More than two-thirds of parents worry about higher insurance premiums caused by increasingly intense and frequent “unnatural disasters”, and many families have gone without cover while tightening budgets in the past year, a study has found.

The Under Pressure report, produced by Parents for Climate and the Climate Council, says Australia has entered the era of climate change consequences, and families face rising costs made worse by oil and gas prices and weather events.

“It’s heartbreaking to hear from so many parents through this research who have to cut back spending on essentials like food, heating, cooling and insurance just to make ends meet,” Parents for Climate CEO Nic Seton said.

The report features data from a YouGov poll of parents with children aged under 25 and living at home. They were asked about financial stress over the past 12 months and their views on climate change impacts. Findings also draw on a Parents for Climate survey.  

When asked about changes to the family budget over the past year, 19% of respondents said they had gone without insurance.

Two-thirds had reduced heating or cooling, 55% cut back on holidays; 53% reduced food purchases or bought cheaper options; 37% drove less to curb petrol use; 32% cut back on sports, recreation or activities for children; 27% had skipped paying or not paid a bill on time; 21% had taken out a loan or used a credit card more often; and 14% moved in with family or found a cheaper home.

Renters were three times more likely to move to a cheaper place and significantly more likely to have missed bill due dates or gone without insurance.

“Oil and gas are fuelling two crises at the same time: climate change and cost of living,” independent economist and climate councillor Nicki Hutley said.

“Insurance bills are through the roof because climate pollution is driving more unnatural disasters globally and hiking insurance premiums as a result.”

Australians are spending $30 billion more on cover than a decade ago, and many households at higher risk of extreme weather are being priced out of insurance, the report says.

The paper cites Actuaries Institute and Finity research that estimates rising premiums have pushed the number of households in home insurance affordability stress up 30% to 1.6 million in the past year.

The report is available here.