An independent, nationally representative survey of 1000 Australians has found that nearly a quarter of consumers are sticking with the same home and contents insurer for more than a decade.
Respondents to the survey run by Pure Profile were asked about how high their home and contents premiums would have to get before they considered switching.
Worryingly, almost two thirds (62 per cent) of Aussies admitted that the cost of their home and contents policy has jumped since this time last year.
However, over half of consumers (55 per cent) said it would only take a $100 (or less) premium increase to motivate them to switch, with upcoming renewal communications by insurers a likely trigger for consumers to compare other products in the market.
Finance expert Rod Attrill from Compare the Market said it’s time for Aussies to stop repeating the same habits of staying with the same insurer and explore other options to see if they could lower their premiums with a different provider.
“It’s alarming that so many people are remaining complacent when it comes to shopping around and finding cover that offers the most value for their household,” Mr Attrill said.
“After 10 years, your insurance may no longer offer what you need, especially in terms of your back pocket.
“With two-thirds (66 per cent) of Australians owning a home (with or without a mortgage), it’s more important than ever to begin evaluating whether your policy is up to scratch and fits in with your current lifestyle.”
When it comes to why people don’t switch to find a cheaper policy, the top reasons included the ease of automatically renewing each year (29 per cent) and thinking they won’t find a better-priced home and contents policy (28 per cent). On top of this, more than a fifth (22 per cent) of policyholders admitted that they already had numerous rewards with their current insurer.
“Home and contents insurance helps to protect one of people’s most precious assets against damage, destruction and even theft,” Mr Attrill said.
“It pays to compare; Aussies should check their policy at least annually and review prices to better understand if they have the right level of cover in the event that something should happen to their property or valuables.
“For example, if homeowners have recently upgraded their furnishings or purchased new pieces of technology or jewellery, they might need to increase their contents insurance value to help ensure their home is more accurately protected.
“Regardless of whether your home and contents premiums have or haven’t jumped in the past year, it’s still a good idea to start comparing your options as there may be better value cover out there.”
How long has it been since you last changed or checked your home and contents policy provider?
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