One quarter of Aussies too lazy to chase better deals

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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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Written by Ben

12 Comments

Total Comments: 12
  1. 0
    0

    Same as the banks and power companies all the same.

  2. 0
    0

    Well, Ben, there are other reasons. I’m afraid that we’re surrounded by crooked companies, governments, federal, state and local). No matter what we do to protect ourselves, these scavengers keep ripping us off.

  3. 0
    0

    Well, Ben, there are other reasons. I’m afraid that we’re surrounded by crooked companies, governments, federal, state and local). No matter what we do to protect ourselves, these scavengers keep ripping us off.

  4. 0
    0

    My answer to this is: Do other insurers have fortnightly payments with no extra premium to pay? If not, then I’ll stay with my current insurer, thank you.

    I receive a ‘good customer’, over 55, and multi policy discounts on both my car and contents insurance.

  5. 0
    0

    I am afraid I dont have a lot of respect for this advice – coming from a spokeman from a company tht maked their money out of scaring people into changing providers

  6. 0
    0

    I don’t normally ring around for a better price on car or home insurance as I’m happy with the company I’m with. On the other hand every time I get my renewal notice I ring my insurer up and ask if that’s the best price they can do. I always get a decent lower price that makes ringing around seem not worth the effort.

  7. 0
    0

    Trouble is, cos like compare the market have their favourites which are the ones that give them the best commissions !!


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