Australian Health and Car Insurance Plans for Foreigners: A Complete Guide 2024

Health Insurance in Australia for Expats and Foreigners

Australia is one of the most popular expat destinations in the world. It has an exceptionally high standard of living thanks to its low population density, long life expectancy, high standards of literacy and education, and excellent standards of public healthcare. In fact, according to the Human Development Index (HDI), Australia ranks 7th in the world for quality of life. No wonder expatriates love it! And as they settle in, they will find that Australia’s public healthcare has a lot of benefits for them. This is what they need to know about public and private health insurance in Australia.

Overview of Australia’s Public Healthcare System

Australia has a system of universal public healthcare known as Medicare. It is delivered through a combination of private and public services. On the public side are public hospitals, community services, public health initiatives, and government-based organizations. The private system includes private hospitals and clinics, pharmacies, and doctors in private practice who provide care to the public, billing the government directly when they see patients.

The federal government funds public healthcare through taxes levied on salaries. Most taxpayers contribute 2% of their income to pay for Medicare. Those who earn little to no income have this contribution waived.

Private Health Insurance in Australia

Approximately 50% of Australians have private health insurance. And this number is growing. The Australian government is actively trying to encourage high-earning individuals to take out private insurance policies to augment their public coverage. This is part of a program to relieve the pressure on public facilities and reduce wait times. In fact, high earners face an extra tax unless they carry private insurance. Given that private health insurance coverage is usually more economical for younger people, it makes sense to acquire it early on, even before you hit the salary threshold.

Pros and Cons of Using the Public Health System

Australia has an excellent public healthcare system. However, the system is not perfect. There are waiting lists for specialist appointments and elective treatments. As well, travel is often necessary in order to access specialist care in rural areas. Thus, most expats in Australia opt to have private health insurance to supplement their coverage from the public Medicare program. As an added benefit, private healthcare means being treated in facilities that are more comfortable and private, with shorter waits and a greater choice of physicians.

However, as many expats will attest, private healthcare facilities do not extend into the realm of emergency services. And in many rural and remote regions, emergency services play a more prominent role in providing healthcare. Therefore, even if an expat prefers the level of care and comfort offered through private insurance, it is still well worth applying for public coverage through Medicare. You never know when you will need help such as emergency services, and it is best to be covered when you do.

Can Expats Qualify for Health Insurance in Australia?

Medicare is available to all Australian citizens and permanent residents. Therefore, all expats who qualify as permanent residents are eligible for coverage.

However, this does not mean that all visitors to Australia can receive Medicare. In particular, all expats moving to Australia with a working visa (and not permanent residency) are not eligible. In fact, they must prove that they have adequate private health insurance, or they will not receive your visa at all. Furthermore, all tourists and other short-term visitors to Australia should carry their own private travel medical insurance coverage

What You Need To Know About Applying for Medicare

Generally speaking, signing up for Australian Medicare is easy. Permanent residents can use the official Medicare site to check their eligibility and begin the application process. The website is well laid out and will review what documents you need to have and what steps you can expect. When you have all your supporting documentation, you head to a government service center. Assuming everything is in order, you get a Medicare number right away and a physical card arrives in the mail within a few weeks.

It is worth noting that Australia holds reciprocal healthcare agreements with several countries. If you are a citizen of one of those countries, you may access Medicare through a different path. Thankfully, it is usually a quick and easy process. The Australian government has a website that outlines all that you need to know.

Benefits of a Private Global Medical Insurance Plan

In Australia’s rural regions, healthcare services are occasionally covered by volunteers and charitable organizations. As well, certain services, including mental health care services, might be limited due to lack of resources. Holding a Global Medical Insurance Plan offers support and resources no matter where you are in the country. And it also ensures you have access to the best facilities, whether they are private or public, to maximize your treatment options.

