Home insurance premiums across Australia have surged, with some insurers raising rates by over 30%, according to consumer advocacy group Choice. The average increase was 16%, but some companies significantly exceeded this figure, a report from The Guardian noted.
Choice compared quotes from 35 insurers between January 2024 and January 2025. Kogan led with a 37.9% price hike, followed by RAC at 32.6% and Honey at 30.7%.
“In the vast majority of cases, the price went up,” Daniel Graham, an insurance expert at Choice, told The Guardian. “Out of the 35 insurers we looked at, 19 of them increased prices for at least 90% of the test addresses.”
Insurers cite inflation, supply chain costs, and frequent extreme weather as key factors. Higher reinsurance costs due to severe storms in Australia and abroad also contributed.
RAA, another insurer that significantly increased its rates (by an average of 27.1%), echoed these concerns. “Every policy is different, but the main contributors to industry premium increases last year were the growing frequency of extreme weather events, increased reinsurance costs, and the rising costs to repair or replace homes,” an RAA spokesperson told The Guardian.
A 2022 Climate Council report estimated that 4% of homes could be uninsurable by 2030, with some high-risk areas seeing even steeper projections.
With the average home insurance premium rising by 16% – or an additional $359 annually – many Australians are struggling to afford coverage. A 2024 Compare the Market survey found that over one in four Australians lack home or contents insurance. Additionally, an Actuaries Institute report revealed that 1.6 million households face difficulties insuring their homes.
To save money, Choice experts suggest shopping around for better deals. “If you stick to your existing insurer, you’ll end up paying what we call a loyalty penalty,” said Choice insurance expert Jodi Bird. “Another way you can save money is to look at the excess you pay on your insurance. We see, for example, for approximately every $500 you increase your excess by your premium tends to go down by 10%.”
The affordability crisis has sparked political debate. Some propose intervention to prevent price gouging, while others suggest scrapping stamp duty on home insurance to lower costs.
While most insurers raised prices, some kept increases below inflation. RACQ’s average increase was just 0.02%, while NRMA’s was 1.7%. One premium insurer, Guild, reduced prices by an average of 15%.
“In the past, we’ve called this insurer one to avoid specifically because of cost, so it’s promising to see them trying to bring prices down,” Graham said. “That said, Guild remains one of the more expensive brands on the market.”
How have rising insurance costs impacted you? Share your experience in the comments.
