How to save money on your home insurance

At a time when Australians are worried about the cost of living, there are many ways we can be savvy with our money.

When it comes to the all-important and necessary insurance policies for our homes, being aware of loyalty tax and checking you have the right policy can go a long way to helping with your monthly budget.

Loyalty tax alone could add an average of 34 per cent to a policy after the first year which adds up when you are counting precious pennies.

Knowing how to prevent making claims is where Honey makes all the difference.

Honey is Australia's first smart home insurance dedicated to preventing avoidable accidents that happen in the home. This is done through a completely re-imagined approach to home insurance that lets customers easily sign-up for the right level of cover by using third-party data to significantly reduce both the time and complexities usually associated with getting a quote. Customers are then provided with smart home technology to the value of $250 to help protect their homes from the 50 per cent of avoidable accidents that happen in Australian homes.

These sensors are designed to be placed around the home to help to alert homeowners to some of the three most common accidents that happen in the home, fire, theft and water leaks. If the sensors remain switched on, Honey reduces the premium and customers will receive an 8 per cent discount for each year their sensors are active.

Australians spent a whopping $4.9 billion in claims last year and 50 per cent of them could have been avoided.

Honey Insurance focuses on exactly how to avoid the fuss and bother of making a claim in the first place. They believe by empowering Australians to know what is happening in their home, they can avoid the stress of breakage, theft or damage. As most of us know, once a claim is made, it means our insurance premiums will rise and put more pressure on our bank accounts.

Honey customers get given $250 worth of tech to place in their homes which can detect the accidents that lead to claims.

And when you reduce the risk in your home, Honey reduces the premium by 8 per cent.

If you drive less, you pay less in premiums and in health insurance providers reward customers who show they are healthier. This approach is brand new to the home insurance market and is definitely the future.

Loyalty Tax: For years Australian consumers have been offered a discounted price as new business customers, while "loyal" customers pay a higher premium.

Honey Insurance is passionate about this subject and feel it is unfair for existing customers to subsidise new customers.

Now is the time for Australians to look at their current insurance policies and to compare providers.

With Honey it only takes three minutes to compare and switch thanks to the AI and third party they use to provide a quote. This cuts down the entire process to a handful and questions while you search for the best deal possible.

Honey wants you to have the best discount based on behaviour and by reducing the risk in your home - you are in a winning position.

These stats should help your switch to Honey:

When it comes to the all-important and necessary insurance policies for our homes, being aware of loyalty tax and checking you have the right policy can go a long way to helping with your monthly budget.