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.
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.
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.
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.
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.
"Insurance is meant to offer peace of mind — but for millions of Australians, it's become a conundrum.
"If they get help when they need it, they risk a hike in their premium.
"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."
Blackburn said it was concerning that Aussies are avoiding claims on essentials like home and car insurance.
"Skipping a claim might save you money short-term, but it can backfire if a small issue snowballs into a major one.
"That's the real risk — turning a manageable cost into a crisis."
Blackburn reminded Australians that making a claim on their health insurance won't cause their premiums to rise.
"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."
Blackburn said the data highlights the extent of the affordability crisis.
"Opting out of pet or car claims is a signal that many households are walking a financial tightrope.
"If fear of premium hikes stops people from using their cover, it undermines the very purpose of having insurance in the first place."
Blackburn urged Aussies to do what they can to prepare for unforeseen costs by having an emergency fund.
"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.
"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."
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 |  |
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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