4 min read · Updated . Reviewed by James Rock (National Partnerships Director).
On this page 8
- What does equipment insurance cost? Four real examples
- Why does a mini excavator cost more per dollar than a big one?
- What sets the price?
- What does paying monthly add?
- How does the cost compare with the finance?
- Why have premiums been rising?
- How to get your own figure
- Get an insurance indication for your machine
What does equipment insurance cost? Four real examples
| Machine | Insured value | Premium for 5 years | Per year | Share of value |
|---|---|---|---|---|
| Excavator (over 7 tonnes) | $171,700 | $5,511 | $1,102 | 3.2% |
| Mini excavator | $55,209 | $4,310 | $862 | 7.8% |
| Truck trailer | $141,977 | $11,190 | $2,238 | 7.9% |
| Telehandler | $703,150 | $21,556 | $4,311 | 3.1% |
These are real premiums from current policies through our specialist insurance partner, supplied in August 2026 and fixed for the whole five years. They include GST. Yours depends on your own five details, so treat them as a guide to the range, not a price list.
Why does a mini excavator cost more per dollar than a big one?
Two of the four examples sit around 3% of value over five years and two around 8%. The cheaper, lighter machines sit at the higher end. Smaller plant is easier to steal, moves between sites more often and is more likely to be hired out, and the fixed costs of a claim, such as assessing and recovering a machine, are the same whatever it is worth. A trailer spends its life on the road, which is where most damage happens.
What sets the price?
Through EquipCover, five details and nothing more:
| Detail | How it moves the premium |
|---|---|
| State | Where the machine is based. Stamp duty on insurance runs from 7% in Victoria to 11% in South Australia, and claims experience differs too. |
| Equipment type | From the approved list of more than 40 item types. Type matters more than make. |
| Value ex GST | The insured value. The premium is a share of it, and that share is higher for cheaper machines. |
| Term | 12 to 60 months. The premium is set once for the whole term, so a longer term locks the price for longer. |
| Registration | Unregistered, conditionally registered or fully registered. Registered machines use public roads, which changes the risk. |
There’s no proposal form covering years of claims history, and the premium isn’t re-rated at renewal for claims, inflation or market movements during the term. That’s the difference from an annual policy: multi-year vs annual compared.
What does paying monthly add?
Paying by the month means an initial payment, then equal monthly payments for the rest of the term. It costs from 12.99% a year more than paying upfront, and higher on shorter terms, plus a one-off admin fee worked out from the premium and capped. Your indication shows each amount and the total. It isn’t a loan, so there’s no application and no credit check, and if you stop paying, the cover stops. Paying monthly vs premium funding.
How does the cost compare with the finance?
On the $171,700 excavator financed over five years at 8.09% (the RBA’s average fixed rate on new small business loans, August 2026), the finance repayment is about $3,489 a month and the insurance works out at about $92 a month if paid upfront. Paid by the month it costs more, from 12.99% a year extra. Either way, the insurance is a small share of the monthly cost of owning the machine. Try your own numbers in the equipment finance calculator.
Why have premiums been rising?
Insurance prices paid by Australian households rose 47.9% in the five years to June 2026, about double the rise in all prices. The drivers the Insurance Council names, natural disasters, the rising value of insured assets and higher repair costs, apply to equipment too. A fixed multi-year premium takes those rises out of the equation for the term. Why premiums keep rising.
How to get your own figure
An insurance indication takes about 90 seconds: your ABN and the five details above, with the premium on screen, including GST. It isn’t a quote or an offer of insurance; our specialist insurance partner follows up the same day with the e-brochure and policy wording.
Get an insurance indication for your machine
Get your insurance indication in about 90 seconds.
Frequently asked questions
How much does equipment insurance cost in Australia?
In real examples from current five-year policies, between about 3% and 8% of the insured value over five years: $5,511 on a $171,700 excavator, $11,190 on a $141,977 truck trailer.
How much does excavator insurance cost?
A real example: $5,511 for five years on an excavator insured for $171,700, about $1,102 a year. A mini excavator insured for $55,209 was $4,310 for five years.
What decides the premium?
Five details: state, equipment type, value ex GST, term and registration. There’s no claims-history proposal form.
Does paying monthly cost more?
Yes: from 12.99% a year more than paying upfront, and higher on shorter terms, plus a one-off admin fee worked out from the premium and capped. It isn’t a loan, and there’s no application or credit check.
Can the premium be re-rated during the term?
No. It’s set once for the term you choose, from 12 to 60 months, and isn’t re-rated for claims or market movements in that time. The insured value is 100% in years 1 and 2, then a 10% depreciation is applied each year from year 3.
Sources
- Product information and approved item list from our specialist insurance partner (August 2026)
- Reserve Bank of Australia: Statistical table F7, Business lending rates (published 8 October 2026)
- Australian Bureau of Statistics: Consumer Price Index, insurance (quarterly series to June 2026; monthly release September 2026, published 28 October 2026)
- Insurance Council of Australia: Insurance Catastrophe Resilience Report 2023-24
General information only, not personal advice. Read the policy wording before you buy.
