Our insurance team have gathered 700+ quotes from over 20 providers, looking at 21 home and contents insurance policies and 31 building only options. We've selected some cheap home insurance policies based on 2023 Finder Awards and pricing research. Keep in mind, your costs will differ depending on where you live, the value of your home and your claims history.
Why you can trust our research
50+
policies analysed
700+
quotes gathered
100+
hours of research
Cheapest home insurance in January 2024
Best value home and contents insurance: Budget Direct
Best value home and contents insurance: Budget Direct
What we like about Budget Direct:
It's consistently one of the cheapest home insurers on the market, especially in major cities including Sydney, Melbourne and Brisbane. It costs an average of $1,365 per year, according to our awards research. Out of 20+ home insurance policies, that's $411 less than average.
It's cheap but it covers the essentials, which is why it won the best value home insurance award. It covers the most common reasons for claims such as fires (including bushfires), escape of liquid (such as a burst pipe), storms, rainwater and theft.
Unlike most insurers, Budget Direct doesn't automatically cover floods. It's important you add this on to your policy if you are in a flood-prone area. You can do this when you get a quote.
You get 30% off your first year's premiums for a combined policy purchased online. Keep in mind, your insurance may increase after this. To make sure it's still a cheap policy, it's worth shopping around after the first 12 months.
We researched a total of 68 home and contents insurance policies. We then created an eligibility criteria which narrowed policies down to 21 and got quotes for all of these brands.
We then scored 15 different features out of 10 and assigned each of them a weight. The combined features score accounted for 40% of the final score and price 60%. Budget Direct came in first place.
Cheap buildings only insurance: Youi
What we like about Youi:
If you don't want contents insurance, Youi could be good. It offered the joint cheapest buildings only insurance policy out of 31 popular insurers including Budget Direct, Allianz and QBE. It cost an average of $973 per year, the same as AAMI, and $235 less than Qantas, the second cheapest buildings policy.
Its building option covers your property for theft, fire, earthquakes, floods and storms, temporary accommodation, emergency repairs and clean up fees. It will also cover soot or smoke damage from a bushfire or any other accidental fire within 100 metres of your home and pay for temporary accommodation if you're told by the local authorities to evacuate. Other insurers we researched didn't offer this.
Unlike other insurers, you often have get a quote over the phone which may be inconvenient for some.
Buildings only insurance won't cover your contents for loss or damage. This includes items such as your furniture, curtains and carpets.
We got 400+ buildings only insurance quotes from 31 providers including AAMI, Budget Direct and Allianz. We got prices for 10 different property locations in both the city and suburbs of NSW, VIC, QLD, WA and SA. On average, Youi offered the cheapest buildings only insurance policy.
Keep in mind, prices can vary a lot depending on where you live and the type of property you own.
Cheap home and contents insurance: AAMI
What we like about AAMI:
AAMI offered the cheapest home and contents insurance policy on average when we gathered quotes from 21 of Australia's most popular insurers. A policy cost an average of $1,188 per year. Keep in mind prices can differ a lot depending on where you live.
It covers most of the essentials, including fires, bushfires, floods, storm surge, theft and escape of liquid (for example, a burst pipe).
It doesn't have the strongest complaints record. AAI Insurance, which issues AAMI home insurance policies, received the largest number of home insurance-related complaints (1,330) during the most recent financial period. Other very large insurers such as Allianz received around half as many complaints (642).
Like the majority of insurers, you aren't automatically covered for accidental damage.
We based our top pick for price on over 300 quotes we collected in 2023 for 10 different customer profiles. We got quotes in all major states in 3 areas: cities, suburbs and regional.
AAMI offered the cheapest policy on average by $177. Budget Direct was the second cheapest on average ($1,365). We didn't consider any other features since the focus of this top pick is cost.
Keep in mind, prices can vary a lot depending on where you live and the type of property you own. AAMI was not the cheapest in all cases.
All of the top picks above were carefully researched and chosen by our senior writer for insurance Gary Ross Hunter. Gary is the insurance expert at Finder, holds a Tier 1 General Insurance (General Advice) certification and has been helping Australians find good value cover for over 5 years.
Cheap home insurance in your city
As part of our awards, we got quotes for specific cities too. Keep in mind that these are only individual quotes, not averages, so your prices will be different. However, the research suggests Budget Direct is often the cheapest provider in the 4 big Australian cities.
Security features: windows and doors secured by deadlocks, no security alarm, no security devices
Date of purchase/moving into property: Jan 2000
Value of contents: $100,000
No previous claims
No retired person living on property
Rebuild cost: $600,000
Other descriptions: brick veneer walls, terracotta tiled roof, no verandas
Excess: $500
Occupant DOB: 01/03/1962
Which company has the cheapest house insurance?
There's no universally cheapest home insurance company but our research spills some interesting industry secrets.
We got quotes from 20+ Australian home insurers and found a difference of $1,362 between the cheapest and most expensive policies.
Just check out the least and most expensive policies for the same $600,000 home. The point is, you could find a cheaper policy just by shopping around and comparing your options.
