Can I switch health insurers?  

You might change your wardrobe every season, and might also switch jobs on a regular basis. But when it comes to health insurance, most Aussies are a little resistant to change. In a 2021 University of Melbourne study of health insurance habits, researchers noted that once people choose a health insurance policy, they tend to stick with it “even though their situations change and their original plans become dominated by new plans”.  

Health insurance isn’t a footy team – there’s no need to stay loyal. In fact, it may even count against you if you do. Health insurers usually offer good deals to entice new customers, rather than rewarding existing ones for their loyalty. With that said, some insurers do have loyalty bonuses for long-term members that you could lose if you switch insurers, so if you’re planning to switch try asking the new insurer whether they’ll honour this bonus. 

So yes, you can switch health insurers, and it’s a very good idea to do this if your policy and insurer do not meet your needs and budget. Not only could it save you money, it’ll help you ensure you’re covered for the health treatments and services you need. And if you change jobs and become eligible for a restricted health fund, such as Teachers Health or Police Health, you’ve got even more options.  

Since your health needs, family situation and income all change over time, the policy you have now might not be right for you in a year or two, so make sure you review your health insurance regularly.  

There is no penalty for changing health insurers, although you may have to serve a new waiting period if you are changing to a higher tier of Hospital Cover or choosing a policy with a higher excess. With Extras Cover you may have to serve waiting periods regardless of your existing cover, but you could try asking your new insurer if they’ll waive or reduce them. 

How do I change health insurers? 

If the reason you haven’t changed your health insurance policy yet is because it seems too hard, we’re here to help. We’ve broken down the process of changing health insurers into simple steps to follow.  

Firstly, use the healthslips.com.au calculator to find the best policy for you. At healthslips.com.au, we’ve made it easier than ever to find a better health insurance policy – and we’ve maximised your odds of getting the best price. Then, ask the new insurer for a detailed quote, and check it thoroughly. Cancel your old policy and begin the new policy, making sure there is no gap in your cover, and that a Transfer Certificate (sometimes called a Clearance Certificate) is sent to your new insurer. 

Learn more about switching health insurers.

A step-by-step guide to changing your health insurance policy.

Try our comparison calculator.

Trudie McConnochie

Writer and Researcher

Knowledge is power – that’s the guiding principle behind everything Trudie writes, and it’s a philosophy she brings to her work at healthslips.com.au. By breaking down complex information into easy-to-understand blogs and stories, she aims to empower Australians to make the best choices and an informed decision around private health insurance.

Trudie understands firsthand some of the complexity of private health insurance having moved to Australia from New Zealand and having to navigate a vastly different public healthcare system and health insurance structure.

Trudie holds a Bachelor of Communication Studies (journalism major) from the Auckland University of Technology.

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