It’s something most of us don’t think about—health insurance. You sign up, forget about it, and keep paying the premiums, year after year. But what if that loyalty is costing you more than it should? A new survey reveals a huge gap in what Aussies are paying for private health insurance, and it’s all because of one big mistake. So, what is this costly blunder, and how can you avoid falling into the trap?
The Insurance Mistake: Loyalty Can Be Expensive
If you’ve been with the same health insurance provider for years, you might want to take a closer look at your premiums. A recent study from Compare the Market uncovered a startling fact: Aussies who’ve stayed with their provider for over 10 years are paying, on average, $828 more per year than those who have switched to a new plan within the last year. Let that sink in for a second. That’s $828 that could be spent elsewhere—on something you actually need, rather than just sticking with a provider out of habit.
The numbers are striking. Long-term customers pay an average of $306.88 per month, while newer customers are paying around $237.84, reports Yahoo Finance. That’s a difference of almost $70 a month—an extra cost that adds up fast.
Why Does This Happen?
The main reason for this price discrepancy is simple: loyalty doesn’t always get you rewarded. Insurers often hike up premiums for existing customers, knowing they’re less likely to shop around. As prices increase year after year, those who’ve been with the same provider for a decade are left paying more than they should be.
The situation’s about to get worse, too. Premiums are expected to rise by 3.9% to 4.4% in April 2026. That’s another hike on top of what you’re already paying, and if you’re one of the long-term customers, it could mean an even bigger hit to your wallet.
The Solution? Shop Around!
So, what can you do? The answer is simple: shop around! Don’t just accept the status quo. Health insurance isn’t a one-size-fits-all product, and what worked for you five years ago might not be the best option today. Take the time to compare different plans, look for better value, and check if you’re paying for things you don’t need. For example, if you’re well into your 50s or 60s, paying for pregnancy coverage might not make sense anymore.
It’s easy to forget about your health insurance, but by being proactive, you can save hundreds of dollars every year. The key is to regularly review your plan, compare options, and make sure you’re not overpaying for coverage that doesn’t suit your needs.
Bottom Line: Take Control of Your Premiums
Sticking with the same insurer for years may feel like the easier option, but it could be costing you more than you realize. Don’t fall into the trap of paying for outdated coverage. Take a few minutes to shop around and you could save a substantial amount. After all, that extra $828 could go toward something far more exciting than just health premiums.
