Reviewing your insurance policies like a pro
Written and accurate as at: Nov 14, 2025 Current Stats & Facts
There’s nothing less exciting than reading over terms and conditions. But when it comes to insurance, regularly reviewing your policies is the only way to make sure you’re not underinsured, overpaying, or stuck with outdated cover that no longer suits your lifestyle.
Below, we take a close look at four key types of insurance every Australian should regularly check on.
Home insurance
Your home is likely your biggest asset, but is it adequately covered?
Ideally, you should be reviewing your home and contents insurance at least once a year, or whenever you renovate, upgrade, or purchase valuable items like electronics, appliances or furniture.
It’s also worth thinking about which of the two types of home insurance you have – sum-insured cover, which is based on an estimate of how much it would cost to rebuild your home, or total replacement cover, which pays whatever it actually costs to restore your home to its original standard.
There’s a greater risk that you’ll be underinsured if you have the former, but some insurers offer a ‘safeguard’ or ‘safety net’ feature, which boosts your cover by around 25% to 30% if your home is completely destroyed. This can provide a much-needed buffer in case rebuilding costs wind up higher than expected.
Don’t forget to familiarise yourself with the policy exclusions too. For example, even though most home and contents insurance covers for damage by fire, this might not apply if the fire is caused by negligence, recklessness, or failure to comply with fire regulations.
Health insurance
Whether you’ve gotten older, your health needs have changed, you’re welcoming a child into the family, or you’re just looking to cut unnecessary costs, it’s worth checking on your health insurance to make sure it’s still fit for purpose.
Start by looking over your current plan to see what exactly it contains. Many people find they’re either paying too much for extras they don’t use, or lacking coverage for services they now need, like physiotherapy or dental.
If cost is a priority, remember that any cheaper policies out there might come with exclusions or limitations on certain services. While they might seem like a good deal now, they might lead to large out-of-pocket expenses if you need to make a claim later on.
For those with extras cover, it’s also important to understand how benefit limits work. Annual limits reset each year, but lifetime limits don’t reset when you change insurers. That means if you've already reached a lifetime limit, switching policies won’t give you access to that benefit again.
Life insurance (including life cover, TPD and income protection)
If there’s been a big change in your circumstances – say you’ve had a baby, taken out (or paid off) a mortgage, or become the sole income earner in your family – your life insurance policy should reflect that new financial reality.
That applies whether you have a standalone policy or your life insurance is bundled with your super. Pull up your insurance policy and take a look at your current level of coverage – if there’s a gap between what it says and what you need, you might have to increase it.
Make sure you understand the exclusions on your policy too. Some exclusions apply regardless of the policyholder, while others are specific to your circumstances (such as certain occupational hazards or pre-existing medical conditions).
It’s also a good idea to review your beneficiaries to make sure they’re up to date. And keep in mind that if you nominate a child under 18 as a beneficiary, your life insurance provider will typically only pay the full amount to them once they turn 18.
Car insurance
When it comes to car insurance, start by checking what type of cover you have and whether it still fits your needs depending on your car’s value and how much you drive. For a quick rundown:
- Third party property insurance is a budget-friendly option if your car’s not worth much.
- Third party property, fire and theft insurance adds extra protection, which can be useful if you park on the street.
- Comprehensive cover offers peace of mind for everything from accidents to storms, fire and theft, and can be preferable if your car is essential or costly to replace.
You might be able to tweak your policy online by adding or removing certain optional benefits. You’ll just have to keep in mind this might affect your premiums.
And don’t forget to look at excesses (and whether it’s worth increasing yours to pay a lower premium), no-claim bonuses, and potential discounts if you bundle your insurance or install an alarm. A few smart choices could save you money without sacrificing the cover you need.
No matter which insurance policy you’re reviewing, always check the fine print in the Product Disclosure Statement (PDS) for what’s covered, what’s not, and how to claim.
