4.2 million Aussies are making a big health insurance mistake
41% are missing a clear opportunity to save, Finder research shows.
Research by Finder has revealed that as many as 4.2million health insurance customers are missing out on potential savings by not comparing policies or shopping around.
A recent survey of Australian health insurance customers has revealed that 41% of respondents say that they haven't done anything to save money on their policy.
As health insurance premiums are set to rise again on 1 April, it's estimated that prices will increase by an average of 2.74% with some providers due to jump by as much 5.47%. As a result some people will be paying more than an extra $112 per year, and in many cases don't need to if they compare policies and shop around for a better deal.
Taylor Blackburn, insurance expert at Finder, urged Aussies to compare policies before the 1 April deadline creeps up.
"Now is the perfect time to reassess your health cover and lock in the best possible price before the April increase," he said. "Not all health funds are equal, particularly when it comes to price increases, so see what's out there and leave the loyalty behind."
The research also revealed that more than half (59%) of health insurance customers have taken steps to save money on their policy. Some popular ways to save are:
- Paying upfront for the year ahead at the old rate
- Regularly reviewing and adjusting your cover
- Regularly switching health insurers
Blackburn said there are a number of simple ways for Australians to save on private health insurance including negotiating a better deal with current providers or moving to another provider entirely. "There are more than 30 insurers in Australia offering thousands of policy options, so find the best one for your personal situation," he said.
"Reviewing your level of cover, splitting your hospital and extras and looking at what other funds have to offer can all offer you potential savings on your premiums."
Quick tips to get the best health insurance and save:
- Split hospital and extras cover. Bundling cover with one provider can be convenient, but isn't always the best approach. Looking at hospital and extras cover separately, and with separate providers, can give you more choice and more opportunities to save.
- Increase excess. The excess is the amount you pay when you make a claim. Increasing the excess can lower the cost of monthly premiums, which can save money over the course of the year.
- Ditch the couples policy. Some couples policies may cost more than two singles policies, particularly if one person has more complex medical needs than the other.
- Compare plans. Comparing policies and funds and switching if there is a better deal with another provider. Switching similar levels of cover from provider to provider means there won't be waiting periods to serve.
- Using the Finder app. The app can also assess your current policy and suggest where policyholders can switch and save money.
Looking for the best health insurance? Compare policies for hospital cover and extras now.
