Budget Direct Home Insurance

Budget Direct Home Insurance Review

Budget Direct is consistently one of the cheapest home insurance providers, but look elsewhere if you want a bunch of add-ons included.

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Our Verdict

  • Budget Direct offers came in at the low-mid price range end of home insurance policies on Finder, according to our research.
  • You get 30% off on your first year's premium — out of 10 providers, only Virgin offer a discount as large as this.
  • You'll need to pay extra if you want the sum insured safeguard. It's essentially extra cover that helps you avoid underinsurance.

Review by our insurance writer Gary Hunter

Compare the benefits of Budget Direct Home Insurance and get a quote

Name Product Building Cover Contents Cover Fire, Storm & Theft Damage Sum Insured Safeguard Online Discount Cheapest way to pay
Budget Direct Home & Contents Insurance
Save 30% on your first year's premium when you purchase a new combined Home & Contents insurance policy online. T&Cs apply.
Budget Direct Building Insurance
Save 15% when you buy a new Budget Direct Building Insurance policy online. T&Cs apply.
Budget Direct Contents Insurance
Get 15% off your first year's premium when you buy a Budget Direct Contents insurance policy online. T&Cs apply.

Compare up to 4 providers

Name Product Fire, Storm & Theft Damage Tenant Default and Damage Loss of Rent Accidental Damage to Home or Belongings Flood
Budget Direct Landlord Insurance


Save 15% on your first year's premium when you purchase cover online. T&Cs apply.

Compare up to 4 providers

What does Budget Direct Home Insurance cover?

Budget Direct offers 3 home insurance policies: Home and Contents Insurance, Home Insurance and Contents Insurance. It also does Landlord Insurance.

Here are some main insured events covered by a Budget Direct Home Insurance policy.

It's underwritten by Auto & General Insurance Company Limited and, like most insurers, you'll need to pay an excess when you make a claim – you can choose between 2. Policies come with a cooling-off period of 21 days, which is the industry standard. This means if you want to cancel within the first 3 weeks of taking out a policy – as long as you haven't made a claim – you won't be charged.

If you want more information on what's covered, you can see Budget Direct's PDS (product discloure statement) or check out our guide on general insured events.

Here's a breakdown of what's included

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Standard features

We've highlighted some benefits that Budget Direct will cover after it has agreed to pay out a claim from an insured event. For example, if a theft (insured event) happens at your home, you could claim the expense of replacing your locks (feature).
  • Replacement of locks
  • Open air contents cover (cover for contents out in the open at your home)
  • Temporary accommodation costs
  • Unattached equipment cover
  • Uninsured guests' contents cover
  • Contents while moving address
  • Mortgage discharge costs
  • Legal liability cover

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Optional add-ons

Looking for a more tailored policy? Budget Direct offers the following optional add-ons for an extra fee.
  • Accidental damage
  • Flood cover
  • Sum insured safeguard
  • Personal effects cover
  • Motor burnout cover
  • Commercial storage
  • Tenant default cover (Landlord Cover only)
  • Theft and malicious damage by tenant cover (Landlord Cover only)

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Here are some of the main exclusions from a Budget Direct Home Insurance policy. This means you won't be covered for any damages, repairs or legal liability that could arise.
  • Floods (unless you take out the optional add-on)
  • High tides (or any other action of the sea)
  • Wear and tear
  • Tree lopping or felling
  • Loss or damage caused by insects, birds, vermin or rodents
  • Underground water seepage or pressure
  • Loss or damage resulting from business purposes
  • Illegal acts or omissions
You can find a full list of exclusions in Budget Direct's PDS or find more information on general exclusions here.

How many complaints does Budget Direct Home Insurance have?

We looked at home insurance complaint data from the Australian Financial Complaints Authority (AFCA) between July to December 2020. The data explores different underwriters and compares their business size to the number of complaints processed.

Budget Direct is underwritten by Auto & General Insurance Company Limited, so we've compared their data to that of Youi and Westpac who have different underwriters.

It's also important to highlight that the released data is based on underwriters, not specific home insurance brands. That is, Budget Direct will share this data with other brands underwritten by Auto & General Insurance Company Limited.

