Switching health insurance: How to change providers?

Private health insurance premiums typically increase every year on April 1, but thanks to in part to recent cost of living pressures, 2024 saw the biggest average premium hike in five years. In 2025, some policies are set to rise by up to 11.2%—the largest percentage increase since 2018.

If you’re feeling the pinch, then switching your health insurance to a cheaper provider may be one way of reducing your overheads.

It’s important, however, to weigh up more than just the cost when considering changing health funds. Factors such as the level of coverage, waiting periods, and your personal needs can determine the suitability of a health fund.

If you’re looking for a place to get started, Canstar’s annual Health Insurance Awards recognise the providers who offer outstanding value to customers. Comparing policies is the first step to reviewing your current cover, but making the switch couldn’t be easier. Here’s a basic rundown on how to switch private health insurance.

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How do I switch health insurance?

When switching health insurance providers, your new provider can typically handle most, if not all, of the process for you. You’ll need to provide your new provider with the details of your old insurer. Your new provider can then request to cancel your old policy on your behalf.

Your old health insurance provider will need to submit a transfer certificate or ‘clearance certificate’ to your new insurer. This will include information about your previous type, and level of cover, waiting periods and your claims history—proof, essentially, that you have had ongoing health insurance coverage.

When changing health insurance, your old fund is legally required to provide the transfer certificate to your new provider within 14 days, to help ensure continuity of your cover.

Do I need to cancel health insurance before switching?

If you choose to switch to a new health insurance provider, they will typically be able to cancel your previous one for you, although be aware this is not always the case, and you may need to cancel your policy yourself.

If you have direct debits set up with your old health insurance provider, remember to cancel these once you have switched to your new fund.

Most insurance providers also offer a 30-day cooling-off period. This means that if you change your mind within 30 days of joining the new fund and haven’t made any claims, you can often ask for a refund of any premiums you have paid.

Can I change my private health insurance any time?

Yes, you can switch your private health insurance at any time. If you’ve paid any premiums in advance, your old health fund should refund you for the rest of the year’s cover when you change funds.

In some cases, it may be beneficial to switch your health insurance ahead of the annual increase, which usually occurs on 1 April each year. This is because many health funds allow you to pay your premiums in advance.

When is the best time to switch health insurance?

In some cases, it may be beneficial to switch ahead of the annual increase. This is because many private health funds allow you to pay your premiums in advance.

One benefit of pre-paying is that often you can lock in current premiums before the April 1 increase. The potential savings will depend on how much your new provider is increasing its premiums. A handful of insurers also offer a discount if you pay your premiums in advance.

Do I have to re-serve waiting periods?

If you switch private health insurance to a policy with the same or a lower level of cover as your previous policy, you typically won’t need to re-serve the waiting periods you have already completed. But waiting periods may still apply for any new or added services or benefits under your new policy. 

You may also need to serve any waiting periods that you didn’t complete with your old insurer. Depending on the insurer, you may also need to serve the waiting periods again if there is a gap between the end of your old policy and the start of your new cover.

What happens to my annual limits on extras?

It’s important to check with your new insurer how any annual limits will work when you change your extras policy or a combined policy that includes extras cover. Annual limits are the maximum amount you can claim back on extras (services such as dental, optical and physio) each year.

According to the Private Health Insurance Ombudsman (PHIO), when changing health funds your new insurer can reduce any annual benefit limits by the amount you have already claimed for the applicable extras under your previous policy that year.

Also keep in mind any lifetime limits that may apply. These are the total amount you can claim for a service in your lifetime across insurers. Lifetime limits often apply to services such as orthodontics. If you’ve already claimed up to your new policy’s lifetime limit, you won’t be able to claim any further benefits for these services.

Does switching health insurance affect my Lifetime Health Cover (LHC) loading?

Changing health insurers should not affect your Lifetime Health Cover (LHC) loading status, provided you maintain a hospital policy. The LHC loading applies a 2% increase to your hospital premiums for every year after your 30th birthday that you don’t take out hospital cover, up to a maximum loading of 70%.

To cover gaps, such as when you are switching from one insurer to another, you are allowed to be without hospital cover for a total of 1,094 days (three years minus one day) during your lifetime, without it affecting your LHC loading.

Will I get to keep any loyalty bonuses or discounts?

Loyalty bonuses usually do not carry over to the new insurer, but it may be worth checking with your health insurance provider to see if it is possible.

Your old insurer may have also offered you a discount, such as an age-based discount for people aged between 18 and 29. For age-based discounts, insurers can choose whether they will be honoured if you switch products or funds.

It’s a good idea to check this and other discounts before changing insurers. Some private health insurers also offer sign-up discounts for new members.

Switching private health insurance can be a fairly streamlined process, but it’s important to do your research before committing, to help ensure you find a policy that best suits you.

Cover image source: Jacob Lund/Shutterstock.com