Many young Australians choose expensive hobbies over insurance – Allianz

Many young Australians have a hobby they are passionate about – and 59% will not give up their hobby even if it becomes expensive, according to Allianz's latest research.

The report found that 2.3 million young Australians dedicate at least one hour daily (38%) to their hobbies, ranging from exercises like hiking, yoga, and the gym (57%) to books (48%), gaming (42%), and makeup (31%).

Despite the daily commitment and including hobbies into the budget (76%), nearly half of Australians were unsure how much money they had spent on their hobbies over the last year (45%) or how much the items making up their hobbies were worth (53%), with nearly one eighth having an estimated value of over $5,000 (11%).

Young Aussies choose expensive hobbies over insurance

Allianz claims and policyholder data revealed that Australians aged under 26 have an average claims cost of $3,700. Just under half of the respondents admitted to not having insurance (44%) or being unaware of what was covered under their policy if they did have one (41%).

“The hobbies that young Australians engage in have a direct link to identity exploration and self-expression, are a great way to learn new skills, and an effective way to manage stress,” said clinical psychologist Jaimie Bloch.

“This connection and relationship extend to the items that are integral to their hobbies and should they become lost, stolen, or damaged, this can cause significant emotional distress. Understanding the collective value of your hobby is a great first step to ensuring they are sufficiently protected, and you have peace of mind.”

Allianz's research further found that over one third of young Australians did not feel confident with their knowledge of financial literacy (36%) and were unwilling to reveal their spending habits (47%) and felt embarrassed by their lack of knowledge (29%) around their finances.

Moreover, young Australians felt unsure of how the rising cost of living would affect them in the future (44%) and became more critical of their spending (40%). Most of the respondents also did not consider implementing a plan to protect their hobby items because they were worried that they do not have sufficient savings (43%).

How to protect expensive hobbies

Allianz advised young Australians to learn more about protecting the items making up their hobbies.

“It's not surprising that the rising cost of living has left young Australians feeling unsure of their prospects and looking for short-term solutions to help them out now,” said Rachael Poole, head of home at Allianz Australia.

“Hobbies are an important part of our lives and are worth protecting for the long run, which is where insurance can come in. However, our research shows that awareness about the role that insurance can play is going unnoticed. At Allianz, we want to encourage young Australians to uncover the value of their possessions and consider whether home insurance is right for them.”

The following are other ways to protect hobbies:

• Store hobby items safely: Be mindful of rain, hail, wind, or direct sunlight. If you have insurance, remember that some items may not be covered if left outdoors or at all, so review your policy to ensure you are adequately covered;
• Undertake general maintenance of hobby items;
• Remember your hobby items by taking pictures or creating an inventory outlining what you own;
• Be aware of how much you have spent for your hobby; and
• Take out insurance for your hobby items.