Exxy excess: 4.5 million Aussies avoid insurance claims to cap costs
Millions of Australians aren't claiming on their insurance out of fears of financial repercussions, according to new research by Finder.
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A Finder survey of 1,017 respondents revealed 21% – equivalent to 4.5 million people – have avoided making a claim in the last year because they were worried their premiums would rise.
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The research found almost 1 in 10 (9%) had not put in a claim on their home insurance, while the same proportion held off making a car insurance claim.
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A further 7% of Australians opted not to make a health insurance claim to keep their premiums steady, while 4% had refrained from making a claim on their pet insurance.
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Taylor Blackburn, personal finance and insurance specialist at Finder, said insurance is becoming a product people pay for but feel they can't afford to use.
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"Insurance is meant to offer peace of mind — but for millions of Australians, it's become a conundrum.
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"If they get help when they need it, they risk a hike in their premium.
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"Is the value of the payout worth a more expensive policy? If it is a minor claim, many Aussies are choosing to sort the issue themselves."
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Blackburn said it was concerning that Aussies are avoiding claims on essentials like home and car insurance.
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"Skipping a claim might save you money short-term, but it can backfire if a small issue snowballs into a major one.
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"That's the real risk — turning a manageable cost into a crisis."
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Blackburn reminded Australians that making a claim on their health insurance won't cause their premiums to rise.
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"Rest assured that with health insurance you'll pay the same premium for the same product regardless of your age, health status, or claiming patterns."
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Blackburn said the data highlights the extent of the affordability crisis.
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"Opting out of pet or car claims is a signal that many households are walking a financial tightrope.
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"If fear of premium hikes stops people from using their cover, it undermines the very purpose of having insurance in the first place."
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Blackburn urged Aussies to do what they can to prepare for unforeseen costs by having an emergency fund.
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"I personally opt to keep my excess a bit higher to protect against major issues and deal with the minor ones with my rainy day savings.
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"No matter your provider or excess level, review your policy regularly, compare prices at renewal – especially sign-up offers – and make sure your cover actually matches your needs."
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In the last 12 months, have you avoided making an insurance claim out of fear your premium would rise for any of the following?
| Yes, for my house | 9% |
| Yes, for my car | 9% |
| Yes, for myself (e.g. injury, illness) | 7% |
| Yes, for my pet | 4% |
| Yes, other | 1% |
| No, I do not have any of these types of insurance | 6% |
| No, none of the above | 73% |
| Source: Finder survey of 1,017 respondents, June 2025 |  |
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Methodology
- Finder's Consumer Sentiment Tracker is a monthly recurring nationally representative survey of more than 60,000 respondents.
- Figures in this release are based on 1,017 respondents from June 2025.
- The Consumer Sentiment Tracker is owned by Finder and operated by Qualtrics.
- The survey has been running monthly since May 2019.
Sources
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