The festive season is a time for joy, family gatherings, and, unfortunately, the occasional mishap. Amid the gift-giving and travel plans, many Australians unknowingly rely on outdated or incorrect assumptions about their insurance. To help you avoid costly mistakes, we’ve debunked 12 common myths about home, travel, and personal insurance this Christmas.
1 “Life insurance is only for older people.”
This couldn’t be further from the truth. Life insurance is most affordable when you’re young and healthy, locking in lower premiums for future peace of mind. Whether you’re starting a family or building a business, securing life insurance early can protect your loved ones from unexpected financial burdens. You can also pay for it through your superannuation fund.
2 “My home insurance covers everything inside my home.”
Not necessarily. Many policies have exclusions or limits for specific items like jewellery, art, or high-end electronics. Review your Home and Contents insurance policy to ensure valuable gifts (like that new gaming console or designer watch) are adequately covered.
3 “I don’t need travel insurance for domestic holidays.”
Even within Australia, travel insurance can be a lifesaver. It covers unexpected disruptions like cancellations, lost luggage, or accidents in rental cars. Don’t assume Medicare will cover all medical expenses if you’re far from home.
4 “Christmas lights are harmless.”
Decorating your home with fairy lights? Ensure they’re safety-tested and properly installed. Many home insurance policies won’t cover damage from fires caused by neglected maintenance or non-compliant products.
5 “Contents insurance covers items outside the home.”
Think again. Items like bikes or prams left in public spaces often require additional coverage besides Home and Contents insurance. If you’re planning picnics or outdoor gatherings, check whether portable items are protected against theft or damage.
6 “Car insurance automatically covers me when driving interstate.”
Not all motor insurance policies include interstate coverage, particularly for optional extras like roadside assistance. Before a holiday road trip, confirm your policy’s terms, especially if you’re borrowing or renting a vehicle.
7 “Gifted items are automatically insured.”
If you’ve gifted or received something expensive, such as an e-scooter, remember to update your Home and Contents insurance. High-value or specialty items might not be included under standard policies.
8 “Natural disasters are always covered.”
Australia’s summer storms and bushfires can wreak havoc, but not all Home and Contents insurance policies cover flood damage or other natural disasters. Read the fine print and consider additional coverage if you’re in a high-risk area.
9 “My health insurance covers everything abroad.”
If you’re travelling overseas, your private health insurance may not cover emergency medical repatriation or other travel-specific needs. Comprehensive travel insurance is a must for peace of mind.
10 “Santa’s sleigh is safe with me!”
Hosting holiday events? Public liability insurance is crucial if guests injure themselves on your property. From slippery driveways to poorly placed decorations, make sure you’re covered.
11 “My pet is covered by my home insurance.”
Most Home and Contents insurance policies don’t include pet-related expenses, like emergency vet bills. Pet insurance is a separate product that can save you significant stress if Fluffy eats the tinsel again.
12 “Once I’ve bought insurance, I’m set for life.”
Your coverage should grow with you. Major life changes—moving house, upgrading valuables, or even changing holiday plans—can create gaps in your coverage. Review and update your policies regularly to ensure your protection is current. Been awhile since you’ve had a review? Talk to us.
Wrap-Up
Insurance myths can lead to financial heartache if left unchecked. This Christmas, give yourself the gift of security by reviewing your policies, asking questions, and ensuring you’re properly protected. Whether it’s your home, your holiday plans, or your future, having the right coverage in place means one less thing to worry about.
Need help untangling the fine print?
We’re passionate about helping our clients protect what matters most—whether it’s their home, their travels, or their future. Call us anytime on (02) 8268 2900 or for an obligation-free chat about how we can help you navigate your insurance needs with confidence.Get in touch!
Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Please consider whether the information is appropriate to your circumstance before acting on it and, where appropriate, seek professional advice.
