A better lateral current confinement is essentially important for GaN-based vertical-cavity-surface-emitting lasers (VCSELs) to achieve lasing condition. Therefore, a buried insulator aperture is adopted. However, according to our results, we find that the current cannot be effectively laterally confined if the insulator layer is not properly selected, and this is because of the unique feature for GaN-based VCSELs grown on insulating substrates with both p-electrode and n-electrode on the same side. Our results indicate that the origin for the current confinement arises from lateral energy band bending in the p-GaN layer rather than the electrical resistivity for the buried insulator. The lateral energy band in the p-GaN layer can be more flattened by using a buried insulator with a properly larger dielectric constant. Thus, less bias can be consumed by the buried insulator, enabling better lateral current confinement. On the other hand, the bias consumption by the buried insulator is also affected by the insulator thickness, and we propose to properly decrease the insulator layer thickness for reducing the bias consumption therein and achieving better lateral current confinement. The improved lateral current confinement will correspondingly enhance the lasing power. Thanks to the enhanced lateral current confinement, the 3dB frequency will also be increased if proper buried insulators are adopted.