Car insurance is categorised as a service provided by an insurance service provider. So, it comes under the purview of the Goods and Services Tax (GST). A flat rate of 18% GST is applicable on your car insurance premium.
The impact of the levy of GST on car insurance premium is that it directly leads to an increase in the premium you have to pay towards the policy. However, although the GST is an added expense, the benefits provided by a comprehensive car insurance policy far outweigh this negligible increase in the car insurance premium.
So, the next time you purchase or renew your car insurance, make sure to account for the effect of GST on the premiums.