The cost of staying put: 1 in 4 Aussies are overpaying for health insurance
Millions of Australians are overpaying for health insurance with inertia quietly costing households hundreds of dollars a year, according to new research by Finder.
A Finder survey of 884 respondents with insurance revealed 1 in 4 (23%) policyholders say they haven't compared their health cover in more than 12 months.
The government has approved private health insurers to raise their premiums by an average of 4.41% from 1 April, 2026 – the steepest hike since 2017.
Of those who have private health insurance, 27% ranked it as one of their top 3 most stressful bills, according to Finder's Consumer Sentiment Tracker.
Taylor Blackburn, personal finance and insurance specialist at Finder, said millions of Aussies are overpaying for health insurance.
"Australians are sitting on outdated and uncompetitive policies. The best offers – up to $700 in cashback, airline points, free weeks of coverage – go to new customers.
"Sticking with the same policy might feel easier, but that loyalty often comes with a higher bill."
According to APRA figures, as of December 2025, 45.6% of Australians (12.6 million people) have private hospital cover and 55.3% of Australians (15.3 million people) have private extras cover.
Blackburn said failing to review cover doesn't just lead to overpaying – it can also mean being stuck with benefits that no longer suit your needs.
"Your circumstances change – your income changes, your health changes, your family changes.
"If your policy hasn't changed with you, there's a real chance you're paying for inclusions you don't use or missing out on ones you need."
Blackburn urged Australians to treat their health insurance like any other major household expense.
"A quick comparison once a year could save hundreds of dollars. In this environment, that's money most households simply can't afford to leave on the table."
Methodology
- Finder's Consumer Sentiment Tracker is a monthly recurring nationally representative survey of more than 60,000 respondents.
- Figures in this release are based on 884 respondents with insurance, from January 2026.
- The Consumer Sentiment Tracker is owned by Finder and operated by Qualtrics.
- The survey has been running monthly since May 2019.
Sources
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