Cheap Home Insurance
Need cheap home insurance in Australia? This guide cuts through the complexity, helping you find a policy that’s both affordable and reliable. Whether you're trimming expenses or seeking basic coverage, we provide the insights to help you compare home insurance policies effectively to get the best deal possible.
.png)
How we identified the cheapest home insurance
The Mozo Experts Choice Home Insurance Awards annually celebrate the finest in home insurance, shining a spotlight on policies that provide outstanding value. These awards are a guide for homeowners focused on budget-friendly choices, helping them identify some of the most competitively priced options available.
The category to note is the Exceptional Value Home & Contents Insurance category. This award highlights policies with prices that are consistently amongst the lowest when compared to other similar products.
Eager to explore these budget-friendly home insurance options? We've carefully selected notable policies from the 2024 Mozo Experts Choice Home Insurance Awards for you to check out.
Mozo award-winning cheap home insurance policies
Budget Direct - Home & Contents Insurance**
- Multiple Mozo Experts Choice Award^ winner
- Optional flood cover
- 30% online discount off the first year’s premium (T&Cs apply)
Why it won: Time and time again, the Mozo judges have been impressed with Budget Direct’s consistently low prices and solid cover limits. Budget Direct’s home & contents cover scooped up a 2024 Mozo Experts Choice Award^ for Exceptional Value, continuing an unbroken winning streak for this award every year since it began in 2017. The award-winning policy combines building and contents cover and comes with a 30% discount off the first year’s premium when you purchase a combined policy online (T&Cs apply).
Just be aware that the policy does not cover document replacement or any damage due to storm surge.
QBE Home Cover - Buildings & Contents**
- 20% for getting a quote and buying online
- Optional 30% underinsurance safety net
- 2024 Mozo Experts Choice Award winner
Why it won: QBE Home and Contents Insurance not only ranks among the most affordable options, but it also packs a serious punch. Take the generous limits: nearly every category of cover has limits that are among the highest in our database, including up to $2,500 for each item of jewellery, 24 months of temporary accommodation, and 30% underinsurance protection (with the underinsurance add-on). That’s why it took home two major awards in the 2024 Mozo Experts Choice Awards for Home Insurance, including awards for Exceptional Value and Exceptional Quality.
Interestingly, it’s one of the few policies that do not cover landscaping at all, so if landscaping is important to you, it might not be the best fit. But for many of you, it’s a real contender, and you could even receive a 20% discount by purchasing online, bringing the cost down even further.
Other cheap home insurance policies
Those weren’t the only exceptional value winners at this year's awards. Aussie stalwart AAMI also took home one of these coveted awards.
If price isn’t a concern and you want to know the best overall policies, check out our lowdown on the best home insurance policies in Australia. And if you want to learn exactly how we chose the cheapest and best policies, you can check out our full methodology report.
For a full list of winners in all categories, head over to the Mozo Experts Choice Home Insurance Awards^.
How to find cheap home insurance: tips and tricks
If you want to know how to find cheap home insurance, you’re in the right place. Home insurance premiums will vary depending on the insurance company and a variety of other factors. In general, though, there are a few ways to get cheaper home insurance and keep costs down.
- Opt for a higher excess. An excess is an amount of money you agree to pay whenever filing an insurance claim. Generally, a higher excess means a cheaper home insurance premium. Opting for a higher excess can be a cost-effective strategy if you’re living in a relatively low-risk home, since you probably won’t have to file a claim anytime soon. (However, keep in mind you’ll have to pay that high excess when the worst happens).
- Bundle discounts. Insurance companies often offer discounts for bundling policies with them, whether it’s purchasing a combined home & contents insurance policy or even taking out other kinds of insurance with them, such as life, pet or car insurance. Check what discounts are available and see if you can maximise savings that way.
- Invest in safety precautions. Enhancing the security of your home can lower your risk profile, which can sometimes make for cheaper home insurance premiums. Spring for some extra padlocks, smart sensors or weatherproofing. Your home (and wallet) may thank you.
- Keep claims to a minimum. While it seems counterproductive, insurance providers often reward low-risk policy-holders with a ‘no claims discount’. If you can pay for minor accidents out of pocket, it may be cheaper in the long-run than racking up an extensive claims history.
- Compare policies on the market. Don’t settle for the first good looking policy or auto-renew your current one! Use tools to compare cheap home insurance, ensuring that the quote you're getting is competitive. If you find something better, don’t be afraid to make the switch.
By following these strategies you can find and maintain cheap insurance for your home, ensuring you’re always getting the best deal.
What to watch out for with cheap home insurance
Finding cheap home insurance is smart, but it is really important to know what you are getting. Affordable policies can differ a lot, so understanding what to check helps you find the right balance between cost and good coverage.
Here’s what to keep in mind when looking for budget friendly home insurance:
- Know your payout limits. With cheaper policies, you risk underinsurance for your home, meaning the total sum insured might not cover rebuilding costs, especially if building prices surge. For belongings, budget options often pay only actual cash value (depreciated worth), not the full replacement cost. Be sure you are comfortable with these limits.
