As insurance policy prices continue to sky-rocket, CHOICE has revealed which home and contents insurance policies you shouldn't invest your money in.
"We've compared over 50 home insurance policies across the market to help people find the best value policy that suits their needs and budget, particularly as the cost of living continues to place strain on households," says CHOICE insurance expert, Jodi Bird.
"We score each policy by balancing the cost with the features it offers, including cover limits and exclusions. Our comparison is 100% independent, and unlike other insurance comparison websites, we don't get paid by any of the insurers we're comparing," says Bird.
CHOICE compared policies using a sample of thousands of quotes. The higher the price score, the cheaper the policy in comparison to others.
CHOICE recommends avoiding the following home and contents insurance policies:
CGU Fundamentals
CHOICE Expert Rating: 46%
Price score: 53%
Features score: 41%
"This policy not only received the lowest overall score in our review, but was also given the equal lowest features score. If you're looking for an insurance policy that covers a variety of perils and is easy on the wallet, we recommend steering clear," says Bird.
Bupa Basic and AHM Basic
CHOICE Expert Rating: 47% (Bupa), 49% (AHM)
Price score: 57% (Bupa), 61% (AHM)
Features score: 41% (both)
"These two policies are actually issued by the same provider, and are almost identical. Neither of them include an underinsurance safety net, where the insurer pays out a certain percentage extra if you have a 'total loss' and it's discovered your home has been underinsured," says Bird.
Guild Home Elite
CHOICE Expert Rating: 52%
Price score: 25%
Features score: 69%
"This Guild policy looks good on paper, but its pricing leaves much to be desired, and it received the worst price score in our review. It's a strong performer when it comes to cover, but it's much more expensive than comparable premium cover policies," says Bird.
"If you're looking to save money on your home and contents insurance, make sure you avoid these low scoring policies. It's also a good idea to regularly assess how much your insurance is costing you, and see if you can find a better deal elsewhere. If you haven't switched for a while, you're likely missing out on savings," says Bird.
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Stock images: Getty, unless otherwise stated.
