Yahoo Finance Millions of Aussies hit with extra $316 cost - others facing $570 annual hike
Aussies are spending $1,460 a year, on average, on home insurance premiums.
Aussies with home insurance are now forking out hundreds more a year, as insurers hike their premiums.
More than half of Aussies say they feel their expenses are “out of control”, with the average annual premium now $1,460 on average - an increase of roughly $316 per year.
Queenslanders have been hit the hardest, with research from Mozo finding annual premiums on average had skyrocketed to $1,629. That’s $348 more than they paid in 2022.
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Disappointed Australians already facing cost of living pressure - from the rising cost of a weekly grocery shop to filling up at the bowser - have shared details about the insurance increases they’d copped.
An AAMI customer said their premium for their home and contents insurance had jumped a “crazy” $570 a year despite them making no claims.
Their $1,513 is now $2,083 per year - a 37.6 per cent hike.
They have switched companies before but stuck with AAMI for the last couple years and are struggling to find a cheaper option.
“They're all ridiculously expensive these days,” they said.
‘Loyalty tax’ costing Aussies
Mozo money expert Rachel Wastell urged Aussies worried about rising costs to “face them head on”.
“No matter where you live in Australia, you’re likely paying hundreds of dollars more to insure your home than you were last year, so if you haven’t shopped around for a better deal now is the time to do so,” Wastell said.
“Blindly renewing your home insurance policy every year, without comparing providers and policies, means you could be paying what some are calling the loyalty tax, which in a cost of living crisis may not be the best way to spend your money.”
Think twice before cancelling
As costs rise, some Aussies may be considering cancelling their home insurance to save money. But it can be risky, particularly for those living in areas affected by natural disasters like bushfires and floods.
Mozo found nearly two in five Aussies who cancelled their policy in the last 12 months due to cost were living in areas affected by natural disasters.
“The amount of Australians that have resorted to cancelling their home insurance because they can’t afford it is shocking,” Wastell said
“But what’s more concerning is many are likely paying these rising premiums without realising they’re underinsured.”
Wastell recommended Aussies check their “sum insured” amount to ensure it will cover the cost of rebuilding your home and structures. Most insurers will have calculators to help you work this out.
4 tips to save
Increase your excess. This will reduce your premium but it’s important that you have the excess amount available should anything go wrong.
Buy your policy online. Look out for online discounts, multi-policy discounts or bundled insurance packages.
Increase your home security. Things like installing alarms, security screens and new locks can show insurers you’re less likely to be broken into.
Pay annually, instead of monthly. Check if your insurer offers a discount for this but make sure you read the fine print and cancellation policy.
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