Aussies three times more likely to insure cars than themselves: survey

Whilst almost 80% have car insurance, only one-third hold life insurance.

Australians are nearly three times more likely to insure their cars than themselves, reflecting a growing national crisis in access to affordable financial advice, according to a survey by the Council of Australian Life Insurers (CALI). 

The survey, which polled over 5,000 working Australians, found that whilst almost 80% have car insurance, only one-third hold life insurance.

“The advice accessibility crisis in this country is leaving far too many people underinsured and unprotected when it comes to their future financial security,” said CALI CEO Christine Cupitt. 

She added that Australians’ advice needs are unmet, particularly for those unable to afford a financial adviser amidst the ongoing cost of living crisis.

Nationally, 79% of Australians insure their motor vehicles, 62% have home and/or contents insurance, 66% hold health insurance, and just 34% have life insurance.

Amongst Australians aged 55 to 64, or those nearing retirement, motor vehicle insurance is the top priority (90%), followed by home and/or contents insurance (82%), health insurance (66%), and life insurance (29%). 

For mid-career workers aged 35 to 54, motor vehicle insurance leads (84%), with home and/or contents insurance at 69%, health insurance at 66%, and life insurance at 38%. 

Amongst career starters aged 18 to 34, motor vehicle and health insurance are equally prioritised (68%), followed by home and/or contents insurance (45%) and life insurance (32%).

As cost of living pressures persist, the survey revealed that nearly half of Australians would cut additional superannuation contributions first, potentially risking their future financial health. 

On average, Australians are almost three times more likely to drop life insurance from their budgets compared to car or home insurance.

Australia's life insurers are limited to offering only general advice, yet CALI's research showed that over 40% of respondents want personalised advice to determine the level of cover they need and the best products for them.

Under tranche two of the government's Delivering Better Financial Outcomes legislation, life insurers would be allowed to provide personalised advice to customers upon request, at no extra cost.

"Less than a quarter of people are telling us they want basic information only, proving just how critical financial advice reforms will be to giving Australians the kind of advice they want, when and where they want it," Cupitt said.