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.
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This comes as premiums are set to rise by 3.73% as of April 1 – the biggest increase in 7 years.
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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.
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Almost 1 in 4 (22%) – equivalent to 4.6 million people – don't have private health insurance at all.
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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.
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"Australians are abandoning their health insurance in large numbers as they grapple with the mounting pressures of rising living costs.
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"Instead of cancelling, consider reducing coverage, modifying your extras, or comparing plans for more suitable cover."
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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.
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Based on this average, an increase of 3.73% would see this rise to $160 per month – an extra $72 a year.
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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.
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Bennett said with health insurance premiums rising in April, the best time to re-evaluate your policy is now.
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"Decreasing your level of cover or increasing your excess are just a couple of ways to make cover more affordable.
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"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.
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"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 |  |
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Sources
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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