Consumers are being urged to shop around for home insurance, after the watchdog found variations up to $1700 in what insurance companies are charging for policies covering identical houses in the same suburb.
On average, a difference of up to $1100 for basic home and contents policies was found when comparing quotes for identical properties across 11 different NSW suburbs, according to the Insurance Monitor.
“It’s very concerning there are such big differences in prices quoted for the same property. It suggests that competition is not fully effective in this industry,” Insurance Monitor’s Professor Allan Fels AO said in a statement on Tuesday.
He said insurers are ignoring calls to list last year’s policy cost in their renewal insurance notices and there needs to be greater transparency.
Research by the Emergency Services Levy Insurance Monitor found the difference between the cheapest and most expensive quote in the Blue Mountain’s suburb of Medlow Bath was almost $1700 – with one insurer quoting a price more than twice as expensive as another.
The findings have been published in the latest quarterly report to NSW Treasurer Dominic Perrottet.
Originally published as NSW home insurance varies by thousands