Financial Strain Forces Families to Drop Insurance
Financial Strain Forces Families to Drop Insurance
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
Rising financial stress has prompted a number of families to cut back on essential insurance cover, with more than 66% of parents expressing anxiety over escalating insurance premiums.
These increases are primarily driven by more frequent and severe climate-related disasters, according to new research.
A report titled "Under Pressure," developed by Parents for Climate in collaboration with the Climate Council, reveals that Australia is now acutely feeling the impact of climate change, which has in turn pressured family budgets. This situation is exacerbated by rising oil and gas prices alongside severe weather events.
Nic Seton, CEO of Parents for Climate, noted, "It's heartbreaking to hear from so many parents through this research who have to cut back spending on essentials like food, heating, cooling and insurance just to make ends meet."
The study utilized data from a YouGov survey targeting parents with children under 25 still residing at home, examining their financial stress over the past year along with their views regarding the ramifications of climate change. Additional findings were sourced from a Parents for Climate survey.
Among the budgetary adjustments families made over the last year, 19% indicated they had foregone insurance coverage. Additional cost-saving measures included:
Two-thirds reduced home heating and cooling usage.
55% scaled back vacation expenses.
53% bought less food or opted for cheaper alternatives.
37% cut back on driving to save on fuel costs.
32% trimmed expenses on children's sports and recreational activities.
27% delayed or skipped bill payments.
21% increased credit card use or took additional loans.
14% moved in with relatives or relocated to more affordable housing.
The study highlights that renters are particularly vulnerable, being three times more likely to relocate to cut costs. They are also more likely to miss bill payments or forgo insurance.
Independent economist and Climate Council advisor Nicki Hutley commented, "Oil and gas are fuelling two crises at the same time: climate change and cost of living." She explained that the rise in global climate pollution is leading to more frequent unnatural disasters, thereby driving up insurance premiums.
The report suggests that Australians are now spending an additional $30 billion on insurance compared to ten years ago, leading to many at-risk households being priced out of the market. Research from the Actuaries Institute and Finity forecasts that premium hikes have increased home insurance affordability stress by 30%, affecting 1.6 million households in the past year.
The original source of this information is the "Under Pressure" report presented by Parents for Climate and the Climate Council.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
Fresh consumer attention on travel to the United States has again highlighted one of the clearest reasons Australians buy travel insurance: overseas medical costs can be severe, and the US is a destination where even a short hospital visit may become financially stressful. For travellers planning holidays, business trips, cruises that call at US ports, or family visits, the issue is less about whether to buy cover and more about whether the policy is strong enough for the trip. - read more
Recent consumer attention on complimentary credit card travel insurance is a timely reminder that 'included' does not always mean automatic, comprehensive or suitable for every trip. For many Australians, card-linked cover can be a useful benefit, particularly where it is backed by a reputable insurer and activated correctly. The risk is assuming it works like a standalone policy without checking the fine print. - read more
Canstar's latest travel insurance ratings have given Australian travellers another reminder that the cheapest policy is not always the best fit for a trip. With international holidays, cruises, domestic breaks and multi-destination itineraries all carrying different risks, the latest assessment reinforces the importance of weighing price against the practical strength of the cover. - read more
Renewed flight disruption around Bali has put natural disaster cover back in focus for Australian travellers, after volcanic ash activity in Indonesia again showed how quickly a straightforward holiday can become a logistical and financial problem. When airlines delay, cancel or reroute services, travellers may face extra accommodation, meals, transport, missed tours and rearranged connections, often before they have a clear answer on what their insurer will pay. - read more
Recent consumer guidance has put cruise holidays back under the travel insurance microscope, with Australian travellers being reminded that a cruise is not always treated the same way as a standard land-based trip. While many people assume a general policy will automatically protect them once they board, cruise travel can involve its own conditions, limits and exclusions. - read more
Travel insurance fraud involves deceitful practices that take advantage of insurance policies designed to offer protection against travel-related risks. It can manifest in various forms, such as exaggerated claims or false reporting of lost items, aiming to gain an undeserved financial benefit from the insurer. - read more
Travel insurance is an essential component of any overseas trip, especially for Australians. While exploring new destinations and experiencing different cultures can be exciting, it's crucial to be aware of the potential risks and challenges that can arise along the way. From unexpected medical emergencies to lost luggage or trip cancellations, unforeseen events can quickly turn your dream holiday into a nightmare. - read more
When it comes to travelling abroad, there's more to preparation than just packing the right clothes and booking your flights. For Australian travellers venturing overseas, assembling a financial travel kit is just as vital as a passport. This kit serves as your safeguard, ensuring that even when faced with the unpredictable, your journey remains as smooth as possible. - read more
Government travel advice, destination warnings and publicly known events can affect whether travel insurance responds to cancellations, medical costs, disruptions or other claims. Here's what Australian travellers should check before and after buying cover. - read more
Domestic travel insurance can help with some non-medical costs when travelling within Australia, such as cancellations, lost luggage, delays and rental car excess. This guide explains how it works, what it may cover and the common limits to check before you buy. - read more
Knowledgebase
Proximate Cause: The primary cause of loss in an insurance claim, which sets in motion a chain of events leading to the damage or injury.
No comments yet. Be the first to share your thoughts.