The rising cost of dental care is prompting Australians to consider buying extras health insurance.
New research from money.com.au reveals that nearly 24% of Australians will spend more on dental care if they could afford it, but only 9% consider extra health insurance essential, despite its potential to significantly reduce out-of-pocket costs. The survey found 26% of gen X are the most likely to say they’d like to invest more in routine dental care, followed by 23% of baby boomers and millennials and 21% of gen Z.
Data from the Australian Prudential Regulation Authority shows the average cost of a dental service rose by 5.3% to A$127 ($82) in 2024, up from A$121 in 2020. The average dental gap has jumped to nearly A$60 per visit, up from A$55 in 2020. The demand for dental services is up 32% since 2020, and insurers paid out A$3.62bn in dental benefits in 2024 (up 36%).
Money.com.au general manager of health insurance Chris Whitelaw said that extras health cover could help Australians better manage the cost of routine dental care, which is one of the most commonly claimed services. “A well-structured extras policy can cover two preventative check-ups per year, scale and cleans, X-rays, and fluoride treatments, which alone can cost hundreds annually. Some high-tier policies also include major dental like fillings, root canals, and even orthodontics. If you’re someone who regularly visits the dentist or has a family, extras cover can significantly offset these expenses,” he said.