Rising Premiums Spur Australians’ Insurance Regrets

A growing number of Australians are expressing regret over delaying private health insurance, as premiums continue to climb and healthcare costs place increasing strain on household budgets. New research by the Finder reveals that approximately one in five adults now wish they had secured coverage earlier in life.

The survey, conducted among 1,011 respondents in February 2026, indicates that 19% of Australians—equivalent to around 4.1 million people—regret postponing private health insurance. This sentiment reflects a broader issue of underinsurance, leaving many individuals vulnerable to unexpected and potentially significant medical expenses.

Among those expressing regret, 12% reported being uninsured during relatively minor health issues, such as dental treatment, whilst a further 7% said they lacked cover when confronted with more serious medical conditions. These findings underscore the financial risks associated with delaying insurance, particularly as healthcare needs can arise unpredictably.

Taylor Blackburn, personal finance and insurance specialist at Finder, cautioned that attempts to save money by postponing coverage can ultimately prove counterproductive. He noted that while avoiding premiums may seem financially prudent in the short term, it often leads to greater out-of-pocket costs when unanticipated medical treatment becomes necessary.

The findings come at a time of rising insurance costs. Australia’s Health Minister, Mark Butler, recently approved an average increase of 4.41% in private health insurance premiums—the largest annual rise in a decade. Some higher-tier “gold” policies are expected to see increases of up to 25%, intensifying concerns about affordability.

Currently, Australians with private health insurance pay an average of $164.20 (A$238) per month. Following the approved increase, this is projected to add approximately $86.90 (A$126) annually to the typical policyholder’s expenses. Whilst this rise may appear modest on a monthly basis, it compounds the financial burden for households already managing cost-of-living pressures.

The survey also sheds light on broader attitudes towards private health insurance across the population:

Notably, satisfaction remains relatively high among long-term policyholders, with 39% stating they have always maintained coverage and are content with their decision. However, a sizeable minority—15%—indicated that despite always being insured, they question whether the expense has been worthwhile.

Generational differences are also evident. Younger Australians appear particularly prone to regret when faced with serious health challenges. Among Generation Z respondents, 16% said they wished they had taken out insurance before experiencing a major health event. This compares with 7% of millennials, 3% of Generation X, and just 1% of Baby Boomers.

These findings suggest that younger individuals, who are often more inclined to delay insurance due to perceived invulnerability or financial constraints, may be disproportionately affected when unexpected health issues arise.

Finder’s Consumer Sentiment Tracker, which has been running since May 2019, provides a nationally representative snapshot of Australian attitudes towards financial products, including insurance. The latest data highlights a clear tension between rising premiums and the risks of remaining uninsured.

As healthcare costs continue to escalate, the debate over the value and accessibility of private health insurance in Australia is likely to intensify, particularly for younger and lower-income households balancing immediate affordability against long-term financial security.