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.
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
A recent Australian travel insurance case has offered a sharp reminder that the most expensive travel risk is often the one no traveller expects. According to Finder, an Australian woman who became seriously ill while 19 weeks pregnant in Mallorca faced medical costs of more than $40,000 after being taken to hospital by ambulance. The ambulance component alone reportedly reached $12,000, with the remaining costs linked to hospital admission, testing and treatment. - read more
Travel insurance is a crucial aspect of planning a trip, especially for Australian travelers who venture far and wide. With the vast array of destinations Australians frequent, from exploring the natural wonders of the Outback to adventuring abroad, having a safety net in place can provide peace of mind. - read more
Travelling is one of life's greatest joys, but it's not without its risks. This is where travel insurance comes into play for Australians. It ensures peace of mind, knowing that you're covered for unforeseen events such as medical emergencies, trip cancellations, or lost luggage. - read more
Picture this: You're all set for your dream vacation. Suitcases packed, tickets in hand, and the excitement building. But then, an unexpected disappointment hits. Your flight is cancelled. Suddenly, your well-laid plans are thrown into disarray. - 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
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
Knowledgebase
Actuary: A professional who analyzes the financial costs of risk and uncertainty using mathematics, statistics, and financial theory.
No comments yet. Be the first to share your thoughts.