How to get a cheaper price for health insurance, electricity and broadband

Health insurance, electricity and broadband are among our biggest monthly bills and while many of us plan to do something about the cost, few of us do.

Research shows Australians spend up to $11.6 billion a year more than they need to on essential household bills.

From groceries to home loans, we all know that one of the best ways to save money is by shopping around.

But, when it comes to things like our power, internet and insurance, we don’t shop around – despite these being the areas we could save the most if we did.

Research shows Australians spend up to $11.6 billion a year more than they need to on essential household bills.

The Queensland University of Technology (QUT) and Heritage Bank has found that by not regularly shopping around, negotiating, and upgrading to the best new deal, Australians are paying a hidden financial penalty dubbed the ‘lazy tax’.

It also found that although 50 per cent of us seriously considered switching services such as insurance (car, home and health) and energy, only 25 per cent actually followed through with the move.

Meanwhile, Australians who researched different offers and more competitive rates and then switched providers, have collectively saved more than $2.5 billion per year in the past five years.

How to shop around for a better deal on energy

A growing number of Australians are experiencing bill shock – receiving a bill over and above what they expected to pay – and are spending as much as 40 per cent of their monthly income on household expenses.

Consumer advocate and co-Founder of app GetReminded, Tim Nicholas, warns the biggest shock often occurs when people receive their electricity bill with many paying at least $200 above what they expected.

“All Australians can save on their electricity costs, but many don’t, simply because they don’t know where to start or how to shop around,” says Mr Nicholas.

“From July the Australian Energy Regulator dropped the Default Market Offer (DMO), which is a cap on what price retailers can charge customers so there is no better time than to shop around for a better deal,” he explains.

“For New South Wales households it will fall by $102 a year, $116 in South Australia and $53 in southeast Queensland. Victoria is not covered by the determination and sets its own Default Market Offer.”

Mr Nicholas has these tips to ensure you get a better deal when shopping around for cheaper energy.

1. Know how much energy your household uses, as an average kWh per day – for example, the average four person household uses 18.7kWH per day according to energymadeeasy.gov.au.

2. Realise that asking for a lower price is not something to be embarrassed about – be confident as you are the customer and very important to the energy provider.

3. Use energy comparison offerings yearly

4. Start by asking your existing energy provider for their best rate – often they will agree to a lower price just because you have asked.

How to shop around for a better deal on private health insurance

The number of consumers purchasing private health insurance policies soared last year when the first wave of lockdowns closed public hospitals to all but the most urgent elective surgery cases.

An extra 170,219 people took out hospital cover in the year after the pandemic hit, with 97,291 extra people aged over 50 taking out cover over the year.

The main driver was a blowout in waiting times for non-urgent elective surgeries, which may not be emergencies but still cause “pain, dysfunction or disability”.

From 2019 to 2020 there were 70,000 fewer elective surgeries in public hospitals than the year before. Waiting lists in Victoria grew by 28 per cent in a year and more than four times as many patients have waited over a year for their procedure – often in pain and discomfort.

New South Wales had 88,908 people waiting on 31 March 2021 and, according to Private Healthcare Australia, the recent elective surgery freeze will add around 2,500 people to the list each week.

“We know Australians still really value the peace of mind they get from private cover but many families are struggling to afford private health insurance along with other cost of living pressures,” says Jessie Petterd, spokesperson at comparison site iSelect.

“Customers concerned about the affordability of their health insurance should first explore more affordable options rather than simply cancelling their cover altogether.

“Saving money doesn’t have to mean compromising your level of cover, with many customers able to ease the budget strain by switching to a similar level of cover with a different fund for a cheaper price.”

A recent survey of health insurance policy holders by iSelect found that almost half (47 per cent) of health insurance customers were saving $300 or more a year off their premiums.

And, according to privatehealth.gov.au there can be huge differences in price between policies, depending on the provider.

Its figures show that in New South Wales, there can be as much as $1800 per year difference between some gold family policies, and up to $840 difference between some gold singles policies, while there can be more than $500 difference between some family silver policies and an almost $250 difference in some silver singles policies.

Ms Petterd has these tips to ensure you get a better deal when shopping around for private health insurance.

1. Don’t pay for things you don’t need – Not regularly reviewing your policy means you could be paying for things you don’t need or not be covered for what you actually need. Review your policy whenever your life stage, health needs or financial circumstances change.

2. Consider opting for higher maximum excess to reduce premiums – If you think you’re unlikely to be admitted into hospital in the near future, you could opt for a higher excess ($750 for singles and $1500 for families) on eligible policies in exchange for lower overall premiums.

3. Look for discounts & freebies – many funds offer discounts for paying via direct debit while others offer free dental check-ups or waive excesses for kids going into hospital.

4. Review your extras – if you don’t think you’ll use them, why pay for them? Also consider flexible extras products that combine your separate extras limits into a single annual limit for you to use across different services.

5. Waiting periods are protected – any hospital benefit waiting periods you’ve already served will be protected by law if you switch to an equivalent or lower level of hospital cover.

Australians are spending as much as 40 per cent of their monthly income on household expenses.

How to shop around for a better deal on home internet

As ongoing restrictions and lockdowns continue across the country, we’re more reliant on our home internet than ever before.

Life in Australia now centres on our broadband connection, which has become a digital lifeline to access education, work, and to socialise with friends and family.

“Between March 2020 and the end of June this year, more than 1.5 million Australians connected to services over the NBN network and 2.5 million customers upgraded their plan with their retail provider,” explains NBN spokesperson Jane McNamara.

“Following the introduction of lockdowns in New South Wales and Victoria, national data demand across the NBN network peaked on the evening of Saturday 17 July at 20.39 terabits per second or the equivalent of downloading more than 500 high-definition movies in a single second.”

Ms McNamara has these tips to ensure you get a better deal when shopping around for home internet.

1. Check your speed suits your needs – during lockdown demand in your household has likely increased. Call your internet retailer and talk to them about your family needs, the number of devices you have connected and how you are using the internet to find out if you have the right retail plan to support your needs.

2. Working from home? Get the right plan – most home internet plans are used primarily to download (web browsing, movies, music) and, as such, have good download speeds but are not as strong when it comes to uploading. When you’re working from home you may have a greater need for uploading files and joining video calls, so speak with your internet retailer to make sure your plan has the upload speeds you need to work from home.

3. Check your in-home set-up – check your Wi-Fi router is in a central location in the home, ideally close to the devices you need to connect. Some routers may not deliver high performance and speeds, seek advice from your internet retailer on possible upgrade options.