The health insurance mistake costing Aussies $828 a year

Monday, 16 February 2026 15:55

Australians who have stuck with the same provider are paying an astonishing amount more each month.

Millions of Australians will be paying more for their private health insurance from April 1, but new data has revealed a single factor could mean you're paying $828 more per year than your fellow Aussies.

Australians who have stayed with the same health insurance provider for 10 years or more are paying an average of $306.88 per month on premiums, while those who purchased new cover a year ago averaged $237.84 per month, according to Compare the Market's latest survey.

Over one year, that adds up to a $828.48 cost difference.

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That means loyal long-term customers are paying 29 per cent more for their health insurance than those who have switched providers more recently.

The new findings come just weeks ahead of what is expected to be the largest increase to health insurance premiums in half a decade.

Private health insurance premiums are expected to increase by between 3.9 and 4.4 per cent, as the gap between premiums and health inflation closes post-pandemic.

That kind of premium rise would see singles on a combined hospital and extras policy pay an extra $127 to $144 a year, while families would face another $191 to $216 annually.

"Australians who stick with the same insurer may think they're being rewarded, but when premiums increase year-on-year, that's often not the case," Compare the Market's Economic Director David Koch said.

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Pregnancy is one of the three Ps (puberty, pregnancy and perimenopause), a time when a person's brain undergoes physical changes due to hormones.

"Your insurer isn't going to tell you if you're shelling out more than you need to. It's up to you to take control and look for better value."

"The number of people I speak to who have cover for pregnancy when they're well into their 50s and 60s is outrageous - I was one of them until my wife pointed it out."

Australians spend an average of $255.67 per month on their health insurance, which adds up to $3068 each year.

The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.

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