MEDIA RELEASE

Money down the drain: Australians burning cash on pricey home and contents policies

Mozo found as a nation, Australians are pouring $572 million down the drain on pricey home and contents insurance policies

30 September 2021

  • Almost a quarter (23%) of Australians with home and contents insurances have never reviewed their policy 
  • Australians could save up to $614 a year on average, by comparing home and contents insurances policies and switching to a more competitive provider  
  • More than a third (35%) of Australians with home and contents insurances choose to cover their home for peace of mind 
  • For 18% of Australians who have taken out home and contents insurance, it was a compulsory requirement of their mortgage

New research from Mozo has found that almost a quarter (23%) of Australians with home and contents insurance have never reviewed their policies and switched to a cheaper provider. This finding comes despite massive savings of up to $614 a year on offer for those who compare home and contents insurance policies and make the switch. 

“Home insurance isn't something to set and forget. Insurance policies change each year and can go up depending on natural disasters and other factors. So by holding the same policy for a number of years without reviewing, you could be unnecessarily draining your wallet,” says Tom Godfrey, Mozo Spokesperson. 

Mozo’s research also revealed that 36% of Australians only review their policy when they move house.

“According to our analysis for the Mozo Expert Choice Awards, there are over 45 policies available on the market. With so many policies to choose from and such significant savings on offer, it’s surprising that more people are not regularly reviewing their policy and switching plans to pocket some extra cash."

    Home and Contents Insurance

    When it comes to why Australians have taken out contents insurance, more than a third (35%) reported it gave them peace of mind knowing they were protected should the unthinkable happen. A further 18% reported they insured their home to comply with their mortgage terms and conditions.

    “As the country prepares for bushfire season and parts of Victoria are experiencing earthquake aftershocks, taking the time to review your home insurance policy, and making sure you are getting the best value for the level of protection you need has never been more important,” Godfrey says.

    To help Australians navigate home and content insurance, Mozo’s experts compared 65 policies from 58 different providers to determine which insurance providers offer exceptional value and outstanding quality. Mozo recognised:

    • Budget Direct as Value Insurance Provider of the year 
    • NRMA as Quality Insurance Provider of the year 
    • Virgin Money as Exceptional Value Home and Contents Insurance

    -ENDS-

    Notes: Mozo commissioned a nationally representative survey of 1,109 Australians conducted by Researchify between 10 September 2021 - 18 September 2021. ​​Mozo analysed thousands of home and contents insurance quotes to determine the average difference between the least expensive and average premium quote for similar levels of policy coverage. The calculation is based on a sample of 182,260 home insurance quotes from 5330 customers scenarios across 46 policies. Using survey data, this savings figure was applied to the 23% of home and contents policy holders that stated that they never review or compare their home insurance policies, across the estimated 9 million private dwellings in Australia.Notes: Mozo commissioned a nationally representative survey of 1,109 Australians conducted by Researchify between 10 September 2021 - 18 September 2021. ​​Mozo analysed thousands of home and contents insurance quotes to determine the average difference between the least expensive and average premium quote for similar levels of policy coverage. The calculation is based on a sample of 182,260 home insurance quotes from 5330 customers scenarios across 46 policies. Using survey data, this savings figure was applied to the 23% of home and contents policy holders that stated that they never review or compare their home insurance policies, across the estimated 9 million private dwellings in Australia.