Insurance premium increases as high as 58% have prompted warnings Australians could be missing out on hundreds of dollars in savings by failing to shop around.
New research from Compare the Market shows 43% of Australians surveyed have experienced bill shock after receiving a higher than expected charge.*
Brisbane man Matthew was shocked to find his home and contents insurance premium would rise nearly 39% to $4,805 in December.
“Such a big increase didn’t feel justified when we’d never made a claim,” Matthew said.
“I understand construction costs are up and natural disasters are more frequent, but I think it’s really scary that insurances are becoming unaffordable for regular families like ours.”
Victorian woman Karen saw her car insurance premium rise 58% from $1,071 to $1,695.
Hurstbridge woman, Emily, decided to take action after her car insurance renewal notice came through advising of an increase of 45%. She compared policies, and after making some changes to her level of cover, was able to reduce her premium by $876.
Compare the Market has launched its Wake Up Australia campaign to empower Aussies to tackle some of their biggest household bills by comparing and switching where savings are available.
Economic Director David Koch said setting aside a few minutes to research better deals while on the train to work, in the doctor’s waiting room, or even in front of the TV could lead to major savings.
“I challenge you to round up the following five bills: your energy plan, car insurance, home and contents cover, private health cover and your home loan – then spend five or ten minutes comparing what you’re spending, against new offers,” Mr Koch said.
“The worst that can happen is that you find out you’re on a great deal – that’s peace of mind. The best thing is potentially uncovering some savings. That’s how we make 2025 the year to fight back against bill hikes.”
According to new data, about two thirds of Aussies surveyed (70%) have proactively sought out savings over the past year, but 30% hadn’t made time to look for better offers.*
Car insurance was the most compared product, with 41% of people looking for lower premiums, followed by home and contents insurance (31%), energy plans (27%) and private health cover (22%).
Many Aussies who hadn’t compared bills (34%) believed they were already getting good deals, assumed the savings would not be worth the effort (18%), cited feeling loyal to their preferred brands (7%) or said they were too busy to shop around (14%).
While the majority of people surveyed (53%) selected their insurance based on price, 39% of people based their decision on the brand’s reputation – an illusion Mr Koch warns can catch some consumers out.
“We like to think the big brands are too big to fail, or might have our best interests at heart, but the reality is that your loyalty often won’t be repaid, with the best deals usually reserved for the newest customers,” Mr Koch said.
“Remember, smaller brands are regulated by the same authority as the big brands and have to abide by the same financial benchmarks.
“When your renewal notices arrive, don’t shrug and let them roll over. The money that you could be saving on grudge purchases like insurance could be much better spent on the things that you actually enjoy or put towards your bigger goals for the future.”
*Survey of 1,000 Australians in December 2024
