Where You Can Actually Save Money
Most people overpay because they don't understand which parts of health insurance are luxury and which are essential. The good news: you can cut premiums significantly without touching the core protections you need.
The three biggest cost drivers are: your excess amount, your major medical tier, and add-on covers (dental, vision, maternity). Adjusting these can cut your premium by 40-50%.
The Excess Lever: How High Should You Go?
Your excess is the most direct way to cut costs. A $250 excess might cost $1,200/year, while a $1,000 excess costs $800/year — a $400 annual saving. But you must have $1,000 in savings to make this work.
Here's the math: if you claim once every 3 years on average, a higher excess actually costs you less over time. If you claim every year, a lower excess is smarter. Look at your claim history.
Surgical-Only vs Major Medical: A Practical Breakdown
Surgical cover costs 60-70% less than major medical. You only pay out-of-pocket for specialist consultations and diagnostic tests. This works if you're young, healthy, and unlikely to see specialists.
But if you have any ongoing condition (hypertension, diabetes, arthritis), major medical saves you thousands in specialist consultation fees. The true cost of surgical-only emerges when you need years of specialist appointments before eventually having surgery.
Which Add-Ons to Cut
Dental and vision coverage are rarely good value. You're paying $20-30/month for cover that reimburses at 50-60% after a fixed benefit amount. It's better to budget $300/year for dental and $200/year for vision out-of-pocket.
Mental health coverage (available only through Accuro as an add-on) is worth keeping if you're prone to therapy. Critical illness cover is worth the extra $15-20/month if you're the sole income earner.
Switching to a Cheaper Insurer
This is the biggest lever. Switching from Southern Cross to Partners Life can cut your premium by 25-30% for the same cover. AIA is 15-20% cheaper than Southern Cross, though their real cost is lower when you factor in Vitality discounts.
Get quotes from Partners Life, AIA, Accuro, and Southern Cross for your exact requirements. The difference will likely surprise you.
The No-Tricks Strategy to Maximum Savings
- Set your excess to $750-1,000 (you must have emergency savings)
- Choose major medical only if you have any chronic condition; surgical-only if perfectly healthy
- Skip optional add-ons except critical illness
- Switch to Partners Life or Accuro if you're with Southern Cross
- Review annually — insurers adjust premiums, and you may find better value
You'll typically save 30-40% without losing meaningful cover.