1. ❌ Choosing the Cheapest Policy Without Reading the Fine Print

It’s tempting to pick the lowest premium, but that often means:

• Higher excess
• Lower coverage limits
• Strict exclusions (like no flood or theft cover)

✅ Tip: Balance affordability with protection. Always read the Product Disclosure Statement (PDS).

2. ❌ Not Updating Insurance After Major Life Changes

Getting married? Having a child? Buying a home? These milestones change your insurance needs.

✅ Tip: Review your policies annually or after major events to ensure your family and assets are properly covered.

3. ❌ Underinsuring Your Home or Contents

Many Australians underestimate what it would actually cost to rebuild their home or replace all possessions.

✅ Tip: Use an online calculator (like from NRMA or Suncorp) to estimate replacement value. Don’t forget hidden costs like demolition or debris removal.

4. ❌ Ignoring Income Protection

Most people insure their car — but not the income that pays for it.

✅ Tip: Income protection can cover up to 70% of your earnings if you’re unable to work. It’s especially vital for self-employed people and freelancers.

5. ❌ Letting Policies Auto-Renew Without Comparison

Insurers often raise premiums each year — but hope you won’t notice.

✅ Tip: Before your policy renews, compare it with other providers using tools like iSelect, Finder, or Compare the Market.

6. ❌ Overlooking Extras in Health Insurance

Are you paying for things you don’t use (like pregnancy cover or orthodontics)? Or missing out on services you do need (like physio or mental health)?

✅ Tip: Tailor your extras based on your current lifestyle — not what you needed 5 years ago.

7. ❌ Forgetting to Insure Your Digital Life

In 2025, our digital assets (photos, crypto, online identities) are just as valuable as physical ones.

✅ Tip: Look into cyber insurance and digital asset coverage if you store sensitive data, run a business, or own crypto.