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
This can help you pay for medical treatment if you need to be admitted to hospital. It can help cover the cost of your admission or accommodation and the fees charged by doctors, surgeons and anaesthetists. It can also cover other costs associated with a stay in a private hospital.
This helps cover the costs of health care treatments outside a hospital setting which aren’t covered by Medicare. This can include major and minor dental treatment, orthodontics, hearing aids, physiotherapy, glasses, contact lenses and podiatry (in most cases with annual limits).
This is a standard health insurance policy designed for a single person, rather than being tailored to cater to the needs of a couple or family. It may include hospital cover plus extras, or either of these types of insurance on their own, depending on what you're after for your health cover.
A family health insurance policy is designed for a family unit including dependent children who may reach up to 31 years of age with some insurers. It offers private health insurance suitable for the whole family and may include shared limits for all members included in your policy.
A health insurance policy aimed at seniors is designed to appeal to people who are in the second half of their life. These are often specific Silver Plus policies that offer the same cover as other health insurance policies, with the exception that pregnancy and childbirth cover may not be included.
Visitors who are in Australia on a temporary basis for travel, work or study may be able to take out Overseas Visitors Health Cover (OVHC). Many visas issued in Australia come with a requirement to take out this type of insurance, which covers visitors who may not be covered by Medicare.
Ambulance cover is generally available either packaged into your private health insurance or on its own as a separate policy or subscription. By having this protection, you could be covered for all eligible ambulance travel in Australia (subject to your insurer's terms and conditions).
The cheapest and most barebones form of private hospital insurance, this can include cover for rehab, in-hospital psychiatric services and palliative care. Having this policy will enable you to avoid paying the Medicare Levy Surcharge (MLS) and Lifetime Health Cover (LHC) loading.
Bronze hospital cover is a step up from basic insurance, including 18 further clinical categories such as ear, nose and throat, bone, joint and muscle, digestive system, joint reconstructions, gynaecology and chemotherapy, radiotherapy and immunotherapy for cancer.
Silver hospital cover is the second-most expensive type of policy and offers the second-most clinical categories. On top of what's offered by basic and bronze cover, it also includes heart and vascular system, lung and chest, blood, hearing device implantation and dental surgery.
The highest level of private hospital insurance available in Australia, gold policies can offer cover for pregnancy and birth, weight loss surgery, assisted reproductive services and insulin pumps on top of all the categories provided by silver, bronze and basic hospital insurance.
Why compare health insurance through Savvy?
How to compare cheap health insurance
Consider the cost of the policy
Of course, when looking for cheap health insurance, it's crucial to consider how much your policy may cost you overall. By comparing policies side-by-side, you can see which offers provide more value for money in terms of the cover offered in contrast to their premiums. However, while cost is important, it's important to avoid sacrificing necessary coverage wherever possible.
Frequently asked questions about cheap health insurance
Helpful health insurance guides
Looking for health insurance to cover your condition or treatment?
Read one of our helpful guides on a range of different ailments and potential hospital or extras treatments to help you find out if they're covered.
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.