3 min read · Updated . Reviewed by James Rock (National Partnerships Director).
On this page 9
- What is multi-year equipment insurance?
- How is an annual policy priced over a finance term?
- Multi-year vs annual, side by side
- How much have insurance prices moved?
- What does a fixed premium actually fix?
- Who is multi-year cover for?
- When is annual cover the right call?
- How do you switch from annual to multi-year cover?
- See what a fixed premium looks like for your machine
What is multi-year equipment insurance?
A multi-year policy covers business equipment for more than one year, here for a term you choose from 12 to 60 months. The premium is set once, on day one, and isn’t affected by claims, inflation or market movements for that term. It’s built around asset finance, so the policy can run for the same term as the loan.
How is an annual policy priced over a finance term?
An annual policy is priced for 12 months. At renewal it’s re-rated for inflation, changes in the insurance market and your claims history, then priced again the next year. Over a five-year loan that’s four re-ratings, each a new price you can’t know in advance.
Multi-year vs annual, side by side
| Feature | Typical annual policy | Fixed multi-year policy |
|---|---|---|
| Premium over the finance term | Re-rated every 12 months for inflation, market changes and claims history | Fixed for up to 5 years from day one |
| Process | A quoting and renewal cycle each year | Online and paperless; certificate of currency in about 5 minutes |
| Paying for it | Often paired with premium funding, an added finance cost | Upfront, monthly, or included in the finance with participating lenders |
| Admin | A renewal conversation every year | One policy for the life of the finance |
| Older or used assets | Can be harder to place | New or used, up to 40 years old |
How much have insurance prices moved?
| June | Insurance | All prices |
|---|---|---|
| 2021 | 100.0 | 100.0 |
| 2022 | 103.2 | 106.2 |
| 2023 | 117.7 | 112.6 |
| 2024 | 134.2 | 116.9 |
| 2025 | 139.5 | 119.4 |
| 2026 | 147.9 | 124.1 |
Those are household insurance prices, which the ABS measures. They show the pressure an annual renewal carries. Why premiums keep rising.
What does a fixed premium actually fix?
The price. The premium for the whole term is set on day one and doesn’t move with claims, inflation or the market. It doesn’t make every year identical: the insured value is 100% in years 1 and 2, then a 10% depreciation is applied each year from year 3. What the policy covers, its limits and its exclusions are in the policy wording, so read it as you would any policy.
Who is multi-year cover for?
- Businesses buying equipment on finance, matching cover to the loan term.
- Equipment bought in the last 60 months: up to five years of cover.
- Equipment used wholly or predominantly for business, anywhere in Australia.
- Items on the approved list, up to $2 million per policy, with more than one policy allowed.
When is annual cover the right call?
- The equipment isn’t on the approved item list.
- It’s used mainly for private purposes. Multi-year cover here is for business use only.
- You bought it more than 60 months ago and aren’t financing it now.
How do you switch from annual to multi-year cover?
If you bought the equipment in the last 60 months, get an insurance indication now. If you’re buying new equipment, get one before the finance settles, so the certificate of currency is ready when the lender asks. Keep your annual policy until the new one is in place.
See what a fixed premium looks like for your machine
Get your insurance indication in about 90 seconds.
Frequently asked questions
How long can a multi-year equipment policy run?
Up to five years. You choose a term from 12 to 60 months.
Does a claim change a multi-year premium?
No. The premium is locked for the term and isn’t affected by claims, inflation or market movements.
Is multi-year cover only for financed equipment?
No, it’s designed around asset finance, but it also covers equipment bought outright without finance, and the premium is the same either way.
Can I cover older equipment on a multi-year policy?
Yes. New or used equipment up to 40 years old can be covered.
Is annual cover ever better?
Yes, when the equipment isn’t on the approved list or isn’t used for business.
Sources
- Product information and approved item list from our specialist insurance partner (August 2026)
- Australian Bureau of Statistics: Consumer Price Index, insurance (quarterly series to June 2026; monthly release September 2026, published 28 October 2026)
General information only, not personal advice. Read the policy wording before you buy.
