The Biggest Insurance Mistake Kiwis Make (And Why It’s Costing You Money)
Insurance is one of those things we all know we should have, but very few of us truly understand how it works when we need it. And because of that uncertainty, countless New Zealanders end up leaving money on the table, not because they weren’t eligible, but simply because they were too unsure (or too nervous) to ask.
If you’ve ever hesitated to check whether something was covered, you’re not alone. But as David often says, the biggest mistake people make with insurance isn’t overpaying. It’s not claiming at all.
The Costly Mistake Most Kiwis Don’t Know They’re Making
Every year, thousands of Kiwis quietly pay their insurance premiums, crossing their fingers that if something ever goes wrong, they’ll be supported. But ironically, many people never make a claim even when they could and should. Why? Because they’re scared to ask.
There’s a fear that asking about a potential claim will come back to bite them. That their premiums will increase, that their policy might be changed, or that they’ll be penalised for even enquiring. But here’s the truth most people don’t realise:
• Once your policy is in force, it can’t be changed just because you asked a question
• You can’t be charged extra for checking whether something is covered
• Every claim is assessed individually, so a “no” for one situation does not mean a “no” for everything
You pay for insurance to use it, not to sit quietly hoping you’re allowed to.
Jill’s Story: A $5,000 Surprise Waiting to Be Claimed:
When Jill sat down with David to review her cover, she mentioned she’d once tried to claim income protection while ACC was already supporting her. She was told at the time that because ACC had stepped in, her insurance provider didn’t need to. So she never questioned it again.
She assumed the door was closed but during the review, David noticed something the original adviser hadn’t spotted: Jill had premium cover built into her policy. That meant her insurer should have been covering her policy premiums while she was off work, even if ACC was paying her income. A small detail, easily overlooked but hugely valuable.
The result? A $5,000 payout Jill didn’t even know she was entitled to. All because someone finally asked the right question.
The Real Lesson: Always Ask:
Before you assume your situation isn’t covered, ask. Before you decide your claim is too small, ask. Before you think “I’m probably not eligible anyway”, ask. Ask your insurance company. Or, like Jill, ask David. You may be surprised by what you’re actually entitled to. Because in the world of insurance, the biggest mistake isn’t claiming. It’s not claiming at all.
