Almost one in 10 (9%) Australians required health insurance in the past three years and were forced to shell out an average of AUS$225 (£118) as a result of not having it, according to research released by Finder.
That represents 2.3 million people out of Australia’s population of about 26 million.
The Finder survey of 1,062 respondents also found almost one in five (17%) Australians have needed insurance cover in the last three years but were not insured or did not have suitable cover.
Finder is a financial comparison site for a range of products and services including health insurance. In Australia its website receives more than four million visits per month.
When asked what the main consequence of not having insurance was, almost half (47%) said they were forced to dip into their savings to account for the cost.
Another one in five people (20%) borrowed money from a friend, while 11% went into debt to bear the full brunt of the fees.
But 16% – equivalent to more than 570,000 Australians – just left the problem untreated.
The survey follows another from last month which found that the rising cost of health insurance was driving more than three million Australians to drop their coverage this year.
Tim Bennett, lead publisher at Finder, said a sufficient policy can be a financial lifesaver in the long run.
“With insurance, it’s always a case of you don’t need it until you do.
“Unexpected events can strike anyone and at any time, and being underinsured can be just as risky as being uninsured.
“Underinsurance is like wearing a hospital gown – you may think you’re covered, but you really aren’t.”
Bennett urged Australians to make sure coverage reflects the actual value of what they are trying to protect.
“Shopping around for insurance options will enable you to get the most appropriate coverage you need at the price that fits your budget. New customers often get the best deal,” Bennett continued.
“Having an emergency fund can also help offset some of the burden of unexpected costs so you don’t have to rely on family and friends, or go into unnecessary debt,” Bennett said.