Decide what kind of policy you want: building, contents or both. In most cases, you'll also be asked to calculate your sum insured. This is how much it would cost to rebuild your home from scratch if it was destroyed. Home insurance calculators can help you work this out.
Improve your home security
Security systems and alarms can act as a deterrent to thieves, while smoke alarms can reduce the risk of your home being damaged by fire. Installing these items can reduce the cost of your home and contents premiums.
Compare quotes from multiple insurers
Don't simply accept the first home and contents insurance quote you get. Compare quotes from at least 3 or 4 different insurers – this is quick and easy to do online – and shop around for a deal. If you're buying home insurance for the first time, most brands offer discounts for new sign-ups.
Make your home disaster-resistant
You can sometimes save by adding features to make your home more resistant to storms and natural disasters – for example, by installing storm shutters, reinforcing your roof and modernising your heating and electrical systems to reduce the risk of fire or water damage.
Pay your premium annually
If you can afford to pay your home insurance for the entire year in one go, it's often cheaper (some insurers will charge you around $40 less).
Search for discounts
Some sign-up discounts can save you lots, but watch out – brands often increase costs the following year to make up for the deal you've just got. (To avoid this 'loyalty tax', review your policy every year).
Review your policy at least once a year
The climate crisis and rising cost of living are driving home insurance prices up. Shop around every year and you could save a lot. It's very common for insurers to significantly increase prices once you've been with them for more than one year.
For years Australian consumers have been offered a discounted price as new customers, whilst existing customers often pay a higher price when those discounts disappear or they're rated higher as an existing customer, even though they are the ones that have been loyal. This happens across many industries but is particularly prevalent in the Insurance industry as it can be part of the strategy to attract new customers. In fact, research shows that Australian consumers are paying up to $3.6 billion in 'loyalty taxes' and 10 million Australian households were affected by insurance related loyalty tax. Research in 2019 showed, on average, customers renewing their insurance policy paid 34 per cent more than new customers. In the UK, the FCA has ruled that a customer renewing insurance policies will pay no more than they would if they were new customers. A decision that may roll out to Australia in the coming years and at Honey we would welcome.
The price you pay for cover is generally based on:
The policy you choose. A combined home and contents insurance policy will generally cost more than a building-only insurance policy.
The location of your home. Insurance providers draw on claims data, crime rates, flood and fire risk factors among others to help assess your risk level. You will also typically pay more if your home is built on sloping land.
The type of home you own. Older homes typically pay more. Insurers may also take into consideration the design features and construction standard of your home.
How your home is used. If your home is left unoccupied for long periods of time you may be required to pay an additional cost for cover.
Your claims history. Insurers may charge you more depending on the claims you've made.
How much could you save?
Finder's head of editorial and homeowner Sarah Megginson recently saved $1,415 by switching to Honey home insurance after 11 years with the same insurer.
She's not alone. 74% of homeowners admit to having never switched home insurance or switching more than 2 years ago.
You pay the same as buying directly from the home insurer. Better still, we regularly run exclusive deals that you won't find on any other site – plus, our tables make it easy to compare policies.
Unlike other comparison sites, we're not owned by an insurer. That means our opinions are our own and we work with lots of home insurance brands, making it easier for you to find a good deal.
We're here to help
Since 2014, we've helped 150,000+ people find home insurance by explaining your cover options simply and clearly. We'll never ask for your number or email. We're here to help you make a decision.
Questions you might still have
Yes, if you hold multiple policies with the same insurer you may be entitled to a discount on your home and contents premium. Many insurers will also apply a discount to your premium if you purchase your insurance online.
Yes. We got over 300 quotes from 21 popular Australian home and contents insurers providers including Allianz, AAMI and Budget Direct. We found a difference of $1,362 between the cheapest and most expensive policies.
Contents insurance costs around $29 extra per month on average to add to your buildings insurance policy, according to Finder's 2023 pricing research. That seems like a lot more to pay, so it may not be for everyone. However, if you don't think you could afford to replace your belongings if they were destroyed, contents insurance probably is worth it. Keep in mind contents includes furniture, white goods and carpets, floating floor boards, blinds or curtains, electronics, clothing and jewellery.
To avoid your prices increasing significantly, call your insurer to see what they can do and shop around. Specifically, look for an insurer that has a different underwriter to your current provider as they will likely assess your risk-level differently.
Does the insurer provide discounts for Seniors Card holders?
Sign up online to take advantage of online discounts - just keep in mind that you might not be able to contact these companies over the phone or in-store as they operate as online businesses.
Try to compare policies with other brands at least once a year. Many home insurers offer discounted policies for new customers in the first year, after which the premium will most likely increase.
It's not a good idea to lower your sum insured amount. If you did this and your home was totally destroyed by an insured event like a storm, fire or flood, you would still have to pay thousands of dollars to have it rebuilt. This is called underinsurance and it can financially cripple you if you're not careful. To learn more about how to avoid it, head to our underinsurance guide.
Gary Ross Hunter is an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, news.com.au, The Telegraph, Explore Travel and Escape. Gary holds a Kaplan Tier 1 General Insurance (General Advice) certification and a Kaplan Tier 1 Generic Knowledge certification which meets the requirements of ASIC Regulatory Guide 146 (RG146).
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