Online shopping may not be as convenient as we once thought, with new research from Compare the Market revealing that 42.9% of Australians who have made an online purchase in the last 12 months have had issues with their delivery.*

With the peak Christmas shopping period just around the corner, Compare the Market is warning Australians that their contents insurance policy may not cover packages or parcels that are stolen or damaged.

According to Compare the Market’s latest data:

• 1% of Australians surveyed say their online order hasn’t arrived on time
• 7% say their package or parcel hasn’t arrived at all
• 3% say a parcel has been delivered to a different address entirely
• 5% say a package was left in an inappropriate place
• 7% say their items were damaged during transit
• 4% say their delivery was stolen from their property
• 6% say items were destroyed by weather events when left at their property

Compare the Market’s Executive General Manager of General Insurance, Adrian Taylor, said despite the misconception, stolen or damaged goods ordered online are rarely covered by your contents insurance policy.

“While contents insurance is designed to protect your belongings from theft, fire and other damage, many Australians may be surprised to hear that it usually doesn’t cover packages, parcels or other items if they go missing from outside the confines of your home,” Mr Taylor said. “That means if an item is delivered but goes missing from your porch, letterbox or wherever the delivery driver leaves it, it’s not covered by your home’s contents insurance policy. It’s a similar story for items that are delivered but become damaged.”

Instead, this is an issue you’d need to take up directly with the company delivering your online order or the retailer where you made your purchase. However, Mr Taylor said you may need to meet certain criteria for a refund or replacement.

“Always check a company’s specific terms and conditions, as they can vary,” Mr Taylor said. “In most cases, if you consent to a package being left on your property and you aren’t requesting a signature, tracking or registered post, it may be difficult to obtain a refund or replace your stolen or damaged goods. Sometimes, paying that little bit extra does give you peace of mind in case the worst happens. And as our research shows, it’s quite common for problems to arise with online deliveries.”

Australia Post said its delivery service is suitable for sending items valued at $100 or less and compensation may be offered to this value if items are lost or damaged. If you’re sending anything over $100, you can take out Extra Cover up to $5,000 to protect your Australia Post deliveries.

You may also be able to take out additional cover to protect your purchase, depending on the online store you buy from.

But, with the busy post season here for another year, Mr Taylor said there were other measures you could implement to protect your packages.

“If you don’t think you’ll be home when a parcel is going to be delivered, consider shipping your online goods to your workplace or to an address where someone will be able to collect it safely,” Mr Taylor said. “Similarly, PO Boxes and parcel lockers have become popular in recent times and allow your items to be delivered to a secure location and for you to pick them up at a convenient time.

“Click-and-collect is another option, which allows you to shop and pay for your goods online, but to pick them up from a physical store – eliminating the need for goods to be delivered to your specific property. There are so many options available these days; it’s just about finding one that best suits your needs.”

Mr Taylor said contents insurance was still paramount for protecting your goods inside the home.

“As we head into the silly season, we know a lot of people are making big-ticket purchases for things like gaming consoles, electronics, whitegoods, jewellery and more. Depending on your policy, contents insurance may cover these items once they’re inside your home,” Mr Taylor said. “But, ensure you update your policy for the amount it would be to replace the items if they were stolen or damaged.

“It’s also a good idea to keep receipts handy or take photos of them on your phone so you have them if you need to claim down the line.”

*Survey of 1,001 Australian adults, conducted September 2024

For more information, please contact:  

Phillip Portman | 0437 384 471 | [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.