Will Australian Home Insurance Premiums Balloon in 2023?

Unfortunately, 2023 didn’t get the memo. After New Year’s Eve, food prices didn’t magically drop, rent prices didn’t take a holiday, and electricity still costs too much. 

Moreover, some folks are expected to be hit with higher home insurance premiums this year. This is thanks to inflation raising the price of basically everything. 

However, it’s also thanks to Australia’s natural disasters. Because climate change disasters are happening more frequently, more Australian homes are getting flooded or burnt down more frequently. Insurance providers don’t want to be stuck with bills they can’t pay, so they instead have the option of raising everyone’s premiums. 

“The important feature of inflation and climate-related risks is that these are largely systematic risks. This means they are so pervasive, they cannot be mitigated by risk management or diversifying providers’ insurance and investment portfolios,” said Professor Michael Sherris, a UNSW Business School Researcher. 

“In short, they are likely to hit many insurance policies and industries at once. This means that insurance premiums are certain to increase, it’s just a matter of by how much and when.”

Additionally, higher home insurance premiums are already impacting some people’s bank accounts. According to a Finder survey, 63% of 649 Aussies had their home or contents insurance go up in the last 12 months. Unfortunately, another 14% didn’t know if this was the case for them or not.

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How Can I Save Money on My Home Insurance Premiums?

When it comes to home insurance premiums, loyalty will more often than not get you nowhere. 

As the Insurance Editor at Finder, James Martin, said, “The best deals are typically offered to new customers when they sign up online. Insurers often offer discounts of up to 30% for new customers, so it absolutely pays to shop around each year.”

“You can also call your insurer and ask them to price-match or give you the best possible deal. It doesn’t always work, but it’s worth a shot: They’ll often do what they can to keep your business.”

Furthermore, Sarah Megginson, the Managing Editor at Finder, recently followed this advice and reaped some A+ rewards. 

“I shopped around, it took me about an hour, and I got a policy with the same coverage for $2950,” said Megginson. “So I actually saved 10% on my old policy and didn’t sacrifice any cover or benefits.”

Well, it’s a bit of food for thought. Best of luck on your home insurance premiums adventure.

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