Is it good to shop around for home insurance? Here’s what actually saves you money

Every year, millions of Australians renew their home insurance without even checking if they’re paying too much. It’s easy to do. The renewal notice arrives in the mail, you glance at the price, sigh, and hit "pay." But here’s the truth: shopping around for home insurance isn’t just a good idea - it’s one of the easiest ways to save hundreds of dollars a year.

Let’s say you’ve been with the same insurer for five years. Your premium went up 8% last year. You didn’t think much of it - you assumed that’s just how insurance works. But what if you found out that a new provider offered the exact same coverage for 30% less? You’d feel pretty silly, right? That’s not a hypothetical. That’s what happens when people don’t compare.

Why most people don’t shop around

There are three big reasons people stick with the same home insurer year after year:

• It feels easier. Renewing takes 2 minutes. Comparing policies takes 20.
• They think loyalty pays off. Many believe insurers reward long-term customers with discounts. In reality, they often reward them with higher prices.
• They’re confused by policy details. "All-risk" vs "specified-perils"? Excess amounts? Contents limits? It’s a maze.

But here’s the thing: the effort isn’t that hard. And the payoff is real.

How much can you actually save?

In 2025, a study by the Australian Competition and Consumer Commission (ACCC) found that people who switched home insurance providers saved an average of $417 per year. The top 10% saved over $800. That’s not pocket change. That’s a family holiday. Or a new fridge. Or paying off your credit card.

One Sydney homeowner, Maria, had been paying $1,280 a year for her 3-bedroom house in Marrickville. After comparing just three quotes, she switched to a provider that offered identical coverage - including storm, fire, and flood protection - for $790. She didn’t change a single thing about her house. She just stopped overpaying.

What you need to compare

Not all policies are created equal. You can’t just look at the price. You need to compare these five key things:

1. Sum insured - This is the maximum amount the insurer will pay to rebuild your home. Many people underestimate this. If your home is worth $750,000 to rebuild, but you’re only insured for $500,000, you’re underinsured. That’s a big risk.
2. Contents cover - How much are your furniture, electronics, and clothes worth? Most people guess. Take 10 minutes and list your top 10 most valuable items. Add them up. Then add 20%.
3. Excess - This is what you pay out-of-pocket when you make a claim. A lower excess means higher premiums. A higher excess means lower premiums. Choose wisely. If you can afford a $1,000 excess, you might save $200+ a year.
4. Covered perils - Does the policy cover flood? Storm? Earthquake? Bushfire? Some insurers exclude flood unless you pay extra. In Australia, that’s not a luxury - it’s essential.
5. Additional benefits - Some policies include things like temporary accommodation after a fire, emergency plumbing, or replacement of stolen keys. These sound small, but they can save you thousands in a crisis.

How to shop around (the easy way)

You don’t need to call five insurers. You don’t need to fill out five forms. Here’s how to do it in under 15 minutes:

1. Grab your current policy document. Note down your sum insured, contents value, excess, and covered perils.
2. Use one of Australia’s top comparison sites: Compare the Market, Finder, or Canstar. They’re free and don’t require personal details upfront.
3. Filter for policies that match your current coverage exactly.
4. Sort by price. Look at the top three options.
5. Click through to each insurer’s site. Read the fine print. Make sure nothing’s missing.
6. Switch. Most insurers let you cancel your old policy and start the new one on the same day.

Pro tip: Do this 2-3 weeks before your renewal date. That’s when insurers often offer discounts to new customers.

When not to switch

There are rare cases where sticking with your current insurer makes sense:

• You’ve built up a no-claims discount over 10+ years. Some insurers let you keep it even if you switch, but not all.
• Your home has unique risks (e.g., heritage listing, old wiring) and your current insurer understands them.
• You’ve had a smooth claims experience - they paid quickly, didn’t argue, and treated you fairly.

Even then, it’s worth getting a quote. You might find a better deal. Or you might confirm your current insurer is still the best.

The hidden cost of not shopping around

The biggest cost isn’t the extra money you pay each year. It’s the stress you feel when you need to make a claim and realize your policy doesn’t cover what you thought it did.

One Melbourne family found out too late that their policy didn’t cover water damage from a burst pipe because it was labeled "gradual damage." They had to pay $18,000 out of pocket. They’d been with the same insurer for 12 years. Never checked the details.

Shopping around isn’t about distrust. It’s about being informed. Insurance is a contract. You have the right to know exactly what you’re paying for.

What to do next

Here’s your simple plan:

• Today: Pull out your current home insurance policy.
• Tomorrow: Go to Compare the Market or Finder. Enter your details.
• Day after: Compare three quotes. Look for the one that matches your coverage but costs less.
• Within a week: Switch. Cancel your old policy. Confirm the new one starts on time.

You won’t regret it. Most people who do this say the same thing: "I can’t believe I waited so long."