Rising Home Insurance Premiums in Australia

Consumer advocacy group Choice conducted a study comparing quotes from 35 insurance companies between January 2024 and January 2025. The findings revealed that insurers such as Kogan, RAC, and Honey raised their average premiums by over 30%, significantly outpacing the industry average.

Insurers cite several factors contributing to these hikes, including high supply chain inflation, increased claims costs, and higher reinsurance expenses due to severe weather events both domestically and internationally. The rising costs of building materials and labour further exacerbate the situation, making it more expensive to repair or replace homes after damage.

To mitigate these rising costs, homeowners have been advised to shop around for insurance policies, as loyalty to a single insurer may result in higher premiums. Additionally, adjusting the excess amount on policies can lead to lower premiums, though it's important to ensure that the chosen excess is affordable in the event of a claim.

The increasing unaffordability of insurance is a growing concern, with some regions at risk of becoming uninsurable due to their vulnerability to natural disasters. This trend underscores the need for both insurers and policymakers to address the challenges posed by climate change and its impact on the insurance industry.