Surging construction costs, labour availability and the frequency of large claim events continue to put pressure on Australian insurance premiums, with new Compare the Market research revealing home and contents quotes jumped more than $300 in the five largest capital cities in the year to June 2026.  

The data shows the average indicative quote across national capitals rose almost $374 year-on-year, from $2,529.43 in June 2025 to $2,903.36 in June 2026 – a 14.78% increase. 

Sydney recorded the biggest dollar increase among the five capital cities assessed, with average quotes up $334.01, followed by Adelaide up $324.68 and Melbourne up $321.11. Brisbane and Perth were not far behind, with average quotes increasing by $310.62 and $308.71 respectively. 

Average home and contents insurance quotes – June 2026 

Based on average indicative home and contents insurance quotes available from Compare the Market and also from selected popular industry brands. Quotes for a typical low-set, 4 bedroom 2 bathroom, freestanding brick veneer home with tiled roof, insured for $700,000 with $80,000 in contents with a target excess of $1000 for both home and contents. Our home owner was a 30 year old male who lives alone with no previous claims. See notes for further information relevant to the pricing of the policies. Quotes collected every three months or as close as possible from a start date of 30/08/2024 – 01/09/2024.Your quotes will vary depending on your unique circumstances. 

Compare the Market Economic Director David Koch said the three-figure increases could be attributed to three different factors. 

“The first is inflation – it’s driving up the cost of everything from materials to labour and transport,” Mr Koch said. “That all means it’s a lot more expensive to repair or rebuild a house in 2026. 

“Big claims events are the second driver. Think back to those wild hailstorms that hit NSW and southeast Queensland last year – well they drove $1.78 billion in claims on their own. Unfortunately, Australian storm season bites hard. 

“But the third thing is how insurers set their prices. If you’re a customer you need to be asking, does my policy still offer me good value, or could I get a better deal elsewhere?” 

Mr Koch said the scale of the increases should be a wake-up call for households. 

“Remember these numbers are just averages – in some cases premiums could be going up a lot more,” Mr Koch said. “We hear from people who have seen their renewal notice come through hundreds – sometimes thousands – of dollars dearer.  

“Take my colleague Chris for example, his home and contents premium for a property in Brisbane’s west was up 146%, and he hadn’t even made a claim. Of course, he didn’t accept it – he shopped around and found a cheaper deal. That’s what everyone should be doing this year.” 

Car insurance premiums also accelerate 

It is not just home insurance putting pressure on household budgets, with Compare the Market’s data showing car insurance quotes climbed $193.63 in the year to June.  

Melbourne recorded the largest dollar increase, with average quotes up $285.03 year-on-year. This follows reporting from the Insurance Council of Australia showing a car is broken into every 42 minutes in Victoria – with the state’s total theft bill reaching $243 million, a sum higher than all other states combined.  

Average car insurance quotes – June 2026 

Based on average indicative comprehensive car insurance quotes available from Compare the Market and also from selected popular industry brands. We used a target excess of $1000 or as close as possible where this was not available. Quotes for a white 4-door 2020 Toyota Corolla driven 12,000 km on average per year by a 30 year old male driver. See notes for further information relevant to the pricing of the policies. Quotes collected Every three months or as close as possible from a start date of 30/08/2024 – 01/09/2024. Your quotes will vary depending on your unique circumstances. 

Mr Koch said motorists looking to save on their car insurance should check and make sure their policy details are correct.  

“Think of all your lifestyle changes over the past year – maybe you’ve moved house, you’re driving less, or you’re locking your car up in a garage – all of these can influence the premium you pay,” Mr Koch said.  

“And if you’ve been with the same insurer for a while, you could be missing out on the discounts available to new customers. A cheaper premium could be a simple switch away.”