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7.3 million Aussies to cop new $1,000 expense

Home and contents insurance premiums are rising in another blow to Aussies struggling to keep up with the rising cost of living.

Australian money piled on top of itself and a crowd of people walking down the street to represent insurance costs.
Aussies are forking out more on their home and contents insurance. (Source: Getty)

Millions of Aussies are being forced to pay more for their home and contents insurance, with a whopping 63 per cent reporting their premiums have gone up in the past 12 months.

The new Finder survey revealed a further 14 per cent of customers weren’t even aware their premiums had risen, while just over 22 per cent said they hadn’t been hit with higher costs.

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.

Finder insurance expert James Martin 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,” 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 managing editor Sarah Megginson revealed she recently saved $1,450 on her home insurance policy after her premium rose 33 per cent - from $3,300 to $4,400.

“I shopped around, it took me about an hour and I got a policy with the same coverage for $2,950,” she said.

“So I actually saved 10 per cent on my old policy and didn’t sacrifice any cover or benefits.”

Finder’s data found 60 per cent of Aussies protected themselves with a home and contents insurance policy. That's the equivalent of 11.8 million Australians.

Despite the cost of living going up, only 11 per cent of home insurance customers switched brands in the past six months.

Martin said it was more crucial than ever for Aussies to choose an insurer that would give them the best deal.

According to Finder’s Home Insurance Awards 2022, ANZ home insurance was the 2022 comprehensive winner, while Budget Direct took the top gong for value.

“ANZ home insurance comes with all the bells and whistles, plus it's the only insurer to offer full building replacement if yours is destroyed,” Martin said.

“Budget Direct is cheaper than most insurers and it covers most of the essentials such as fires, storms and theft - but not floods.”

Martin said switching things like car and home insurance every year was one of the best ways to protect your budget.

“We've been hit with a barrage of savings tips during the cost-of-living crisis – switching to supermarket brands, ditching streaming services, selling stuff online, the list goes on,” he said.

“These are quite helpful but there's an even bigger opportunity for savings if you look at your largest household expenses – such as your home loan, home, and car insurance costs.”

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