Our pay-per-KM comprehensive car insurance premiums explained.

As a policyholder with KOBA Insurance, you pay two premiums. These premiums refer to a driving premium and an upfront fixed cost premium. When you get a quote online using the KOBA Insurance website, there are three rates shown; the upfront fixed cost, the per-KM rate and the annual estimate. Don’t worry, this doesn’t mean you pay three premiums! In this article, we define an insurance premium, explain how KOBA’s comprehensive car insurance policy works, detail the premiums shown on the quote, outline the factors affecting these premiums and explain the KOBA difference. 

What are car insurance premiums?

Car insurance premiums essentially represent the cost of car insurance. When you enter an insurance contract, the insurer agrees to provide you with car insurance cover. When the insurer provides cover for your vehicle, the risk of damages technically transfers from you to the insurer. As a policyholder, you might transfer a different level of risk to the insurer compared to other policyholders. To accommodate for the risk that the insurer onboards by covering your vehicle, you typically pay a car insurance premium. Your premium represents the cost of your policy, which reflects your risk to the insurance company.

Each policyholder may transfer a unique amount of risk to the provider and, therefore, may pay a unique premium to other policyholders. This is why your car insurance cost may differ from other policyholders. There are many factors that can influence your premium costs. For example, if you have an older vehicle, it may be seen to be more risky, in terms of insurance, compared to a new car with modern technology. 

How does KOBA Insurance work?

Before exploring KOBA’s premiums, it can be helpful to understand how our innovative comprehensive insurance actually works. Here at KOBA, we offer you a pay-per-KM insurance policy. This means you pay for an upfront fixed cost to cover your car while parked, and also pay for the kilometres you drive, rather than an estimate or rounded figure. We’re able to calculate your exact kilometres thanks to our advanced telematics technology, known as the KOBA Rider or through Uber Carshare’s Instant Keys GPS device. These are both small devices that collects ‘behind-the-wheel’ data, which we utilise to calculate your kilometres travelled.

The KOBA Rider also collects  other data that might help us process claims more efficiently. It’s important to understand the KOBA Rider only collects your vehicle data, not your conversations or personal details. Here at KOBA, we understand how important data privacy is to our valuable policyholders. We have a strict code of conduct and excellent security systems that ensure your data is safe and secure.

What are the KOBA car insurance premiums?

Now you know how KOBA Insurance works, it’s time to dive into our premiums! As a policyholder with KOBA, you pay two premiums; a driving premium and an upfront fixed premium. When you gain a quote through KOBA Insurance, you might notice a third premium, which is your annual estimated premium. It’s important to note that this comprises both the driving and upfront fixed premiums. It’s not a third premium you have to pay. Below, you can explore more details on our policy’s premiums:

Upfront Fixed premium

Your upfront fixed premium is to cover your vehicle when you’re not using it, such as when it’s parked in your garage or driveway. When you gain a quote online, you may see this premium as the Upfront Fixed Cost. As the name suggests, you pay this premium upfront when you begin your policy with us and at the point of your policy’s renewal, which is annual. This premium also includes the KOBA admin fee. The fee is to cover the administration process of collecting, processing and storing your data. 

Driving premium

The driving premium is where KOBA believes we do things uniquely compared with other providers. It might seem like paying two premiums is worse than paying one, but the reality is quite different! Your driving premium covers your vehicle while you’re driving it. We calculate this premium by applying your per KM rate to the exact number of kilometres you drive. This per KM rate is from a few cents per kilometre. So, if you drive 500KM a month, your driving premium for the month might be $35 for that month.

Annual estimated premium

The third premium shown when you gain a quote is the annual estimated premium. This isn’t a third premium you pay on top of the driving and fixed premium. This is simply an estimate of how much you can expect to pay for your comprehensive insurance. Your annual estimated premium comprises your upfront fixed cost and driving premium. The reason it’s an estimate is that your driving premium is subject to the number of kilometres you drive. Your estimated annual premium can be an excellent way to determine if our policy is right for you. It may also show you how much money you could save as a policyholder with KOBA.

What are the factors affecting premiums?

So, you probably now understand that we calculate your driving premium by multiplying your per-KM rate by the number of kilometres you travel. But you might wonder how we calculate your per KM rate and fixed premium

Below, you can explore the typical factors affecting your per KM rate and fixed premium:

  • the make and model of your car

  • your car’s agreed value

  • where you store your car, such as a garage or carport

  • the age of the drivers on your policy

  • the gender of the drivers on your policy

  • the claims history of the drivers on your policy

  • how you use your car, such as personal or business use

  • whether you completely own your car or if it’s financed

  • goods and service tax (GST)

  • other applicable government charges

  • several underwriting criteria, such as residential status

The KOBA Insurance solution

If you’re in the market for a comprehensive car insurance policy, consider KOBA Insurance. With our advanced telematics technology and commitment to providing what we believe are fair and accurate premiums, our comprehensive coverage might provide you with peace of mind. 

Get a quote online, today.


Any advice provided on this site is general advice only and does not take into account your individual needs, objectives or financial situation. Terms, limits, conditions and exclusions apply. Before making a decision, you should carefully read the Product Disclosure Statement & Financial Services Guide (PDS & FSG), and the Target Market Determination (TMD), which are available at www.kobainsurance.com.au to help you decide if the product is right for you. If you purchase a policy, KOBA receives a commission, which is a percentage of your premium, and may be entitled to a profit share if certain thresholds are met in agreed periods. Please ask us for more details.