If you live in North Queensland, the gap between the cheapest and most expensive combined home insurance policy is over $3,800 a year. That is not a small difference — that is a full week’s pay for many households, spent on exactly the same type of cover. Based on over 152,000 quotes collected in April 2026, the average cheapest policy in that region sits at $3,281, while the most expensive averages $7,101. The same pattern plays out across every state and territory, just with different numbers.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
Property insurance in Australia is not a fixed cost. It shifts with your location, your home’s age, your claims history, and — most importantly — how you shop. The research from CHOICE and other sources shows that most people overpay because they renew without comparing, accept loyalty penalties, or pick the wrong excess. Here’s what you actually need to know.
Four Things That Change Your Premium — and One Term You Need to Know
One term you will see on every policy document is the excess.
What I tend to notice is that people pick the lowest excess without realising they are paying for it every year in higher premiums. If you have not claimed in five years, that low excess has probably cost you more than it has saved.
How Much Does Each State Actually Pay? The Numbers That Matter
Premiums vary wildly depending on where you live. The table below uses data from over 152,000 quotes collected in April 2026, all with a $1,000 excess. The gap between cheapest and most expensive is not a few dollars — it is thousands.
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| State / Territory | Cheapest average premium | Most expensive average premium |
|---|---|---|
| ACT | $2,167 | $4,612 |
| NSW | $3,066 | $6,830 |
| NT | $3,505 | $6,632 |
| North Queensland | $3,281 | $7,101 |
| South Queensland | $2,590 | $5,737 |
| SA | $1,480 | $2,933 |
| Tasmania | $1,863 | $3,751 |
| Victoria | $2,107 | $4,335 |
| WA | $1,584 | $3,539 |
If you live in NSW and pick the most expensive policy, you are paying $3,764 more than someone who picked the cheapest. That is not a better policy — it is often the same level of cover from a different insurer. The difference is how that insurer prices risk in your postcode.
Location-based risks like bushfire, flood, cyclone, and crime levels drive these differences. Insurers use local claims data to set prices. If your suburb has had three hailstorms in five years, your premium will reflect that. But within the same postcode, prices between insurers can still differ by 40% or more.
Three Mistakes That Cost Australians Real Money
Renewing without shopping around
Insurers routinely offer cheaper premiums to new customers than to renewing ones. This is called the loyalty penalty, and it is baked into the pricing model. If you have held a policy for more than 24 months, your insurer is likely charging you more than they would charge a new customer for the same cover. The fix is straightforward: before your renewal date, get quotes from at least three other insurers. Some will match or beat your current premium to keep you. If they do not, switch. The process takes about 30 minutes online. You will need your current policy schedule to compare sum insured and exclusions.
Picking the wrong excess
A $300 excess sounds safer than a $1,200 excess. But the research shows that premiums drop by roughly 10% for every $500 increase in excess. If your premium is $2,500, moving from a $500 excess to a $1,500 excess could save you around $500 a year. Over five years with no claim, that is $2,500 in your pocket. The risk is that you need to have $1,500 available if something happens. For most people, the savings outweigh the risk — especially if you have an emergency fund. The optimal range is $1,000 to $1,500. Above that, the premium savings shrink.
Ignoring security discounts
Most insurers offer discounts for deadlocks, security screens, alarms, motion-sensing lights, and cameras. The discounts vary, but they add up. If you are paying for a monitored alarm system and not telling your insurer, you are leaving money on the table. A wireless video doorbell with motion detection and night vision is the kind of upgrade that some insurers recognise as a risk reduction. Check with your provider what specific security features qualify for a discount — then install them and report it.
How to Lower Your Premium — the Practical Steps
Compare policies the right way
Do not just look at the price. Compare the sum insured, the excess, the exclusions, and the claim limits for specific items. A cheap policy that excludes storm surge or underinsures your rebuild cost is not a bargain. Use comparison tools like the CHOICE home insurance review, which covers more than 50 policies from major insurers including NRMA, GIO, QBE, Budget Direct, and Youi. Get at least three itemised quotes with the same excess and coverage level. That is the only way to compare apples with apples.
Adjust your excess to the sweet spot
If your current excess is below $500, raise it to $1,000 and see what happens to your premium. Then try $1,500. The premium reduction between $500 and $1,000 is usually larger than the reduction between $1,000 and $1,500. Pick the point where the annual saving feels worthwhile against the risk of having to pay that amount out of pocket. If you live in a high-risk natural disaster area, some insurers offer excesses around $5,000 to bring down otherwise unaffordable premiums — but only consider that if you have the cash to cover it.
Bundle and pay annually
Combining your building and contents cover with the same insurer almost always costs less than buying two separate policies. Most insurers advertise this as a multi-policy discount. On top of that, paying the full year upfront rather than monthly removes any instalment fees or interest charges. The combined saving from bundling and annual payment can be 10–15% off the total premium.
Review your sum insured every year
If your home is insured for $800,000 but the rebuild cost is $600,000, you are paying for $200,000 of cover you do not need. Conversely, if building costs have risen and your sum insured has not moved in three years, you could be underinsured. Use the renovation and rebuild cost calculators most insurers provide to check your numbers. Adjust your cover to match the actual rebuild cost, not the market value of your property.
What is changing in the insurance market
Climate risk modelling is becoming more granular. Insurers are increasingly using property-level data — not just postcode-level — to set premiums. That means two houses on the same street could see very different renewal prices depending on flood mapping, bushfire proximity, and local claims history. Over the next few years, expect premiums in high-risk areas to rise faster than the national average. The countermeasure is the same: shop around, raise your excess, and invest in security features that insurers recognise.
Frequently Asked Questions
Will switching insurers affect my claim history? ▾
Can I negotiate with my current insurer? ▾
Does a higher excess affect my payout? ▾
What if I live in a bushfire or flood zone? ▾
Do I need contents insurance if I rent? ▾
How often should I review my policy? ▾
The One Thing That Changes Your Premium More Than Anything Else
The single biggest factor in what you pay is not your postcode, your home’s age, or your claims history. It is whether you compare. The data from over 152,000 quotes shows that within every state and territory, the gap between the cheapest and most expensive policy is measured in thousands, not hundreds. That gap exists because insurers price risk differently, and most people never check what else is available. If you take one thing from this article, let it be this: set a calendar reminder for two weeks before your renewal date, get three quotes, and decide from there.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read Coastal Property Owners: Is Your Insurance Prepared for Rising Tides and Storm Surge?.
Sources and Further Reading
Renovating? Common Property Insurance Mistakes Costing Aussies Thousands — A practical look at how home renovations affect your cover and premium, and what to update with your insurer.
Strata vs Individual Property Insurance: Which Coverage Do You Really Need in Australia? — If you own an apartment or townhouse, this breaks down when strata cover is enough and when you need your own policy.
CHOICE (2026). How to save money on home insurance. 🔗
Best Insurance Hub (2025). Effective Ways to Reduce Home Insurance in Australia. 🔗
