Is It OK to Switch Home Insurance Companies Often?

Every year, around the time your home insurance renews, you get that email or letter: your premium just went up. Again. You start wondering-should you just switch? Is it even smart to jump ship every year? The short answer: yes, it’s usually fine. But only if you do it right.

Switching Doesn’t Hurt Your Coverage

A lot of people think switching insurers often will make them look risky. That’s not true. Unlike credit scores, your home insurance history doesn’t get flagged every time you change providers. Insurers don’t share a blacklist. They don’t know you’ve switched three times in five years unless you tell them. What they care about is your claims history, your home’s condition, and your location-not how often you shop around.

In Australia, the Australian Securities and Investments Commission (ASIC) explicitly says consumers have the right to switch at any time. There’s no penalty. No fine. No hidden rule that says you’re ‘too fickle’ to insure. The only thing that matters is whether your new insurer will take you on-and most will, if you’re not filing claims every other month.

Why People Stay Put (And Why They Shouldn’t)

Most people stick with the same home insurer for years. Why? Habit. Convenience. They forgot to check the renewal notice. Or they got a ‘loyalty discount’ once, and never bothered to see if it still made sense.

Here’s the problem: loyalty doesn’t pay. In fact, it costs you. A 2025 survey by Canstar found that Australians who never switched home insurance paid an average of $387 more per year than those who compared quotes annually. That’s not a small difference-it’s a new fridge, a holiday, or a year’s worth of car washes.

Insurers know this. That’s why they offer big discounts to new customers. Your first-year rate might be $800. After two years, it jumps to $1,100. Meanwhile, a brand-new customer in the same suburb gets the same coverage for $850. You’re not being rewarded for loyalty. You’re being punished for forgetting to check.

When Switching Makes Sense

There are clear moments when switching isn’t just smart-it’s essential.

• Your premium jumped more than 10% without any change to your home or claims history
• You found a competitor offering the same level of cover for 15% less
• Your current insurer denied a claim you thought was valid
• You moved house and your old policy doesn’t cover your new area
• Your insurer raised your excess by $500 without warning

Don’t wait for a disaster to happen. If you haven’t reviewed your policy in over a year, you’re already losing money.

What to Check Before Switching

Switching sounds easy-but skipping a step can leave you underinsured. Don’t just pick the cheapest quote. Here’s what you need to compare:

1. Coverage limits-Is your contents cover enough to replace everything? Many policies cap it at $50,000, but a modern living room with a 75-inch TV, sound system, and designer furniture can easily hit $80,000.
2. Excess amounts-A lower premium often means a higher excess. If your excess is $2,000, you’re paying $2,000 out of pocket before the insurer helps. That’s not a bargain.
3. What’s excluded-Some policies don’t cover storm damage to fences, or water damage from burst pipes. Others exclude flood cover unless you pay extra. Read the Product Disclosure Statement (PDS).
4. Claims process-Call the insurer’s claims line before you sign up. How long does it take to get a callback? Are they responsive? You don’t want to be stuck on hold during a broken roof.
5. Additional benefits-Some insurers offer free home emergency services, locksmith access, or temporary accommodation if your home is uninhabitable. These can save hundreds in a crisis.

How Often Should You Switch?

There’s no magic number. But if you’re switching every 6 months, you’re probably not giving insurers time to build a fair risk profile. On the flip side, staying with the same company for 5+ years without checking is a financial mistake.

The sweet spot? Review your policy every 12 months. That’s enough time to spot trends, but not so long that you’re paying inflated rates. You don’t have to switch every year-but you should compare. Sometimes, your current insurer will match a better quote if you ask. But if they don’t, walk away.

What Happens When You Switch?

Switching is easier than you think. Here’s the real process:

1. Get at least three quotes from different insurers. Use comparison sites like Compare the Market, Canstar, or MoneySmart.
2. Choose the best one based on coverage, not just price.
3. Apply online. You’ll need your current policy number and details of your home.
4. Pay the first premium. The new insurer will handle the cancellation of your old policy.
5. Confirm cancellation in writing. Don’t assume it’s done.

You won’t be left without cover. By law, your new policy starts the moment your old one ends. No gaps. No risks. Just a lower bill.

When Not to Switch

Switching isn’t always the right move. Avoid it if:

• You’ve made a claim in the last 12 months-new insurers might charge more or refuse you
• Your home has major structural issues (e.g., old wiring, no storm shutters) and only your current insurer covers it
• You’re in the middle of a claim-switching mid-claim can delay or void it
• You’re moving soon and your new home’s insurance needs are unknown

If you’re unsure, call your current insurer. Ask: ‘If I were a new customer today, what would my premium be?’ If they say it’s higher than what you’re paying, you’re being loyal to the wrong company.

Real Example: A Sydney Homeowner Saved $620

In 2024, a homeowner in Hurstville, Sydney, had been with the same insurer for seven years. Their premium was $1,280/year. They compared quotes after a friend mentioned switching. They found a new provider offering identical cover-$1,000/year. Plus, they got free emergency plumbing services. They switched. Saved $280 in the first year. Then, the next year, they checked again. Found another quote for $920. Switched again. Total savings over two years: $620. No claims. No drama. Just smarter shopping.

That’s not luck. That’s routine.

Final Thought: It’s Not About Loyalty. It’s About Value.

Insurance isn’t a relationship. It’s a service. You pay for protection. You don’t owe your insurer loyalty. You owe yourself a better deal.

If you’re not checking your home insurance at least once a year, you’re paying more than you should. Switching often isn’t reckless-it’s responsible. The companies that charge the most are counting on you to forget. Don’t let them win.