A review of more than 17,000 health insurance policies by consumer group Choice has found families could save more than $1500 by switching to a better value fund.

The people’s watchdog says switching remains the single best move cost conscious Australians can make to save with their health insurance.

In one case Choice found savings between $559 and $1529 per annum could be made on top hospital cover with no excess. A saving of up to $1320 a year on top extras cover could also be made.

“It’s very tempting to stay with the same fund. However, there are savings of $50 to $100 a month for families willing to switch,” says Choice spokesperson, Ingrid Just.

Australians can also get better comprehensive cover by purchasing separate hospital and extras, rather than combining them in one policy.

“Buying combined health insurance may seem like an easy option, but separating hospital and extras can save money as well as ensuring the best possible cover,” says Ms Just.

Choice says health insurance companies make a lot of money when people take out extras cover without making claims.

The people’s watchdog says that, "if you have extras, make sure you are using them and getting back a good portion of your monthly premium."