Best Health Insurance in Australia for Expats

We recommend the Cigna Global Medical Insurance plan for most expats or international citizens living in Australia. It is our most popular plan as it offers global coverage, affordable pricing options, and world class service

Cigna Global Insurance Plan

The flexibility to tailor a plan to suit your individual needs
Access to Cigna Global’s trusted network of hospitals and doctors
The convenience and confidence of 24/7/365 customer service

Best Health Insurance Plan for US Citizens in Australia

For US citizens living in Australia, we recommend the GeoBlue Xplorer plan for several reasons. You are able to secure access to a premium international network of hospitals outside of the USA, and when you are in the USA, you will have access to the Blue Cross / Blue Shield network of hospitals.

Xplorer Worldwide Medical Plan

Premium Benefits, Coverage and Service
Define your deductible and prescription benefits
For Foreigners in the US or US citizens abroad

Clinics and Hospitals in Australia Accepting Health Insurance

Like most countries, you will be expected to pay for your doctor’s visit and medical expenses while in the country at the time of consultation. If your health insurance company does not make payments for medical expenses directly to the medical service provider, get an itemized receipt and the hospital’s contact information to send in for reimbursement. You can search for doctors under “Medical Practitioners” in the Yellow Pages, and most large towns and cities have 24-hour clinics. If you need emergency assistance by an ambulance, the police, or the fire department, dial 000 from any private or public phone for no charge. For non-urgent crimes, call 133 444 to reach the police’s non-emergency line.

Top Ten Hospitals in Australia

How Routine Doctor Visits Work in Australia

The family physician plays a central role in Australia’s healthcare system. You need to see a family physician for referrals for specialist care. As well, family physicians take care of all non-urgent concerns. Unlike some countries, in Australia, you do not turn up at the hospital’s emergency department unless it really is an emergency or you are not sure where else to go.

Nearly all family physicians operate on an appointment basis, though some may reserve walk-in spots for patients needing prescription refills and other routine requests. Arranging a doctor’s appointment in a rural area may take a week or more due to a shortage of physicians in the more remote areas of the country.

Through Medicare, approximately 75% of all doctors’ visit costs are covered by the government. That number rises to nearly 100% for hospital visits, as Medicare pays in-patient costs.

How to Find a Family Physician in Australia

You can always search for a family physician by asking friends, family, colleagues, and neighbors for recommendations. However, you can also use a government service to aid with your search. Health Direct has a GP search tool (which you can also use to find specialists, dentists, and even pharmacies). When you are connecting with a physician’s office, be sure to ask if they “bulk bill” or not. “Bulk billing” means the doctor bills Medicare directly. This is hugely desirable as it means patients do not need to pay for each visit and then apply to be reimbursed.

10 ways to get cheap car insurance in Australia

Contents

All vehicles driving the roads of Australia are required by law to carry some level of car insurance. But with the cost of coverage rising constantly, many car owners are left asking, “How can I get cheap car insurance in Australia?”

Insurance Business answers this question and more in this article. Apart from sharing practical tips on how to slash your car premiums, we will discuss the factors that dictate insurance rates, the different types of policies you can purchase, and where you can find the most affordable coverage. Read on and learn how you can become a money-saving expert with this handy guide on cheap car insurance in Australia.

How can you get cheap car insurance in Australia?

Insurers calculate car insurance premiums based on a person’s overall risk level – and because each driver’s profile and situation vary, there isn’t a straightforward answer to this question. An insurance company that can offer you cheap car insurance, for instance, may be the most expensive option for another.

To help drivers find ways to access cheap car insurance in Australia, Insurance Business compiled several practical tips and advice from industry experts. Here are the top 10 premium-reduction strategies we gathered.

1. Keep your driving record spotless.

Maintaining a clean driving history is among the most effective ways for you to get affordable car insurance premiums. A good driving record shows insurers that your likelihood of getting into an accident is low, meaning it will cost them less to insure you.

Some experts also advise drivers – especially the young and inexperienced ones – to take safety driver courses to lower their risk level. These types of training are designed to inculcate situational awareness and teach proper response to emergency situations, which can make a driver appealing to insurers.

2. Purchase only the coverage you need.

With policyholders bombarded with coverage options, picking the right policies that match your needs can be challenging. There are times when you may be tempted to purchase optional extras, but always remember that these add-ons have a corresponding effect on the premiums you pay.

