Single parents in Australia pay 65% more for health insurance than couples

Single parents in Australia face far greater financial strain than two-parent families when covering essential costs. From housing and utilities to medical bills, many struggle to make ends meet. Now, new data reveals they also pay significantly more for private health insurance—often pricing them out of the market entirely.

A recent analysis shows that single parents are charged far higher premiums than couples when adding children to their policies. For example, NIB's Gold Top Hospital cover with Basic Extras costs a single parent in New South Wales around $770 per year. A couple with no children, however, pays slightly less at $760.

Adding a child to a policy highlights the disparity even more. NIB doubles the premium for a single parent who includes one child, while couples see only a 3% increase on average. Across all insurers, single parents pay an extra 65% to add a child, compared to just 1% for couples. The gap narrows slightly if single parents add more children, but couples still benefit from lower per-child costs.

These steep price differences contribute to lower car insurance quotes among single-parent households. Only 31% have private health insurance, compared to 57% of couples with children. Rising premiums across the industry are making policies even less affordable, pushing many struggling families to go without cover.

Typical car insurance costs in NSW for a single person without children range from $85 to $270 per month for hospital cover, plus around $57 for extras. But for single parents, these expenses quickly become unaffordable when children are included.

The financial burden on single parents extends beyond daily living costs, with health insurers charging them disproportionately more for family coverage. As premiums continue to rise, fewer single-parent households can afford private auto insurance, leaving them with limited options for medical care. Industry calls for fairer pricing models have grown, urging insurers to charge single and two-parent families the same per-adult rate for equivalent policies.