- Understand the excess and claims. A lower premium often means a higher excess, the amount you pay yourself if you make a claim. Also, consider the claims process; some budget policies are fully online, which might not suit everyone.
- Be aware of missing extras. Cheaper policies often strip away beneficial add ons. This could mean you miss out on coverage for accidental damage, motor burnout, or even temporary accommodation if your home becomes unlivable. Always check the product disclosure statement (PDS) to understand all inclusions and limitations.
Is cheap home insurance right for me?
When making important financial decisions, it’s vital to seek consultation with a registered financial advisor and do as much research as possible. A cheap home insurance policy might be good for some people and not others, so take your needs into account when comparing policies.
For instance, a cheap home insurance policy might suit someone who:
- Has a well-maintained dwelling.
- Lives in a low-risk area.
- Has a tight budget.
Ultimately, however, it’s up to you to decide which bells and whistles you need. The right home insurance policy will provide adequate coverage while fitting squarely within your budget.
FAQs about cheap home insurance
How much does home insurance cost in Australia?
Based on a nationally representative survey of 1,265 Australians aged 18 and over, the average cost of home insurance in Australia is $3,499 per year, or roughly $292 each month. This survey was conducted on behalf of Mozo by research firm Researchify between June-August 2024.
It’s different in each state though. For example, Queenslanders will generally see higher average premiums, sitting around $4,398 annually. But head down to South Australia, and the average drops to $2,053.
But remember, these are just averages. Your own quote could be different due to the build quality of your home, the risk profile of your particular region, and a number of other factors. If you're looking for cheap home insurance, it's always a good idea to get quotes from a few different insurers to find the best price for your unique situation.
What type of home insurance is cheapest?
Unlike car insurance where you might pick between comprehensive or third party, home insurance doesn't really have those distinct ‘types.’ Instead, you typically choose what you want to cover: the building only, just your contents, or a combined policy for both.
If you're looking for the cheapest option, taking out building insurance only is generally more affordable than a combined policy. This might make sense if you do not have many valuable contents, or if you are comfortable covering your belongings yourself in case of damage or loss. Beyond that, the main way to get a cheaper premium is to avoid all the optional extras that can add to the cost - but only if you don’t need those extras.
What is the cheapest home insurance in Australia?
Finding the cheapest home insurance in Australia really does hinge on your personal situation. What's a bargain for some may not be as sweet for others. That said, there are a few insurers known for their competitive rates. Recognized in the Mozo Experts Choice Awards for their value, these include Budget Direct, QBE and AAMI.
These providers have earned a nod for offering good deals, but remember, the best savings often come from comparing policies and tailoring them to your needs. For more tips on how to find a policy that's both affordable and suitable, have a look at our ‘Saving on home insurance: tips and tricks’ section above.
And for a deeper dive into why these insurers stand out, check out the Mozo Experts Choice Awards page here.
Why is Budget Direct home insurance so cheap?
Budget Direct's home insurance is easy on the budget because they've got a knack for keeping things simple and efficient. They focus on online services, which cuts down on traditional office costs, and they let you customise your coverage so that you're not paying for extras you don't need.
However, it's worth noting that ‘cheap’ doesn't always mean it's the right fit for everyone. Your needs are unique, and it's a smart move to compare different options. There are other cheap options out there, so taking a bit of time to explore can help you find the insurance that fits your circumstances.
Is it cheaper to bundle home and contents insurance?
Yes, many insurers provide discounts for combining your building and contents insurance policies, resulting in lower premiums compared to purchasing each policy separately. However, the type and size of the discount can vary – it might be a smaller monthly payment or a one-off upfront discount on your first month’s premiums.
And while bundling house and contents insurance might offer savings, but it's key to check the specifics. Not all insurers offer bundling options, and even when they do, the deal you get might not always be the best for your particular needs. It's wise to use comparison tools or speak directly with various insurers to explore your options.
What affects the cost of home insurance?
Home insurance providers look at a couple of different things when calculating the price of your premium. This includes factors such as the risk profile of your home, the amount of cover you need, relevant claims history and compulsory charges like stamp duty and GST.
For example, your risk profile can be influenced by your dwelling’s:
- Age. Older homes may face higher premiums due to potential risks associated with ageing materials and outdated construction.
- Location. Properties in areas prone to natural disasters or high crime rates might incur higher premiums.
- Value. More expensive homes typically cost more to insure because they can be more costly to repair or rebuild.
- Elevation. Homes in flood-prone areas or with specific elevation features may have different insurance requirements.
- Condition. Well-maintained homes are often seen as less risky and can help you obtain cheap house insurance rates.
Luckily, knowing what influences your premium can help you keep it down and make decisions about what kind and amount of home insurance coverage you may need.
Can I save on home insurance by undervaluing my home?
No, undervaluing your home is not a smart way to save. Doing so can result in underinsurance, where you're only paid a percentage of the total cost of damages, leaving you out of pocket for the rest. Worse still, if the insurer finds it was intentional, it could lead to your claim being denied altogether.
* Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
^See information about the Mozo Experts Choice Home Insurance Awards