Australians are prioritising spending on insurance above eating out and going to the cinema as living costs escalate, a NAB consumer sentiment survey of around 2000 people found.  

The poll found that during April-June, only 21% of insureds surveyed had cut spending on home, car and private health insurance.  That compares with 55% spending less on eating out at restaurants, 50% on buying of coffee and snacks, and 49% on entertainment such as the cinema and theatre. 

“Australians are becoming more considered consumers,” NAB Head of Everyday Banking Claire Righetti said. “It means they can still spend on those things that really matter.” 

Aside from insurance, those surveyed were least willing to cut back on house cleaning (21%), spending on pets (18%), children’s sport, dance and hobbies (12%) and private school fees (10%). 

Meanwhile, Australians were willing to make other "trade-offs to protect things they really value,” NAB said – with 45% reducing their car journeys to save on petrol, 43% spending less on travel, 39% spent less on food delivery services such as Uber Eats, 37% reduced charitable giving, 36% delayed major purchases such as TVs, and 30% cut back on subscription streaming services. 

Those changes were saving Australians an average of $286 a month, NAB said. 

The price of financial services rose 2.5% in the June quarter, pushed up by higher premiums for house, home contents and motor vehicle insurance, an Australian Bureau of Statistics (ABS) spokesperson told insuranceNEWS.com.au. 

For all services, annual inflation rose to 6.3% in the quarter, the highest since 2001, driven by rises in the cost of insurance, rent and other essentials. 

“Price increases for a range of services like … insurance are keeping inflation high,” ABS head of prices statistics Michelle Marquardt said. Higher child-care charges also contributed. 

For all goods, annual inflation fell to 5.8% as price rises for food, furniture, appliances and clothes slowed, and fuel prices were 3.6% lower compared to 12 months ago. 

The ABS figures support the NAB survey findings that insureds are choosing to spend less on eating out and shopping and prioritising essential services such as insurance.