Australians could save money by shopping around for health insurance
Most Australians don’t shop around for a better private health insurance deal despite being able to save hundreds of dollars by doing so, a new survey has found.
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Most Australians don’t shop around for a better private health insurance deal despite being able to save hundreds of dollars if they do, a new survey has found.
It comes as millions of people with private health insurance are set to be slugged with another fee hike within days.
More than 5 million Australians who had so far escaped an annual premium increase this year will see fees go up as some of the nation’s largest insurers bring in hikes initially delayed until October 1.
These include customers at Bupa, nib, GMHBA/Frank and Defence Health — which collectively hold nearly 40 per cent of private health insurance market share according to the Commonwealth Ombudsman’s latest report.
This year’s average premium increase across all funds is 2.90 per cent — about $134 extra a year for families and $60 for singles.
A survey of a thousand Australians, commissioned by comparison website iSelect, found 70 per cent have not switched their health insurance policy or provider in the last two years or ever.
But more than eight out of 10 people who do shop around save money or found better value.
“Of those policyholders surveyed who said they saved money by switching, we calculated the average amount they saved is $448.80, which they’re keeping in their back pocket as a result,” iSelect spokeswoman Sophie Ryan said.
“On top of annual premium increases, if Aussies don’t take the time to regularly review their cover, their plan may no longer be suited to their health or financial circumstances which change throughout our lives.
“They could be wasting time paying for expensive or outdated cover, and no one wants to be doing that at any time, let alone during the current cost-of-living crisis. If it’s been a few years since they last reviewed their cover, now is the time to see if they can find a better deal.”
Brisbane massage therapist Stuart Mauchline, a self-described ‘serial switcher’, shops around for cheaper premiums whenever he receives an insurance renewal notice.
As household budgets face increasing pressure he said it is imperative consumers ensure they are getting the cheapest possible coverage.
“I mean, every dollar in my pocket is better than in someone else’s pocket,” he said.
“I’ve saved like $30 this year on health insurance, but previously it’s been around $90 to $100.”
Mr Mauchline said that using a comparison and referral service makes it possible for him to continuously review his and his partners’ cover.
“If you rang individual companies, it’s gonna take you a hell of a lot longer.”
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