Before buying additional coverage, it is always wise to first assess your needs. Sometimes, a basic plan may provide sufficient coverage and will not cause a dent in your wallet. If you’re finding it difficult to work out which policies suit your needs, an experienced agent or broker can help steer you in the right direction.

3. Be strategic about what you claim.

Each claim you make will have a corresponding impact on your premiums come renewal time, so it pays to be smart about what to claim on. By being strategic in your claims, you can protect your risk rating and future rates. Most insurers also offer policyholders who have a spotless claims record with no-claims bonuses. This type of discount, which builds up every year, can slash up to 70% off your annual premiums after five consecutive years.

4. Pay for your premiums annually.

Another practical way to access cheap car insurance in Australia is to pay for your premiums in one lump sum instead of in monthly instalments. Some experts equate monthly payments to paying for a loan as you will surely be charged interest and finance arrangement fees.

There are some car insurance providers, however, that allow policyholders to pay monthly at no extra cost. If you’re one of those who budget their finances month-to-month, these insurers may be worth considering.

5. Increase your excess, but…

A higher excess means lower premiums but remember that this also increases the amount you need to pay out-of-pocket in case of an accident or theft. The key to this strategy is keeping the excess amount to a manageable level. However, if you’re confident about your driving skills and generally a safe driver, you may be able to afford more risk and take advantage of this strategy.

Ever wondered how an excess works? Check out our comprehensive guide on this insurance component – also called an insurance deductible – to learn more.

6. Keep your car secure.

Insurance companies like it when you take measures to improve your car’s security and typically reward you with discounts for doing so. Among the most effective means of keeping your car secure is by installing anti-theft devices. These include alarms, immobilisers, and steering wheel locks.

It can also help if your car is parked in a secure location, such as a closed garage, as vehicles left out on the street are more vulnerable to a careless driver, theft, or vandalism.

7. Bundle insurance policies.

Some insurers offer multi-policy discounts when you take out two different types of policies with them. For example, bundling your car insurance with your homeowners’ or renters’ insurance. You can also access multi-vehicle discounts if you insure more than one vehicle with your insurer, as long as these vehicles are registered to your household.

Before taking this route, however, be sure to check whether you are really getting better value or if splitting up your policies with different insurers leads to cheaper premiums.

8. Switch to a cost-efficient vehicle.

The choice of vehicle plays a key role in getting cheap car insurance in Australia. Picking a car that’s easy to repair and source parts for can help lower your premium costs. Some experts, however, warned against looking at just the car’s market value as some vehicles that cost less to purchase can be expensive to repair.

9. Minimise the distance you travel.

Some insurers will provide you with discounts if you drive less than 10,000 kilometres per year as driving less also reduces the likelihood of you getting into an accident. If possible, you can also use public transportation to drive down your mileage further.

Another option is to choose a pay-as-you-drive policy, which is cheaper and more suited for people who don’t drive often.

10. Do not let your car insurance policy auto-renew.

Reviewing coverage and shopping around for a better deal is something that experts recommend that you practice every year as this allows you to find a policy that you’re happier with. It can also help determine if you’re still getting value from your current car insurance.

Some experts suggest that you be on the look-out for special offers as there are insurance providers that will match or even beat their competitor’s rates to win clients.

Here’s a summary of our top tips on getting cheap insurance in Australia.

Where can you find cheap car insurance in Australia?

Based on several personal finance and insurers’ websites that Insurance Business checked out, the average cost of car insurance premiums in Australia is about $1,300 annually or $108 per month. Our research also found that:

Victoria has the highest yearly rates among all states and territories at about $1,465 or $122 monthly.
On the other end of the spectrum is Tasmania with respective annual and monthly premiums of $870 and $72.
Average annual and monthly regional car insurance premiums are $1,000 and $83, respectively.
For metro areas, yearly rates are about $1,235 or $103 monthly.

The table below shows a state-by-state breakdown of how much Australians pay in car insurance premiums, starting from the cheapest.

Your rates, however, can be significantly higher or lower depending on a range of factors that we will discuss in the section below.

How are car insurance premiums calculated in Australia?

