How loyalty could be costing Aussie households, big time by Sophie Ryan, iSelect Spokesperson
A new year is well and truly underway, and many of us may have been hoping for some cost-of-living relief in 2023, but alas… further interest rate rises expected and health insurance premiums are about to start rising again[1]. We know… you might be thinking ‘haven’t we been through enough over the last few years?’ Comparison service iSelect recently commissioned YouGov to conduct a national survey, and it found that more than half of Aussies surveyed (64 per cent) agree that the increased cost-of-living is having a negative impact on their quality of life[2].
We understand times are tough for many families right now, but the study also suggests that when it comes to common household bills and expenses, Aussie households nationwide could be losing out on $18.7 billion in savings annually by remaining loyal to the same providers and/or plans[3]. Think you could be one of those households paying the ‘loyalty tax’? Read on as we share the simple steps that could help you recover any lost savings.
1. Find out where to look
When we mention common household bills and expenses, savings could be found by switching providers and/or plans for things like your gas or electricity deal, your health insurance policy, car insurance, or perhaps your home loan.
The YouGov research suggests that Aussies could have potentially saved a combined $3.9 billion on their household bills and expenses by switching providers and/or plans in the past 12 months and it’s estimated this could equate to an average of around $1,140 in annual savings for each Aussie household that switched and saved last year[3]. So, if you have it’s time to seriously consider making a list, starting from the top and working your way down… seeing if you can uncover some extra savings. Depending on what insurance plans or policies your household has, your list could be quite long or a little shorter, but it’s a good idea to just start somewhere. This brings us to our next step to help you simplify the process.
2. Consider putting your health first
Health insurance premiums are on the rise again in 2023. The average increase this year is 2.90 per cent, which works out to an average increase of around $134 for a family or couples policy annually, while singles will be paying around $60 a year more on average1 This may not sound like much, but an increase is still an increase, and every single dollar counts during these tough times.
If you’re a policyholder and it’s been a few years since you reviewed your cover, now could be a great time to take action and compare your policy against a range of other policies and providers to see if you could switch and reclaim any lost savings. The YouGov research found that Aussie households surveyed that switched their health Insurance plan and/or provider in the last 12 months found an average savings of $520 a year!
Apart from comparing and switching, there are other ways you could potentially save on your private health insurance. Generally, the higher your excess is, the lower your premiums will be. Also, if you can afford to and your fund allows it, consider paying your premium upfront for a full 12 months ahead of any increase to your premium this year. This will lock in your current rate.
3. Need help? We’ve got you!
We understand life is busy and taking the time to regularly review bills and expenses may seem like a mammoth task, but it doesn’t have to be. A comparison service (such as iSelect*) can help you. From your health insurance policy, your energy plan to your car insurance (just to name a few!) iSelect can help by comparing a range of insurers, plans and policies and help you find any lost savings. So why not get started today!
iSelect disclaimer
*iSelect does not compare all products in the market. The availability of products iSelect compare may change from time to time. Not all products made available from iSelect’s providers are compared by iSelect and due to commercial arrangements, area or availability, not all products compared by iSelect will be available to all customers. Some products and special offers may only be available from iSelect’s call centre or website. Click here to view iSelect’s range of Providers.
[1] Sources: More rate pain on the way as nation’s AAA credit rating affirmed, Sydney Morning Herald, 31 January 2023. & Minister Butler’s media | Health Portfolio Ministers and Aged Care
[2] Source: iSelect commissioned YouGov Galaxy Pty Ltd to conduct a national online survey between 8 December and 13 December 2022. The sample is n=2,000 Australian sole/joint household decision makers aged 18 years and older, with data weighted by state and household size.
[3] Source: iSelect commissioned YouGov Galaxy Pty Ltd to conduct a national online survey between 8 December and 13 December 2022. The sample is n=2,000 Australian sole/ joint household decision makers aged 18 years and older. The survey results were weighted by state and household size and projected to all Australian households based on the population data published by the ABS using the latest Census conducted in 2021.
