Despite insurance premium increases hitting sky-high levels in recent years, new research from Compare the Market has found that over one in three home and/or contents policyholders could be shutting the door on potential savings by auto-renewing their policy.
It continues a worrying trend from last year, when the home and contents insurance comparison site found that almost one in four contents policyholders were auto-renewing their policy.
Furthermore, 22.8% of people surveyed said they did not have any home and/or contents insurance policies, meaning that plenty of homeowners could be playing Russian Roulette with the safety of their homes and belongings.
Commenting on the trend the findings are taking, Compare the Market’s Executive General Manager of General Insurance and home and contents insurance expert, Adrian Taylor, said it’s never too late to look for a better policy, given that home and contents insurance premiums have increased at a rate higher than inflation over the past year.
“It’s worrying to see so many people out there with either home or contents policies are auto-renewing, given how tough the household budget is looking for so many people,” Mr Taylor said. “Not many people know that they could be saving a considerable amount on their policy with just a quick 10-minute search and comparison.
“Another point of even greater concern that I’m seeing based on our research is the amount people who do not have any insurance.
“With wild weather events becoming more common and the recent rise in thefts across the country, there are so many homes and belongings that are left unprotected in the case that something happens and they suffer losses.
“While people might think that they may be saving money in the short term, they could be losing out in the long term, as people may not have saved enough in the bank to cover the rebuild costs of their homes, or the replacement if several items are stolen.”
The data also revealed that 41.8% of Gen Z who had home and/or contents policies were auto-renewing the most out of all the generations surveyed. Millennials, on the other hand, were the least likely to auto-renew their policy out of the generations. However, over 30% of those surveyed still chose to re-commit to their current policy without any further research.
| Generation | % of people surveyed who auto-renewed their home and/or contents policy |
| Gen Z | 41.8% |
| Millennials | 31.9% |
| Gen X | 39.0% |
| Baby Boomers | 36.3% |
| Australian average | 36.4% |
Mr Taylor said it’s worth the time investment to shop around and compare home and contents insurance policies.
“So many things can happen in the span of a year when renewal notices come around,” Mr Taylor said.
“You may have purchased more items which increases your sum insured, meaning your existing policy may leave you underinsured. Or if you’re a homeowner and undertaken renovations, your existing policy may need to be updated to reflect this change to your home’s rebuild value.
“Not only should people be reviewing their circumstances and ensuring that they match up to their current home and contents policy, but also reviewing what the latest offers are on the market. Within the past few years, there have been some great new brands that have come on the market that offer new, exciting possibilities.
“A simple search can let you know whether you are on the best deal for your circumstances or whether there could be potential savings that you were previously shutting the door on.”
*Compare the Market surveyed 1,006 Australian adults aged 18 and over in June 2024
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For interviews and more information, please contact:
Noémi Hadnagy | m: 0433 377 252 | e: [email protected]
Compare the Market is a comparison service that takes the hard work out of shopping around. We make it Simples for Australians to quickly and easily compare and buy insurance, energy, and home loans products from a range of providers. Our easy-to-use comparison tool helps you look for a range of products that may suit your needs and benefit your back pocket.
