Explainer | The different types of insurance

There are lots of different types of insurance in Australia and it’s hard to know what insurance you need. Sometimes you don’t have a choice (legally) but to get insurance and sometimes it just makes sense. Here’s a quick snapshot of some of the most popular options and some pointers to help you think about what types you might need. 

Before we get started, remember that this is all a snapshot of general information, we’re definitely not trying to suggest it’s comprehensive. So, seriously before you buy any new insurance, make sure you read the paperwork to understand the details so you can decide whether it’s right for you. 

What are the different types of insurance in Australia?

‍There’s a lot about your life you can insure to give you that extra layer of protection for the unexpected. Some popular options include car insurance, home insurance, health insurance and life insurance. And don’t forget the newest kid on the life insurance block. Flip’s on-demand accidental injury insurance.

• Car insurance: Every driver living in Australia must have Compulsory Third Party (CTP) insurance. In most states and territories, CTP is included with car registration. Every time you drive your car, there’s a risk you might crash it, so CTP insurance covers compensation payments for people hurt or killed in car accidents, though it doesn’t cover damage to cars or other property. You can get comprehensive cover or third party property, fire and theft cover to cover damage to cars or property. Cover can differ between policies and insurers, so find out what’s covered before you buy.
• Home insurance: You can get home and contents insurance to cover the cost of repairing or replacing your home and/or your belongings in case of incidents like fires, storms, accidents or theft (remember, what you’re covered for depends on the cover you’ve bought). There is a huge range of home insurance policies with different inclusions and exclusions so it pays to do some serious research. Insurers use a complex system to calculate your premium depending on where you live, how much your things are worth and whether you want to be insured for an agreed amount or replacement value.
• Health insurance: Private health insurance covers some medical costs not covered by Medicare like some hospital fees, certain specialist doctor fees and ambulance cover (depending on the state you live in). You can get cover for extras like optical and dental for the costs of other services that Medicare doesn’t cover. It’s not compulsory in Australia but once you earn over a certain amount (and are over a certain age) you’ll be hit with the Medicare levy surcharge. Again, there’s a complex system to work out your premium and you’ll need to check the policy documents carefully to make sure you understand what you’re covered for.
• Life insurance: If you or your partner have an accident or serious illness that means you can’t work anymore (or for an extended period), or if one of you dies, it can have serious impacts on your finances and way of life. It’s not nice to think about but these things happen and it can pay to prepare for the worst. There is a huge range of life insurance policies to choose from that can pay either lump sums or regular payments if you die, get a terminal illness, are permanently disabled or can’t work because of injury or illness. 
• Mobile phone insurance: If you’re someone who runs your life through your phone then you’ll want to be able to get it fixed quickly, with as little impact to your bank balance as possible. This type of insurance usually covers damage, loss and theft of your device. Lots of the time your mobile service provider will give you an insurance option, but it might also be worth checking that your phone isn’t covered by any of the other insurance you have, like contents insurance.  

So, what kind of insurance is Flip?

Flip is a kind of life insurance, to get really specific it’s accidental injury insurance. What makes it the first of its kind in Australia? It’s on-demand, so you can get cover for a range of accidental injuries just on the days or weeks you feel most at risk. That means rather than paying years of premiums on a policy you can pick and choose when you want to be insured, whether it’s for a week or just the weekend.  It’s also lightning fast sign-up with instant activation, so flipping your cover on and off is as quick and easy as flipping a switch. 

While we try to be as simple and straightforward as humanly possible, there are still things about the product you need to understand before purchasing. So, you can see exactly what’s covered or you might like to check out how having Flip gives pro-snowboarder Michaela peace of mind and how Flip helped Jake recover from a climbing injury.

What kind of insurance do I need?

What insurance you might need depends on a whole range of things like your budget, assets and, of course, your lifestyle.

And insurance is a heavily regulated industry, so we can’t give you that kind of financial advice. But we can point you in the direction of some great general info and resources that the government has put together to help you work out what kind of insurance you might need.

Here are some of our go-to sources for helpful info:

• Car insurance: Find out what to look for when buying car insurance and get tips on getting the best price and protection
• Home insurance: Discover the different types of home insurance and how to choose the right protection for your home
• Health insurance: Get your head around health insurance including what’s covered by Medicare and what’s covered by private health insurance to help you decide if you need cover
• Life insurance: Learn all about life insurance and use the life insurance calculator to work out if you need it , how much cover you might need and what expenses it would cover
• Mobile phone insurance: Figure out if you need mobile insurance and even understand how it compares to Flip.

Good luck out there in insurance-land

Learning about insurance isn’t everyone’s favourite hobby but it can be totally worth your time. We hope our insurance explainer has helped you on your way, and if you’ve got any questions about Flip, on-demand insurance or accidental injury cover, check out our FAQs or hit the chat button now.

_{Disclaimer
Flip advice is general in nature. We don’t take into account your personal circumstances, so please consider how appropriate it is for you before taking action. It’s important to read our Product Disclosure Statement and Financial Services Guide and Target Market Determination before signing up, too.}

_{HCF Life Insurance Company Pty Ltd ABN 37 001 831 250, AFSL 236 806 (HCF Life) is the issuer of Flip Insurance. Flip Insurance Pty Ltd ABN 71 648 680 960, ARN 001288198 (Flip Insurance) is a wholly owned subsidiary and authorised representative of HCF Life. HCF Life is a wholly owned subsidiary of The Hospitals Contribution Fund of Australia Limited ABN 68 000 026 746, AFSL 241 414 (HCF), and acts on its own behalf.}

_{Premiums for Flip cover are paid to HCF Life. HCF receives commission of 80% of HCF Life’s underwriting profit each year calculated as premiums less claims and expenses. Flip Insurance may receive remuneration from HCF Life for the financial services it provides in relation to Flip cover. Flip Insurance and HCF Life employees receive a salary, paid by HCF Life, for the financial services they provide in relation to Flip cover. In addition, HCF, HCF Life and Flip Insurance employees may also receive an incentive depending on the total revenue and profitability of the products which they sell. The portion of this attributable to Flip products will not exceed 10% of HCF Life’s premium revenue earned from Flip cover.}