Travel Insurance Online :: News

Share this news item!

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.

Published:Monday, 25th Nov 2024
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Allianz Partners Highlights Risks of Travelling Uninsured

12 Nov 2025: Paige Estritori

Recent research conducted by the Insurance Council of Australia (ICA) and the Department of Foreign Affairs and Trade (DFAT) has unveiled a concerning trend: approximately 14% of Australian travellers embark on international journeys without any form of travel insurance. This statistic has prompted Allianz Partners to urge Australians to reconsider the importance of securing adequate coverage before travelling abroad. - read more

Unveiling Hidden Exclusions in Travel Insurance Policies

12 Nov 2025: Paige Estritori

Australian travellers are being urged to carefully review their travel insurance policies to identify potential exclusions that could affect their coverage. Legal expert Peter Carter from Carter Capner Law highlights that certain activities, such as riding motorbikes or jet skis and consuming alcohol, are often classified as high-risk by insurers. Incidents occurring during these activities may lead to claim rejections. - read more

Qantas Travel Insurance Honoured with Mozo Experts Choice Award 2024

04 Nov 2025: Paige Estritori

Qantas Travel Insurance has been recognised in the 2024 Mozo Experts Choice Awards for Travel Insurance, showcasing its exceptional value for their Annual Multi Trip Travel Insurance policy. - read more

SCTI Highlights Top 10 Costliest Travel Insurance Claims of 2024

04 Nov 2025: Paige Estritori

Southern Cross Travel Insurance (SCTI) has unveiled its top 10 most expensive international travel claims made by Australian travellers in 2024, shedding light on the significant financial risks associated with unforeseen incidents abroad. - read more

Allianz Partners Highlights the Risks of Travelling Uninsured

27 Oct 2025: Paige Estritori

Recent research conducted by the Insurance Council of Australia (ICA) and the Department of Foreign Affairs and Trade (DFAT) has revealed a concerning trend: one in seven Australian travellers embark on overseas trips without any form of travel insurance. This statistic has prompted Allianz Partners to urge Australians to reconsider the importance of securing adequate coverage before travelling abroad. - read more

Click for more Insurance News

Travel Insurance Articles

Australia's Most Affordable Destinations for Budget-Conscious Travelers

Australia, renowned for its stunning landscapes and vibrant cities, can seem dauntingly expensive for travelers. However, exploring this vast country on a budget is not only possible but increasingly popular among Australians. The thrill of uncovering hidden gems and experiencing diverse cultures without overspending has made budget travel a desirable option for many. - read more

Travel Troubles: How Travel Insurance Protects You from Unexpected Events Abroad

For many Australian travellers, setting off on a global adventure is an exciting prospect. Yet, amidst this excitement, it's crucial to acknowledge the unexpected twists and turns that could arise. That's where travel insurance steps in. Not just a safety net, it serves as a vital component of travel planning, providing peace of mind as you explore the world. - read more

Cut Costs, Not Experiences: How to Plan a Budget-Friendly Australian Road Trip

Australian landscapes are a canvas of breathtaking vistas, and road tripping offers an intimate brush with this vast, picturesque continent. The allure of the open road, the freedom to explore quirky roadside attractions, and the opportunity to discover secluded spots creates an excitement unique to this mode of travel. - read more

Clever Ways to Save on Accommodation: Budget Travel Hacks for Aussies

The concept of travel in Australia inherently brings to mind sweeping landscapes, rugged coastlines, and vast outback adventures. For many Australians, the dream of traversing this scenic wonderland is often tempered by the cold reality of expenses, with accommodation often being a prominent budgetary concern. Yet, far from dimming the wanderlust, this challenge invites a more clever approach to journeying through the land Down Under. - read more

Japanese Cherry Blossoms: An Aussie’s Seasonal Packing List for Spring

Japan's springtime is an unfolding story of colour and culture that captures the hearts of travellers worldwide. As the winter snow melts away, the country is draped in a vibrant pink hue, heralding the arrival of the much-anticipated Sakura season. This period is not just a natural spectacle but also a timeless symbol of renewal and hope in Japanese culture. - read more

Knowledgebase

Term Life Insurance:
A life insurance that provides a cover for a specific period of time - usually one to five years or until the insured reaches age 65 or 70.

This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.

IMPORTANT: We do not provide financial product advice or credit assistance. We act solely as an introducer and refer enquiries to licensed third-party intermediaries, insurers, and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.