Quit smoking? You need to review your policy.
We are not here to lecture one’s choice to smoke or vape – what many don’t realise is that these habits can also affect the cost of their insurance.Whether it’s Life Insurance, Trauma Cover, Income/Mortgage Protection or Private Medical Insurance, smoking and vaping can result in significantly higher premiums compared to someone who doesn’t use nicotine products.
Have you successfully quit smoking or vaping but continue paying smoker premiums simply because you haven’t reviewed your policy?
Why do insurers charge more for smokers and vapers?
Insurance is based on risk. When insurers assess an application, they consider a range of factors including age, occupation, medical history, lifestyle and personal habits. Smoking and nicotine use are generally considered higher-risk factors because they are associated with increased rates of certain health conditions and claims over time. As a result, insurers often apply higher premiums to reflect that increased risk.
Does vaping count as smoking?
This may surprise you – Insurance providers ask whether you use nicotine products. Depending on the insurer and policy, this may include:
- Cigarettes
- Vapes or e-cigarettes containing nicotine
- Cigars
- Pipe Tobacco
- Nicotine replacement products
Definitions vary between insurers, which is why it’s important to understand how your particular provider classifies nicotine use.
How much more could you be paying?
The difference in premiums varies depending age, health history, the type of insurance, amount of cover and the insurer’s underwriting criteria. However, it is common for smokers and nicotine users to pay noticeably more than non-smokers for the same level of protection. For some people, the difference can be substantial over the lifetime of a policy.
The good news: smoking status can often be reviewed
Many people assume their insurer will automatically reduce their premiums once they stop smoking or vaping. Unfortunately, that’s not usually how it works. In most cases, your insurer won’t know your circumstances have changed unless you tell them. This means someone who quit smoking years ago may still be paying smoker premiums today.
While requirements vary between insurers, most will require you to have remained nicotine-free for a qualifying period before considering a change to your smoking status. A common timeframe is around 12 months, although this differs between providers and policy types.
Recently quit?
If you’ve recently stopped smoking or vaping, it can be helpful to make a note of your quit date and discuss it with us. Even if you haven’t yet reached the qualifying period required by your insurer, it may be worth planning a future review. Plus let your GP know as soon as you quit so it’s on your medical record too.