The public has been urged to shop around for their insurance following the release of a Victorian state government report showing wide variations in premium pricing.
Professor Allan Fels, the Fire Services Levy Monitor, says the report shows large variation in household property insurance for identical properties across different insurers.
In once case, insuring the same home in Echuca for $300,000 attracted premium quotes ranging from $339 and $1166, a difference of more than 340%.
Fels says the report highlights the fact the property insurance market is not as competitive as the industry maintains.
“It’s clearly important for consumers to ensure suppliers do provide competitively priced products by being willing to seek out the cheaper option and switch between insurers if necessary,” he says.
“Our monitoring shows that there are big differences in the range of insurance premiums currently available.
“If consumers act on this knowledge they could save, in some cases, hundreds of dollars.”
The Victorian Government launched the Fire Services Levy Monitor to ensure that insurers passed on the full savings from the abolition of the Fire Services Levy. According to the Monitor, it has already received more than 1500 calls and 130 emails from the public.