Need to know
- When it comes to choosing a home insurer, trustworthiness and reliability are key
- RACQ came out on top for customer experience, while NRMA Insurance received the best result for claims
- On average nearly 80% of people plan to renew with the same insurer, but there are big differences between insurers
Home insurance protects you against loss or damage to your home and its contents. With floods, bushfires and other natural disasters becoming more common, it's essential to have.
But home insurance can also be expensive, so you want to make sure your insurance meets your expectations.
When we asked over 1200 home insurance customers about their experience with their home insurer, we found that the large majority (69%) rated their insurer as above average or excellent. But there are large differences between insurers.
On this page:
- Best insurer for customer experience
- Best value for money
- Most loyal customers
- Best for claims experience
- Most caring insurer
Best insurer for customer experience
- RACQ had the best results, with half of their customers rating them as excellent, another third rating them above average, and the rest (17%) rating them as average – not one respondent rated RACQ as below average or poor.
- RAC, RAA*, RACV, Apia, Youi, Suncorp, GIO and NRMA Insurance customers also rated above the average result for all insurers.
- AAMI and Budget Direct rated close to the average for all insurers.
- Allianz, Coles and Woolworths* rated below average.
- CommBank had the least happy customers, with almost half of their customers rating them as just average.
*There were small sample sizes for RAA (28) and Woolworths (26), so the results for these two insurers are indicative only.
Best value for money
With nine out of 10 policyholders reporting that their home insurance went up in price in the past year, and most of those increases being higher than expected, value for money is a key concern for consumers.
These insurers were rated as 'above average' or 'excellent' value for money:
- Youi (72%)
- RAA* (68%)
- RACQ (67%).
CommBank matched its poor customer experience results with another bottom of the rung placement. Just 33% of its customers rated it as above average or excellent value for money.
*There was a small sample size for RAA (28), so the result for them is indicative only.
Most loyal customers
While CHOICE always recommends that you get at least three quotes before renewing your home insurance, only just over half (52%) of our survey participants say they will 'probably' or 'definitely' shop around.
There are various reasons why someone might choose to not get new quotes each year – lack of time, for one. But we think the intention to renew with an insurer can still be taken as an indicator of customer satisfaction.
- RACV and NRMA Insurance customers are the least likely to shop around, with 24% and 30% respectively saying they'll probably or definitely shop around.
- Coles (65%), Budget Direct (63%) and AAMI (63%) customers are the most likely to shop around.
Almost half (48%) of our survey participants have been with their insurer for more than five years:
- GIO (76%), Apia (75%), NRMA Insurance (74%) and RACQ (71%) have the highest percentage of long-term customers
- Woolworths (12%)*, Budget Direct (22%), Allianz (34%) and AAMI (37%) have the lowest.
*There was a small sample size for Woolworths (26), so the result for them is indicative only.
Best for claims experience
Often you'll only know how good your insurer is when you need to make a claim.
The large majority (86%) of survey respondents said a good reputation for claims service is a very or extremely important factor when choosing their home insurer.
When we asked people who'd had to make a claim about their experience, 66% rated their insurer's performance as 'above average' or 'excellent'.
- NRMA Insurance received the best result, with 75% of their customers rating them above average or excellent.
- The above average and excellent ratings for RACV (68%) and AAMI (63%) were in line with the average for all insurers.
- Budget Direct (55%) and Allianz (53%) were at the bottom with nearly half of their customers rating the claims experience as average, below average or poor.
Most caring insurer
We asked respondents to rate their experience of feeling cared for as a customer.
- RAA* (74%) and RACQ (70%) customers were most likely to feel that care was 'above average' or 'excellent'.
- CommBank (34%) and Coles (33%) came in at the bottom of the list.
*There was a small sample size for RAA (28), so the result for them is indicative only.
How our survey was conducted
The CHOICE consumer insights team conducted a survey of 1212 policyholders of home insurance across Australia, carrying out fieldwork from 20 February to 14 March 2023. They applied quotas for representation in each age group, gender and location to ensure there was coverage in each state and territory across metropolitan and regional areas. Only current customers gave ratings for specific insurers.
Some insurers, such as RAA and Woolworths, only had small sample sizes (marked with an asterisk), so these results are indicative only.
We're on your side
In more than 60 years of making a difference for Australian consumers, we've never taken ads or sponsorship.
Instead we're funded by members who value expert reviews and independent product testing.
With no self-interest behind our advice, you don't just buy smarter, you get the answers that you need.
You know without hesitation what's safe for you and your family.
And you'll never be alone when something goes wrong or a business treats you unfairly.
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Stock images: Getty, unless otherwise stated.
