renewal premium may increase or decrease. This is due to a change you made being a factor which affects how your policy premium is calculated.

We’ll also send you either an updated renewal offer or new policy documents confirming the changes.

There are some policy details you cannot edit yourself when the policy is due to renew.  These are indicated by a padlock symbol.

For help to change these details, please contact us.

A convenient and easy way to cancel your insurance policy (even if it was renewed recently) is by logging into your online account.

Keep in mind that you have a 21-day cooling-off period from the policy purchase and the policy renewal date. If you change your mind within that time, you can cancel your policy and get your policy renewal payment fully refunded (if you didn’t make a claim).

If you change your mind outside of the 21 day cooling off period, we will refund the unused portion of the policy but a $40 early cancellation fee may be charged.

Here’s how you can cancel your policy online:

Tap or select the policy you want to cancel

Tap or select ‘Cancel’ to cancel your policy

You can also contact us via live chat if you need more support.

You can cancel your policy within 21 days of both buying and renewing it. Within this cooling-off period you will receive a full refund of your premium payments for the term of insurance (as long as you have not made a claim).

If you change your mind outside of the 21 day cooling off period, we will refund the unused portion of the policy but a $40 early cancellation fee may apply.

• Within 21 days (the 'cooling-off' period): You have 21 days from the date you renewed your policy to cancel it. If you cancel during this time and haven't made a claim, you'll get a full refund of what you've paid.

• After 21 days: If you decide to cancel after this 21-day period, we will refund you for the part of the policy you haven't used. However, a $40 early cancellation fee may apply.

You can cancel your policy online using your online account or contact us.

If you cancel your policy more than 21 days after your policy has renewed (the cooling-off period), an ‘early cancellation’ fee of $40 may be charged.

You can cancel your policy by logging into your online account or contact us.

If you miss a payment and your policy is cancelled as a result, we cannot reinstate the policy and honour the original price.

We will always notify you promptly of missed payments and attempt to contact you to make up the payment before we cancel your policy.

To get replacement cover, you'll need to complete a new quote and if cover is approved, pay for and start a new 12 month insurance policy.