Insurance regret: 1 in 5 Aussies burnt by lack of health cover
Key takeaways
- Finder consumer research shows 19% of Australians wish they had taken out private health insurance earlier.
- The average insurance premium in Australia is $238 per month.
- Health insurance premiums are rising by an average 4.41% in April.
Millions of Aussies lament waiting to take out health cover, according to new research by Finder.
A Finder survey of 1,011 respondents revealed almost 1 in 5 (19%) Australians – equivalent to 4.1 million people – wish they had taken out private health insurance sooner.
The research found 1 in 8 (12%) admit they regret not taking out private health insurance prior to a minor health matter such as dental visit, while 7% say they wish they had taken out cover before they were struck down by a major health issue.
Taylor Blackburn, personal finance and insurance specialist at Finder, said underinsurance was a growing issue in Australia leaving many financially vulnerable.
"Millions of Aussies have found themselves in the lurch after an out of the blue diagnosis.
"The absence of cover can turn a health scare into a full-blown financial crisis.
"People delay taking out private health insurance to save on premiums, only to be hit with huge bills when they need an unexpected procedure.
"That short-term saving becomes an expensive mistake for some households."
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Health Minister Mark Butler has approved an average increase of 4.41% to private health insurance premiums, the steepest hike in a decade.
Some gold policies will increase by as much as 25%.
According to Finder research, Australians with private health insurance currently pay $238 per month for their coverage.
Based on this average, an increase of 4.41% would see Aussies having to fork out $126 more per year.
Finder's data shows 2 in 5 (39%) Aussies have always had private health cover and are happy with that choice, while 27% of Australians have never had health insurance.
Gen Z are most likely to regret not having cover when faced with a major health event (16%) compared to just 1% of Baby Boomers.
7% of millennials say they wish they had taken out a policy sooner as they weren't covered for a major health issue, compared to 3% of gen X.
Blackburn said there's a dangerous belief that youth equals immunity.
"Serious illness and accidents can happen at any age."
Blackburn said underinsurance is a silent risk building in Australian households.
"Without adequate cover, families are forced to dip into savings, rack up debt or delay treatment altogether."
Do you wish you had taken out private health insurance sooner?
| Yes, I wasn't covered for a minor health issue (e.g. dental) | 12% |
| Yes, I wasn't covered for a major health issue | 7% |
| No, I've always had private health cover | 39% |
| No, I've never had private health cover | 27% |
| No, I've always had it but I wish I didn't have it | 15% |
| Source: Finder survey of 1,011 respondents, February 2026 |  |
Credits
- Insights research team: Graham Cooke, William Capada, Karen Manalaysay
- PR operations team: Kate Boddington, Taylor Blackburn, Jamie Hersch
- Survey operation: Qualtrics
Sources
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