Dollar Saver Tip #30
Save: $1,360
Tip overview:
Home insurance premiums are going up, but it's possible to save.
As part of our recent home insurance awards, we got 300+ home and contents insurance quotes and found a difference of $1,362 between the cheapest and most expensive brands.
So, is the pricier policy worth it? Probably not.
Most home insurance policies cover you for the same events such as fires, storms, theft and leaks (in insurance language, this is usually called escape of liquid).
The only major difference to watch out for is flood cover, which is sometimes optional, and underinsurance protection. This stops you from being thousands of dollars out of pocket if your home is totally destroyed by an insured event.
Did you know?
Finder Awards research shows the cheapest home and contents insurance policies were AAMI ($1188/year), Budget Direct: ($1365/year) and Virgin Money ($1378/year).
So who are the standouts?
If you're looking for a comprehensive policy, Honey could be for you. It won this year's comprehensive Finder Award.
It comes with automatic flood cover, up to $20,000 towards your home office contents and $6,000 towards jewellery. This is better than most.
You also get smart sensors (worth $250) when you sign up. These help detect and prevent household accidents so you're less likely to make a claim.
For value, Budget Direct was this year's winner. It provides a similar level of cover to other brands but at a lower price. According to our 2023 research, the average policy costs $1,365 per year. That's cheaper than 20 other insurers including QBE, Kogan and Youi.
Reckon you're paying too much for your home insurance? See if you could save as much as $1,360 a year by switching.