Health cover exodus: 3.3 million Aussies plan to ditch insurance this year
Millions of Australians won't be renewing their private health insurance this year, according to new research by Finder.
A Finder survey of 1,012 respondents revealed a significant 16% – equivalent to 3.3 million Australians – plan to cancel their health insurance policy in 2025.
This comes as premiums are set to rise by 3.73% as of April 1 – the biggest increase in 7 years.
The research found 2 in 5 (41%) plan to stick with the same health insurer, while 16% will switch if they can find a better deal.
Almost 1 in 4 (22%) – equivalent to 4.6 million people – don't have private health insurance at all.
Tim Bennett, health insurance expert at Finder, said there is a growing trend of Australians ditching their insurance policies, as rising premiums and the cost of living take its toll.
"Australians are abandoning their health insurance in large numbers as they grapple with the mounting pressures of rising living costs.
"Instead of cancelling, consider reducing coverage, modifying your extras, or comparing plans for more suitable cover."
The average cost of silver (mid range) private health insurance for hospital cover is around $154 per month for a single person – $1,848 per year.
Based on this average, an increase of 3.73% would see this rise to $160 per month – an extra $72 a year.
The research shows it's young Australians who are most likely to abandon their health cover, with 1 in 4 (25%) gen Z and 1 in 5 (20%) gen Y planning to dump their private health insurance by the end of the year.
Bennett said with health insurance premiums rising in April, the best time to re-evaluate your policy is now.
"Decreasing your level of cover or increasing your excess are just a couple of ways to make cover more affordable.
"If you can afford to do so, paying your premium for the upcoming 12 months is a great way to avoid the increase and get some money back in your pocket.
"Dropping private health insurance may save money in the short term, but it risks significant out-of-pocket costs, longer waiting times, and limited access to essential services."
Will you renew your private health insurance in 2025?
| Yes, but I will switch if there's a better deal | 16% |
| Yes, with the same insurer | 41% |
| No | 16% |
| I don't have health insurance but plan to take it out in 2025 | 5% |
| I don't have private health insurance | 22% |
| Source: Finder survey of 1,012 respondents, January 2025 |  |
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 1,012 respondents from January 2025.
- The Consumer Sentiment Tracker is owned by Finder and operated by Qualtrics.
- The survey has been running monthly since May 2019.
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