A recent nationwide survey by comparison site Money.com.au found that many Australians view health insurance – particularly extras cover – as providing the highest return for money spent compared to other insurance products.
Of those surveyed, 20% said extras policies delivered the most savings, while 19% pointed to hospital insurance.
Chris Whitelaw, general manager of health insurance at Money.com.au, said the findings suggest a shift in how policyholders assess the value of health coverage.
“Australians are placing increasing value on the day-to-day savings extras policies offer because you’re generally more likely to claim on dental, physio, optical, and other allied health services than you are on hospital treatments,” he said.
He noted that extras coverholders typically submit about five claims per year, compared with two for hospital policies.
Whitelaw recommended policyholders periodically review their coverage and usage patterns to ensure they’re making the most of their entitlements.
In contrast to health insurance, only 10% of survey respondents cited car or life/income protection insurance as offering the most financial benefit.
Travel insurance was selected by 7%, while just 4% felt home and contents insurance provided the greatest savings.
When asked which types of insurance offer the most peace of mind, 88% of respondents identified home and contents insurance, followed by life insurance (80%) and travel insurance (79%).
Sean Callery, a finance specialist at Money.com.au, said that while some insurance products are used often and yield immediate returns, others are valued for the security they offer in exceptional circumstances.
“With insurance types like car, home, life, or travel, the goal is to have them and never need to use them. They may not feel useful day-to-day, but they’re crucial in high-risk or emergency situations,” he said. “It shows that while these policies might not deliver a financial return through regular use – like extras cover does – they offer reassurance and the potential for critical support when it really matters.”
However, a separate Money.com.au survey examined barriers to using hospital insurance.
Among families holding such policies, 23% admitted to skipping hospital claims due to gap fees and other out-of-pocket costs. This was higher than the 17% of couples and 15% of singles who gave the same reason.
Only 43% of families said they used their private hospital insurance when medical treatment was needed. That figure was slightly higher for singles at 44% and significantly higher for couples at 64%.
