Cheap Health Insurance

Looking for cheap private health insurance? Compare a variety of options through Savvy today.

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, updated on July 6th, 2023       

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Health Insurance Banner

We’ve partnered with Compare Club to bring you a range of health insurance policies to help you compare them side by side.

Health insurance is integral to protecting your health and finances, but it’s also important to consider the cost of policies when comparing your options. With so many different types of private health insurance policies available on the market, it can be difficult to choose which one may offer the cheapest option suitable for your needs.  

Savvy can help you compare a range of different health insurance quotes in one place. Just answer a few simple questions and within minutes you could have multiple offers to consider side-by-side from a panel of trusted insurers. Get started with a free, no-obligation quote through Savvy today.

How do I get the cheapest private health insurance?

Each customer is going to have a different budget and health needs to work with which will allow them to take out a certain type and level of policy. However, there are several steps which can potentially be taken to reduce the cost of your policy, including the following:

  • Compare your options – while this in itself won’t reduce the cost of your insurance, comparing a wider range of quotes before buying your policy will help give you a greater understanding of what the most affordable costs suitable for your coverage needs may be on the market.
  • Double-check your coverage – you may find you’re paying for inclusions you never use and may be able to downgrade your cover to make it more affordable.
  • Pay your insurance premiums annually – if you choose to pay off your insurance annually, you may be able to pay less overall (although not all providers permit pre-payment).
  • Set a higher excess and co-payment – if you opt for a higher excess and co-payment, your health insurance premiums may be reduced compared to those who opt for lower sums in these areas.
  • Consider your insurance needs – if you’re buying insurance for your family, it may be worth looking into a family policy, as these can be cheaper than buying individual cover for each member.
  • Pay off your health insurance before your insurer puts up their prices – health insurance premiums rise from April 1 each year, although many insurers are increasingly opting to put up their premiums later in the year. If you pay before certain dates in the year, you may be able to lock in last year’s rates.
  • Buy when you’re younger – some insurers can offer discounts on their health insurance worth up to 10% of your premium if you purchase your policy between the ages of 18 and 29. Depending on how great your premium is, you could save a significant amount on your premiums over the next ten to 20 years.

What other factors impact how cheap a health insurance policy is?

When it comes to choosing the cheapest type of private health insurance, your choice will largely depend on your situation. The cheapest health insurance policy will be determined by the following:

Type of insurance policy

An extras-only insurance policy will tend to be the cheapest health insurance on offer. A hospital cover policy will usually cost more than an extras policy but can cover you for some of the costs of hospital treatment. Combined hospital and extras cover will offer you the most extensive coverage, but it is generally the most expensive.

Insurer you buy from

Additionally, the provider you choose to purchase your policy with will also impact the cost of your insurance. Different insurers may offer vastly different prices for their coverage, which is why it's so essential to compare your policy options closely before signing on the dotted line.

Level of policy coverage (for hospital cover)

  • Basic – this is the cheapest policy offered under hospital cover. It provides some very limited cover for healthcare treatment as a private patient in a public or private hospital.
  • Bronze – bronze hospital cover consists of the same inclusions as a basic hospital cover policy but can add up to as many as 18 further clinical categories.
  • Silver – silver hospital cover adds further clinical categories to your overall coverage, with insurers offering up to 29 additional areas. 
  • Gold –this option is the most expensive but offers the most comprehensive cover. It can come with top cover for all clinical categories.

Your personal circumstances

Your own life situation will also determine whether you’re taking out a single, couples, family or seniors health insurance policy. While health insurance for singles may sometimes be the cheapest option available, if you’re a couple earning less than a combined $180,000 per year, a private health insurance rebate may result in couples' health insurance being the cheapest option.

Types of health insurance

Why compare health insurance through Savvy?

How to compare cheap health insurance

Frequently asked questions about cheap health insurance

What are restricted health funds and do they offer cheap health cover?

Restricted health funds are organisations which offer insurance for specific groups, such as workers and industries. These health funds are often not-for-profit and are designed to serve the needs of specific employees. In some cases, they may be able to offer cheap health cover if you’re eligible to take out insurance with them, but it’s important to compare your options before you buy your policy.

Will a health insurance policy come with cheap dental cover?

Insurers can offer dental cover under a wide range of extras cover policies. There may be extras cover policies with cheap premiums which offer limited cover for dental, while more expensive policies may offer more extensive cover for even the most major dental surgeries.

Can I get cheap optical cover under my health insurance policy?

If you’re looking to get optical cover for frames or lenses, you’ll need to take out extras cover. It’s possible to get a cheap extras cover policy which can cover you for prescription glasses, but you may struggle to find a policy that covers non-prescription optical needs.

If I choose a cheap health insurance policy, can I still avoid paying the Medicare Levy Surcharge?

Yes – the Medicare Levy Surcharge of 1% to 1.5% only applies to individuals earning over $90,000 annually and couples earning over $180,000 annually who don’t take out private hospital cover. As such, you won’t be charged this amount if you purchased a health insurance policy, regardless of how expensive it is.

Are there longer waiting periods to start claiming for cheap health insurance?

The waiting periods for cheaper health insurance depend on the type of cover taken out and your health insurer. For example, if you choose to take out extras cover to get regular dental check-ups, your wait period may only be two months. However, if you take out extras cover to make a claim on a major dental treatment such as crowns or braces, you may need to serve a 12-month waiting period. To find out about a policy’s waiting periods, it’s important to read the Private Health Information Statement provided with your policy quote very carefully.

Will cheap health insurance restrict what I can claim on my benefits?

The cheaper your health insurance policy, the lower the limits are likely to be on what you can usually claim. Cheap health insurance policies can have lower benefit limits, which means once you’ve claimed up to a certain amount, you may have to pay any additional charges yourself (should they apply).

If I’m expecting to start a family in the near future, should I choose a cheap health insurance policy?

You may not enjoy the highest level of cover (or have no cover at all) for pregnancy if you opt for a cheap insurance policy. To get cover for your pregnancy and any related services and treatments, you will probably need to take out either a silver plus or gold hospital cover policy, which are usually more expensive. Make sure you take out this cover 12 months before the expected date of birth as waiting periods may apply.

Can where I live impact the cost of my health insurance?

The price of healthcare treatments and services differs between Australian states and cities. Therefore, your policy’s price may also be impacted by these differing costs. Health insurance premiums for residents living in large city locations, particularly Sydney and Melbourne, can be more expensive.

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Disclaimer:

Savvy is partnered with Compare Club Australia Pty Ltd (AFS representative number 001279036) of Alternative Media Pty Ltd (AFS License number 486326) to provide readers with a variety of health insurance policies to compare. Savvy earns a commission from Compare Club each time a customer buys a health insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via Compare Club.

Savvy’s comparison service is provided by Compare Club. Compare Club compares selected products from a panel of trusted insurers and does not compare all products in the market.

Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.

For any further information on the variety of insurers compared by Compare Club or how their business works, you can read their Financial Services Guide.