Australians are facing steep rises in home and contents insurance, with average premiums climbing 14% over the past year, from $2,452 in 2024 to $2,795 in 2025, according to Canstar.
State-by-state increases:
NSW: +18% ($2,613)
Victoria, South Australia, Tasmania: +17%
Queensland: +16% ($3,166)
Northern Territory: +$700 to $4,814
North Queensland: +2% ($4,624)
Canstar data insights director Sally Tindall attributes the rise to extreme weather events, including ex-tropical cyclone Alfred, which led to over 125,000 claims costing $1.36 billion, and broader cost pressures.
Rising premiums may prompt some households to reduce or cancel cover. Canstar suggests switching insurers could save significant amounts: nationally, up to $766 annually, with Queensland and the Northern Territory seeing potential savings of $921 and $1,172 respectively.
Other cost-cutting measures include paying annually (discounts up to 21%) or choosing a higher excess, though this is only advisable if funds are available to cover claims.
“Shop around, even outside renewal time,” Tindall advised. “Most providers don’t charge early cancellation fees, and those that do usually charge just $30–$40—a small cost compared to potential savings.”
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