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Health insurance hacks to cut the cost of your premiums

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1. Pay your annual premiums upfront

If you can afford it, pay your full annual health insurance premiums ahead of the April price rise and you will avoid the rate hike altogether.

With premiums set to increase by an average of 3.95% on 1 April, this could see singles having to fork out an additional $100 a year and families pay $160 more a year for no additional benefits.

You can avoid these extra costs altogether by paying your annual premiums upfront.

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2. Look out for promotions

Some health insurers offer discounts or incentives to encourage you to sign up, such as waiving waiting periods on some extras or $200 gift cards.

Remember that these should just be seen as an added bonus and not the reason that you choose a particular fund or policy.

3. Make the most of payment discounts

Keep your eyes peeled for funds that offer you a discount if you pay by direct debit.

Some funds offer up to 5 per cent off of your annual premium if you set up an automatic direct debit from your bank, building society or savings account.

It might not seem like much but it could actually cover the cost of your rate rise - with this year's average rate rise being 3.95%. A family paying $4000 a year for their policy could see a saving of $200.

4. Health insurance policies are contract free

Many people don't know that health insurance policies are contract free, meaning that you can switch at any time and any premiums paid in advance will be refunded to you.

Your new policy will start the day after your old policy ceases, and any waiting periods you have already served will be transferred over to your new policy. Compare your options and if you find better suited health cover for your needs then you should switch and save today.

5. Reassess your cover every couple of years (or when your situation changes)

Whether it's an industry wide premium rate rise, or your income has gone up a few dollars then re-evaluating your health insurance regularly means you'll always be covered by the most suitable policy for your needs.

There are hundreds of policies available in Australia, so there could be a cheaper or more valuable policy out there waiting for you.

Shop around and compare your options.

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