Homeowners May Save Around $800 Despite Increasing Insurance Rates

Home and contents insurance premiums have surged higher across the country according to new research, but experts say switching providers could ease the pain.

Canstar has found the average annual premiums for new home and contents policies have jumped 14 per cent, or $343, in the past year.

“We looked at over 25,000 different home and content insurance quotes across the country to understand what represents value for money, not just on price, but also on features as well,” Canstar Director of Research and Public Relations Sally Tindall said.

The research suggested that the average household could save about $766 just by switching from a market average policy to one of Canstar’s five-star picks — AAMI, Allianz, QBE or Westpac.

Homeowners in the Northern Territory could save the most of about $1172, followed by $921 in Queensland, $732 in New South Wales and $670 in Tasmania. 

They can also save $649 in Western Australia, $635 in Victoria and $608 in South Australia. 

“Unfortunately, time and time again, across all sorts of financial products, we see that loyal customers get the raw end of the deal and new customers get the shiny big discounts,” Tindall said.

It also means that homeowners may need to switch again the following year, to continue to save on those policies.

Nine’s money editor Effie Zahos has some tips.

She says homeowners should not take the first offer and, instead, compare their new premium to what they paid the previous year.

Homeowners should also check the price their existing insurer is offering to new customers and weigh up the trade-off between a lower premium and a higher excess.

And, finally, they should be aware that bundling multiple policies with the same insurer is not necessarily cheaper. 

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