Under insurance and Gen Z | Are you at risk?

What does underinsured mean?

Being underinsured means you don’t have enough insurance to cover your losses if something goes wrong like accidents, illness, fire or theft. 

People get insurance to protect themselves from losses they wouldn’t otherwise be able to pay. Having no insurance means that if something bad happens and you get hurt, sick or lose or damage property, you’ll need to foot the bill yourself. 

And if you don’t research your options properly (including the dreaded fine print), you might end up over-insured (where you’re paying for cover you don’t really need) or underinsured (where you’ll have to cover your losses). With cost of living pressures squeezing budgets, it’s crucial to get the balance right.

Why insurance is important when money is tight

If you had access to unlimited money, you wouldn’t need insurance because your pots of gold would save the day. But most of us aren’t in that position. Prices for everyday essentials like food, bills, rent and petrol are rising, leaving less money for fun stuff, saving for a house deposit or covering your butt if something goes wrong. There are plenty of ways to save money that don’t include ditching or avoiding insurance. And making a smart investment in the right insurance now can avoid financial stress down the track. It’s well worth considering.

Gen Z and insurance

If you’re a typical Zoomer, you most likely don’t own a home or have kids yet, and you’re probably in pretty good health. You might still be covered by your parent’s health or home and contents insurance. But it’s still worth assessing your position and making a conscious decision about insurance. 

Around half of Flip’s customers are under 30, suggesting accidental injury insurance is hitting the mark for Gen Z. We think being 100% digital, affordable and on-demand could have something to do with it. Also, with 87% of Zoomers exercising three or more times a week, accidental injuries are on the cards.

Ask yourself things like:

• If you tore a hamstring and needed to see a physio, how would you pay for it?
• If you crashed your bike and chipped a tooth, could you afford to fix your smile?
• And what about your mangled bike? Have you got the money to repair or replace that?  

Some people think Medicare and health insurance will cover everything, but that’s usually not the case in situations like these. 

And if you think insurance is out of reach, maybe take a look at some of the newer, more affordable options available like Flip’s insurance for accidental injuries which starts at just $7 for a single day of cover.

Meet Jake

Jake’s into rock climbing. He gets Flip because it’s affordable peace of mind.

"Other insurance is more expensive and it’s pretty daunting when it comes to bills. Flip on the other hand, I don’t even notice the payments. It’s not an issue."

Flip supported Jake's recovery from a finger injury.

READ JAKE’S STORY

Ready to do some homework?

The best way to avoid underinsurance is to arm yourself with knowledge. By having a handle on what cover might suit, what it would cost and how much financial strife you might end up in without it, you’ll be well on your way to setting yourself up for a comfortable financial future.