Insurers consider a range of factors when calculating car insurance premiums, which makes it difficult to come up with a one-size-fits-all figure to cover every need. The following parameters will also determine if you are eligible for cheap car insurance in Australia.

Driver’s age: Young motorists are often perceived as riskier to insure and given higher premiums than older and more experienced drivers. If you’re a parent considering adding your teenage children to your policies, bear in mind that this can push up your premiums depending on your kid’s driving record.
Driver’s gender: Male motorists are statistically more likely to get involved in accidents and other risky driving practices, that’s why their car insurance rates are also higher compared to their female counterparts.
Driving record and claims history: Past accidents and claims increase your risk level, driving up your quotes as well. On the flipside, if you have a clean driving and claims history, insurers often reward you with discounts.
Coverage level: Basic coverage comes with the cheapest rates, but you can add optional extras – such as windscreen excess and roadside assistance – with a corresponding impact on premiums. Comprehensive policies, meanwhile, are more expensive, but already include many of these add-ons.
Choice of vehicle: A car’s market value is one of the biggest factors affecting premium prices. It is determined by looking at its age, make, model, condition, and kilometres travelled. Some insurers give an allowance for accessories under market value coverage, but this is subject to limits.

Premiums, however, work differently, depending on the type of policy. If you want to know how, you can check out our complete primer on insurance premiums.

At what age does car insurance get cheaper in Australia?

Your age is among the biggest determinants of the amount of car insurance premiums you will pay. Typically, if you are between your 30s and 40s, you are charged lower rates compared to those in their 20s, who are considered high-risk drivers.

Those who have reached senior age, however, are also charged higher premiums, although they are not deemed risky drivers. According to the Office of the Road Safety (ORS), senior motorists bring a different set of risks that stem more from the condition of their health than their driving behaviour.

If you want to learn more about how car insurance works for this age group, you can check out our guide to car insurance for Australian seniors and pensioners.

How does car insurance work in Australia?

Before you can find cheap car insurance in Australia, you must be aware of the coverage options available. There are four main types of general motor vehicle insurance in the country. These are:

1. Compulsory third-party (CTP) insurance

This is also known as green slip insurance in New South Wales or transport accident charge (TAC) in Victoria. It is the minimum coverage legally required in each state and territory. This covers your liability if other people are injured or killed in a vehicular accident. CTP insurance, however, does not cover your injuries and those sustained by your passengers, and damages to any vehicle or property. Compulsory third-party coverage is paid for when you renew your vehicle registration.

2. Comprehensive insurance

Comprehensive car insurance offers the broadest protection, that’s why it also has the highest premiums. This type of policy covers damages to your vehicle, as well as those of other people’s vehicles and property if you get into an accident, regardless of who is at fault.

Comprehensive coverage also provides protection against the following:

Vandalism
Theft
Storm and hail damage
Accidental losses

3. Third-party property damage (TPPD) insurance

TPPD insurance covers the cost to repair another person’s property, including their vehicle, due to an accident. This type of policy, however, does not pay out for damages sustained by your vehicle. If the accident involves an uninsured vehicle, some car insurers provide coverage only up to a certain amount.

4. Third party fire & theft (TPFT) insurance

TPFT coverage offers the same protection as TPPD insurance but extends coverage to include repair or replacement costs if your vehicle is stolen or damaged by fire, up to a specified limit.

One thing to take note of is that although cheap car insurance in Australia can often be tempting because of the initial savings you can make, it comes with its set of risks. By purchasing cheaper coverage, you may end up losing more, especially if the protection such policies offer is not enough to cover all your costs. To get the most out of your car insurance, you need to understand the choices available to you and the level of coverage you require.

Car insurance, however, works differently for imported vehicles. Find out how much it costs to insure one in our guide to insuring imported vehicles in Australia.

Where to get cheap car insurance in Australia

When looking for cheap car insurance, it’s important to get a good deal that’s also reliable. We recommend seeing our Best of Insurance page to find a company that’s vetted and trusted. Use the tactics above to get your insurance rates down and use one of our recommended insurance companies for reliability.

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