Here are some things we noticed about Budget Direct and their underwriter:

  • Budget Direct has significantly less complaints lodged compared to Westpac, who are of a similar business size. This could mean that customers are happy with Budget Direct's policy or that they have the resources to deal with complaints internally.
  • From the 2 complaints received, 1 was resolved directly with the customer and the other had to be escalated by the AFCA.

When comparing insurers, keep in mind that insurers with a larger market share serve more customers, so can potentially get more complaints.

Here's the bottom line about Budget Direct Home Insurance

Budget Direct is one of Australia's most popular home insurers for a reason – it's one of the cheaper providers around. However, if you want cover for floods or accidental damage, you'll need to pay extra.

To compare Budget Direct's home insurance policies side-by-side with other providers, you can head here.

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Frequently asked questions

Leave a Budget Direct Home Insurance review

If you've held, or currently hold, a Budget Direct Home Insurance policy, we'd love to hear from you. Your reviews help other Australians decide if Budget Direct is right for them. Some reviews are from a survey commissioned by Finder.

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14 Responses

    Default Gravatar
    AnnaNovember 8, 2019

    Is accidental damage caused by flooding covered? ( Such as from forgetting bath taps on)?

      Default Gravatar
      AshNovember 9, 2019

      Hi Anna,

      Thanks for contacting Finder.

      No, Flood is not included on any of Budget Direct’s policies but you may have it added as it is one of their optional benefit. Also, each of their policy has an ‘Escape of liquid’ which will cover the damages caused by burst or leaking water pipes and overflowing sinks, basins, baths and appliances.

      I hope this helps.


    Default Gravatar
    LouiseOctober 26, 2018

    Do you offer renters insurance for a situation where I share my house with tenants?

      Avatarfinder Customer Care
      JeniOctober 28, 2018Staff

      Hi Louise,

      Thank you for getting in touch with Finder.

      Insurers like Budget Direct offer renter’s insurance for shared accommodation.

      You may see other brands that offer this type of home insurance from the link above. You can press the “Get a quote” button to compare quotes from different insurers.

      I hope this helps.

      Please feel free to reach out to us if you have any other enquiries.

      Thank you and have a wonderful day!


    Default Gravatar
    G.seifuApril 30, 2018

    Dear sir/madam,

    I am looking to insure a family home that was built in 2000, in Sunshine West, Vic, 3020. I have been insured with API Insurance for the last 10 years and have not claimed for anything for over 10 years. Recently APIA increased the premium to $55 a month, I decided to look for a home insurance at a cheaper rate with any suitable insurance agent.

    Your help in recommending a cheaper and reasonable home insurer is appreciated.

    With kind regards,
    G. Seifu

      Default Gravatar
      NikkiApril 30, 2018

      Hi G,

      Thanks for your message and for visiting Finder.

      Ideally, it’s good to continue with the insurance company you are currently with since you’ve been with them since 2000. To understand why your home insurance has become more expensive, you may want to refer to our guide on home insurance cost across Australia. The page also provides tips to reduce your house insurance cost.

      If you are decided to change providers, you may compare your options from our list of cheap home insurance. On the page is a comparison table you can use to see which insurer suits you. You can start comparing quotes between insurers by clicking on the “Get a quote” button.

      As a gentle reminder, please ensure you review the relevant Product Disclosure Statements/Terms and Conditions before purchasing a policy.

      Hope this helps! Feel free to message us anytime should you have further questions.


    Default Gravatar
    FaiyazMarch 16, 2018

    I looking a home insurance

      Avatarfinder Customer Care
      JeniMarch 16, 2018Staff

      Hi Faiyaz,

      Thanks for getting in touch with finder. As I read, you mentioned that you are looking for a home insurance. Would you mind letting us know exactly how we can help you further?

      Thank you.


    Default Gravatar
    JoyceSeptember 16, 2017

    i simply want to buy landlord insurance with content $30,000. The insurance must strongly protect if lost rent payment by tenant. Because i have already have insurance with RACV building and content. The property will be renting out on 23/9/2017

      Default Gravatar
      MariaSeptember 16, 2017

      Hey Joyce,

      Thank you for reaching out to us.

      You may compare your options from our list of Landlord Insurance. On the page, is a comparison table you can use to see which insurer suits you. Once you’ve chosen an insurer, you may click on “Go to site” to be directed to their page where you can start your request for a quote.

      Before applying, please ensure that you review the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions.

      I hope this helps.


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