Relaxed attitude towards insurance... New data shows a growing problem

March 02, 2016
Amanda Paterson

New research looked at by Mortgage Choice Penrith highlights the cavalier attitude Australians are taking towards insurance.

Looking at the Mortgage Choice’s inaugural Financial Confidence survey, Penrith Mortgage Broker, Paul Holland could see that one in every five Australians don’t feel it is important to insure their vehicle.

 When respondents were asked whether or not they had a form of car insurance, 21.6% of Australians said ‘no’.

 More interestingly, of those surveyed in New South Wales, one in every three respondents said they did not have compulsory third party insurance. In New South Wales, compulsory third party insurance is not included in a vehicle’s registration fee and must be purchased separately.

 Local Penrith Mortgage Choice mortgage broker Paul Holland said he was shocked to see that some Australians clearly consider insurance to be a ‘good to have’ rather than a ‘must have’.  

 “It really makes you wonder how many Australians don’t have the right insurance policies in place for their personal situation.”

 “It is clear many Australians take a very relaxed attitude towards insurance. They do not consider insurance to be essential and often don’t think about insuring their vehicles or other assets,” Mr Holland said.

 According to research conducted by the Financial Services Council*, one of the most important assets Australians forget to insure is their income, with the data showing just 31% of Australians have adequate income protection.

 “In the same way that it is important for Australians to properly insure their vehicle in the event that unforeseen circumstances arise, it is also essential for Australians to properly insure their income,” he said.

 “A person’s income is the biggest and most significant asset they will ever have, so it makes sense to protect it.

 “While the majority of superannuation funds offer some level of income protection cover, this cover is often not adequate,” Mr Holland said.  

 “It is important for Australians to check and make sure whatever income protection insurance they currently have is adequate. If it isn’t, it is vital that they do something about it, before it is too late.”

 When looking for a home loan in the Penrith area Paul offers sound advice and emphasises the importance of insurance and reviewing your protection to make sure it’s sufficient.

“There is a growing trend of underinsurance in Australia. More education is needed to reverse this trend immediately.”

 For more information on retirement and/or your financial advice options, call 02 4737 8499 or visit www.mortgagechoice.com.au/paul.holland

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