When Is The Best Time To Change Health Insurance In Australia?
Published September 14, 2026
In April comes the rate hike, in July come the resetting of the extra cover limits and in December, things are calmer than expected. So when is the best time to make the switch?
The brief answer
The best time to switch to a different policy is always when you find one that gives you better value. However, there are two times in which switching makes much more sense: in March/early April (before the annual increase in premiums which is effective from 1 April) and the time just before any life change event (31, marriage, birth of a baby, children leaving the policy). It doesn’t matter what financial year it is, because health funds allow switching anytime of the year and if done correctly, all your waiting periods will be kept.
The reasons why March and early April is the busiest switching period
In every year, premiums are increased in the funds on 1 April. There is a great variation. The average industry increase is 4.41% in 2026, while individual funds’ increases are between 1.98% and 5.98%. If your fund is increasing at a greater pace compared to the average, you can save hundreds of dollars simply by switching to another fund without making changes to your insurance cover.
Furthermore, the 2026 prices of the funds are announced starting from late February, when the comparison can be done. In April, the prices become valid and hence any saving that could be secured by switching will be lost due to the premium increase.
Other Suitable times to switch
Before you turn 31
If you don’t have hospital cover by 1 July after your 31st birthday, you will be charged Lifetime Health Cover (LHC) loading, which is an extra 2% for every year you delayed getting hospital cover, with a maximum LHC loading of 70%. Getting any tier of hospital cover before that date prevents LHC loading.
Before a baby
Pregnancy and childbirth cover is on the Silver tier or above, with a waiting period of 12 months. If you’re expecting, switch to a policy with obstetrics 12 months ahead of time.
After life changes
Marriage, moving in together, children leaving cover, or retirement make changing health insurance worthwhile. Post-divorce singles cover, or reducing from Gold to Silver Plus when the children leave, will save you around $1,500–$3,000 per year.
Don’t switch when it won’t be worthwhile
If you’re in the middle of treatment, mid-pregnancy, or expecting to claim something with a long waiting period that you’ve already been waiting on your existing cover, talk to an advisor first. Waiting periods will transfer on equivalent cover, but only if the new cover provides the benefit.
Commonly asked questions
No – all waiting periods you have served in equivalent cover carry across to your new fund. You will only serve additional waiting periods for benefits in your new cover which were not included in your old one.
No – you may change at any time. People normally change in March to lock in the premium before the annual increase is applied.
There is no cancellation or exit penalties charged by health funds in Australia. Your new fund will process the change and refund any un-used premiums from your old fund.
For more guidance on when to switch health insurance, visit Utility Market for practical tips to help you make informed decisions.
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