Significant Rise in Australian Home Insurance Premiums

Choice's analysis compared quotes from 35 insurance companies collected in January 2025 with those from the same brands in January 2024. The findings revealed that mid-price insurer Kogan, underwritten by QBE, had an average price increase of 37.9%. RAC raised its average quote by 32.6%, while Honey, underwritten by RACQ, increased its costs by 30.7%.

Industry representatives attribute these significant premium hikes to several external factors, including high supply chain inflation, increased claims costs, and higher reinsurance expenses resulting from severe weather events both domestically and internationally. For instance, RAC cited the growing frequency of extreme weather events and rising reinsurance costs as primary contributors to the premium increases.

Experts also point to the escalating costs associated with natural disasters in Australia as a significant factor. A 2022 Climate Council report projected that 4% of homes across the country would be uninsurable by 2030, with some regions, such as Shepparton in Victoria, facing figures as high as 90%.

These developments underscore the importance for homeowners to regularly review their insurance policies, compare offerings from different providers, and seek professional advice to ensure they have adequate coverage that aligns with their financial circumstances.