It may not pay to stay
From 1 July 2019, your renewal notice will not only indicate the price for renewing your home insurance policy, but will also show you what you paid for your policy last year. You will therefore be able to work out how much your premium has changed.
The Insurance Monitor has imposed this requirement on insurers, where they issue policies in NSW to individuals or small businesses, for home, motor vehicle, personal effects (e.g. jewellery and clothing, art work) and commercial property insurance renewals.
The Insurance Monitor's research and monitoring of premiums has revealed that your loyalty isn't always rewarded by your insurance company. On average, premiums for customers who renew their policies pay between 25% to 30% more than those paid by new customers. Insurers also charge different prices for very similar policies, and these differences are large.
Don’t pay more than you need to – look closely at your insurance renewal and get the right policy for your needs. Remember:
- Check your quote
- Compare other providers
- Choose the best value.
It may not pay to stay.
What you need to know
It may not pay to stay ...
See our Discussion Paper: Pricing differences: New vs existing customers for further information about our research on the loyalty tax in insurance.
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Our Insurance Premium Survey article shows there are large variations in the premiums charged by different insurers for policies offering identical levels of cover.