A premium hike can cost upwards of $1,000 a year — an expense many Aussies may not be able to afford given the rising cost of living.
A whopping 63 per cent of Aussie home and contents insurance customers — equivalent to 7.4 million people — said their premiums have gone up in the past 12 months, according to a new Finder survey.
The research found a further 14 per cent of customers are unaware if their premiums have gone up, while just over one in five (22 per cent) said they hadn’t been hit with higher costs.
James Martin, insurance expert at Finder, said there was little to no cost benefit for staying loyal to home insurers.
“The best deals are typically offered to new customers when they sign up online,” Mr Martin said.
“Insurers often offer discounts of up to 30 per cent for new customers, so it absolutely pays to shop around each year.
“You can also call your insurer and ask them to price-match or give you the best possible deal. It doesn’t always work, but it’s worth a shot — they’ll often do what they can to keep your business.”
Finder’s data showed 60 per cent of Aussies protect themselves with some form of home insurance. That’s the equivalent of 11.8 million Australians.
Despite the cost of living going up, only 11 per cent of home insurance customers have switched brands in the last six months.
Mr Martin said it was now more crucial than ever for Aussies to choose an insurer that would give them the best deal.
Meanwhile, for people living in northern Australia, insurance affordability remains a significant issue according to the first insurance monitoring report issued by the Australian Competition and Consumer Commission (ACCC).
The report found that policyholders in those regions face much higher premiums on average and that those premiums have increased much more quickly than for the rest of the country over the past decade.
The report found that in 2021–22:
- The average premium for residential combined building and contents insurance in northern Australia was about $2,370 (US$1,594), more than $1,000 above the average across the rest of Australia.
- The average premium for strata insurance in northern Australia was about $5,740, almost double that of the rest of Australia (about $2,940).
- The average premium for small-business building and contents insurance in northern Australia was about $3,160, almost double that of the rest of Australia (about $1,610).
