1 in 5 Australians raise health excess to pocket savings on premiums

Gen Z respondents were the most likely to raise their excess at 30%.

Around 17% of Australians with private health insurance, or 2.4 million people, have increased their excess in the past year to reduce premiums, according to a survey by Money.com.au.

The study found that 72% of policyholders kept their excess unchanged, whilst 10% were unaware they could adjust it.

Gen Z respondents were the most likely to raise their excess at 30%, followed by Millennials at 21%, Gen X at 14%, and Baby Boomers at 9%.

Premium savings vary depending on policy type.

For singles, raising the excess from $162.50 (A$250) to $325 (A$500) lowered the average monthly premium from $227.50 (A$350) to $188.50 (A$290), saving $468 (A$720) annually. Increasing it to $487.50 (A$750) cut premiums to $170.30 (A$262), saving $686.40 (A$1,056) a year.

For families, a $162.50 (A$250) excess averaged $284.70 (A$438) per month, which dropped to $249.60 (A$384) with a $325 (A$500) excess and $241.20 (A$371) with a $487.50 (A$750) excess, equating to yearly savings of $421.20 (A$648) and $522.60 (A$804) respectively.

The survey of 1,000 Australians was conducted by Pureprofile in July 2025.