In navigating the complexities of modern life, one of the more sobering realities for many Australians, particularly those over 50 who are often on fixed incomes, is the ever-increasing cost of living.
Among these costs, home insurance is a significant household expense that has been steadily climbing. For those who have just opened a recent communication from a home insurer, the sticker shock of an increased annual premium can be quite jarring. But the question begs: which insurers are responsible for the most significant price hikes?
In the past year alone, the average home insurance premium has surged by a staggering 16 per cent, equating to an additional $359 on average. This is a considerable financial burden, especially for those who are budget-conscious and planning for retirement or already enjoying their golden years.
A comprehensive analysis by CHOICE experts, who compared thousands of quotes from 35 insurers between January 2024 and January 2025, has shed light on this pressing issue.
The findings are quite revealing, with insurers such as Kogan, RAC, and Honey leading the pack with the highest average price increases.
On the flip side, Guild Insurance stands out as the lone insurer that actually reduced their prices by 15 per cent on average. However, it reportedly ‘remains one of the more expensive brands on the market, despite its sharp price drop.’
Daniel Graham, an insurance expert at CHOICE, points out that while the majority of insurers raised their prices, the increases were not uniform across the board. He explains, ‘Insurers have many levers at their disposal to change the way their algorithm calculates your premium.’
‘Sometimes this means an insurer will increase prices for some addresses, while keeping them the same or even dropping them for others. Take NRMA, for example, which hiked prices at one third of addresses, kept them the same at another third, and dropped prices for the rest. This means their average price change was 1.7%—great on paper, but there’s clearly more going on beneath that figure.’
He further explains, ‘Looking only at the addresses that had an increase, NRMA prices went up 24.4%. For addresses that saw a decrease, prices dropped 20.7%. Lucky for some!’
This variability serves as a reminder that it’s worth revisiting insurers you may have previously considered too expensive, as their pricing strategies may have shifted in your favour.
Despite the current Consumer Price Index (CPI) inflation sitting at 2.4 per cent, the inflation rate for insurance and financial services is more than double at 5.4 per cent. Yet, there are insurers whose price increases remained below this financial services inflation rate, suggesting that not all companies are subjecting their customers to exorbitant hikes.
Meanwhile, here is the complete data on the policy price increases from home and contents insurers:
| Home and contents insurers | Average annual premium increases |
| Kogan | 37.90% |
| RAC | 32.60% |
| Honey | 30.70% |
| Apia | 28.10% |
| RAA | 27.10% |
| GIO | 20.60% |
| Sure | 19.70% |
| Suncorp | 17.70% |
| CGU | 16.70% |
| AAMI | 16.30% |
| NAB | 15.90% |
| Real Insurance | 15.20% |
| Everyday Insurance | 14.60% |
| Allianz | 13.20% |
| Bupa | 12.40% |
| Great Southern Bank, Huddle, Hume Bank, and National Seniors | 12.30% |
| Bank of Melbourne, BankSA, St.George, and Westpac | 12.10% |
| People’s Choice | 11.20% |
| TIO | 10.60% |
| RACV | 9.70% |
| RACT | 8.60% |
| QBE | 7.00% |
| Australia Post | 6.80% |
| Bankwest, and CBA | 5.20% |
| AHM | 5.10% |
| NRMA | 1.70% |
| RACQ | 0.00% |
The factors influencing your home insurance quote are numerous and can include your location, the security measures you have in place, the insured value of your property, and the excess amount you’re willing to pay.
CHOICE reminds that it’s crucial to shop around, as prices can vary significantly from one insurer to another. Some insurers may even quote exorbitantly high prices for properties they prefer not to cover, hoping you’ll accept the offer without comparison.
At YourLifeChoices, we understand the importance of finding value for money, especially when it comes to essential services like home insurance. We encourage our readers to be proactive in seeking out the best deals and to not shy away from negotiating with insurers or switching providers if necessary.
Share your experiences with us in the comments below—have you faced a significant premium increase, or have you found a better deal elsewhere? Your insights could help your fellow Australians make more informed decisions about their home insurance.
Also read: Living in a danger zone? See how much home insurance could soar!
Youi is not on the list. We changed last year to them from GIO. Got another $500K of building cover (we were underinsured) for $300 less than what GIO wanted.