Stop burning cash on home insurance.
The Budget’s $3.4 million fix won’t shrink your bill this year, but a quick switch could cut it by 27 per cent, offering savings of over $1200 in some areas.
While the federal government’s four‑year commitment aims to put downward pressure on property insurance costs and reduce unintentional underinsurance over time, homeowners are unlikely to see immediate relief and certainly not in time for their next renewal.
According to Canstar research, home insurance is rapidly becoming one of the most significant financial burdens for families across the country.
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Nationally, the average annual home and contents premium jumped by a staggering 14 per cent in the 12 months to September 2025 alone.
The hidden savings under your nose
Despite the financial strain, a new Canstar.com.au survey of 5,484 Australians with home and/or contents insurance uncovered a surprising truth: only 19 per cent have switched providers in the last two years.
Source: Canstar.com.au
The good news? The majority of these recent switchers unlocked substantial savings.
More concerningly, a significant 33 per cent of insured homeowners have never changed providers.
This cohort is highly likely to be missing out on considerable savings, effectively paying a “loyalty tax” without realising it.
Shopping around could save you a fortune
Canstar.com.au’s analysis demonstrates the power of shopping around.
A homeowner with an average-priced home and contents policy who switches to a five-star rated alternative could potentially reduce their costs by $766 a year – a remarkable 27 per cent saving.
However, savings are even greater in some regions, with homeowners in North Queensland able to shave off $1,206 by making the switch.
Source: Canstar.com.au
Homeowners in the North Territory could also save up to $1,172, while Queenslanders look at savings of around $921.
Savings of up to $732 are likely in New South Wales, $635 in Victoria, $608 in South Australia and $670 in Tasmania.
The analysis was based on approximately 25,000 quotes from 45 providers, covering eight regions and three cover types.
The silent threat: Underinsurance
Beyond the immediate cost, rising construction expenses are increasing the risk of underinsurance.
According to the latest Producer Price Indexes data from the ABS, house construction prices rose by 4.1 per cent in the 12 months to March, and a massive 47 per cent compared to six years ago, just before Covid took hold.
For homeowners who haven’t reviewed their sum insured amount recently, there’s a very real risk that their cover no longer accurately reflects current rebuilding costs.
This could leave them significantly out of pocket should they need to make a claim after a major event.
Source: Canstar.com.au
Canstar.com.au’s data insights director, Sally Tindall said home insurance remains one of the biggest cost pressures for households.
“Some homeowners are increasingly finding themselves in a rock and a hard place when it comes to renewal time, particularly those living in higher-risk areas,” she said.
“It’s important to have the security that home insurance can bring, but for many households, they’re now grappling with the question of: at what price?
“It can also be a difficult hurdle to clear for those borrowers who have seen their premiums skyrocket, yet are required by their lender to have adequate insurance as a condition of their mortgage.
“While it’s great to see the government acknowledge and take steps to tackle the rising issue of insurance unaffordability, households should not wait for changes to flow through the system, but instead take control themselves.”
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