TL;DR
Private Medical Insurance (PMI) offers invaluable peace of mind, providing prompt access to high-quality medical care when you need it most. However, many people in the UK believe it's an unaffordable luxury. At WeCovr, where our experts have arranged over 900,000 policies of various kinds, we know this isn't true.
Key takeaways
- How it works: You can choose an excess level, typically ranging from £0 to £1,000 or more. The higher the excess you choose, the lower your premium will be. The excess is usually payable once per policy year, regardless of how many claims you make.
- Insider Tip: Choosing a modest excess of £250 or £500 often provides the best balance between premium savings and out-of-pocket costs if you need to claim.
- How it works: If the NHS can treat you within six weeks, you agree to use the NHS. If the wait is longer, you can use your private policy immediately.
- The Benefit: Given the current pressures on the NHS, waiting lists for many procedures are significantly longer than six weeks. This means you are very likely to still be able to use your policy, but you benefit from a premium reduction of up to 30%.
- Real-Life Scenario: You need a knee replacement. The NHS waiting list in your area is 45 weeks. With the six-week option, your private treatment would be approved immediately.
Private Medical Insurance (PMI) offers invaluable peace of mind, providing prompt access to high-quality medical care when you need it most. However, many people in the UK believe it's an unaffordable luxury. At WeCovr, where our experts have arranged over 900,000 policies of various kinds, we know this isn't true. Securing affordable private health insurance is entirely possible—if you know how to tailor a policy to your specific needs and budget.
This guide provides an expert breakdown of the proven, practical strategies you can use to significantly reduce the cost of your private health cover, legally and safely. We'll demystify the jargon and empower you to make informed decisions, ensuring you get the best possible value without compromising on essential protection.
Tips for lowering the cost of private medical insurance legally and safely
Finding affordable private health insurance is a balancing act. The goal is to lower your monthly or annual premium while retaining the cover that matters most to you. The key is to understand which policy levers you can pull and the direct impact they have on price.
By customising your cover, you can avoid paying for benefits you don't need and focus your budget on what's truly important: fast access to diagnosis and treatment for acute medical conditions.
Understanding What Drives Your PMI Premium
Before we explore cost-saving tactics, it's crucial to understand the core factors that insurers use to calculate your premium. These elements determine your baseline cost, which you can then adjust using the tips that follow.
| Factor | Why It Matters | Impact on Premium |
|---|---|---|
| Age | This is the single most significant factor. As we get older, the statistical likelihood of needing medical treatment increases. | High. Premiums rise with age, often with notable increases each decade (e.g., at 40, 50, 60). |
| Location | The cost of private medical care varies significantly across the UK. Hospitals in Central London, for instance, are far more expensive than those in other regions. | Medium to High. A London-based policyholder will pay more than someone in rural Wales for the same level of cover. |
| Smoker Status | Smokers and recent ex-smokers are considered a higher insurance risk due to the increased likelihood of developing a wide range of health conditions. | Medium. Non-smokers can expect to pay 10-20% less than smokers. |
| Level of Cover | The more comprehensive your policy (e.g., full outpatient cover, mental health support, therapies), the higher the cost. | High. This is the area where you have the most control to reduce costs. |
| Underwriting | The method used to assess your medical history (Moratorium or Full Medical Underwriting) can influence the initial and long-term price. | Low to Medium. Can affect initial pricing and how pre-existing conditions are handled. |
12 Proven Strategies to Lower Your Health Insurance Costs
Here are the most effective ways to reduce your private medical insurance premiums. An expert broker, like WeCovr, can help you model the financial impact of each option.
1. Increase Your Policy Excess
An excess is the amount you agree to pay towards the cost of a claim before the insurer pays the rest. It's one of the quickest and most effective ways to lower your premium.
-
How it works: You can choose an excess level, typically ranging from £0 to £1,000 or more. The higher the excess you choose, the lower your premium will be. The excess is usually payable once per policy year, regardless of how many claims you make.
-
Insider Tip: Choosing a modest excess of £250 or £500 often provides the best balance between premium savings and out-of-pocket costs if you need to claim.
Here’s an illustrative example of the potential savings:
| Excess Amount | Illustrative Monthly Premium | Potential Annual Saving |
|---|---|---|
| £0 | £85 | £0 |
| £250 | £74 | £132 |
| £500 | £65 | £240 |
| £1,000 | £55 | £360 |
2. Add a Six-Week Option (NHS Wait List)
This is a hugely popular and impactful cost-saving feature. If you include a six-week option, your private cover will only activate if the NHS waiting list for the inpatient treatment you need is longer than six weeks.
- How it works: If the NHS can treat you within six weeks, you agree to use the NHS. If the wait is longer, you can use your private policy immediately.
- The Benefit: Given the current pressures on the NHS, waiting lists for many procedures are significantly longer than six weeks. This means you are very likely to still be able to use your policy, but you benefit from a premium reduction of up to 30%.
- Real-Life Scenario: You need a knee replacement. The NHS waiting list in your area is 45 weeks. With the six-week option, your private treatment would be approved immediately.
3. Select a Limited Hospital List
Insurers group UK private hospitals into tiers based on their costs. By agreeing to use a more restricted list of hospitals, you can achieve substantial savings.
- How it works: Instead of a "Full National" list that includes expensive central London hospitals, you can choose a "National," "Regional," or "Local" network.
- WeCovr Adviser Tip: Before selecting a limited list, check which hospitals are included and ensure they are conveniently located for you. There is no point saving money if your nearest approved hospital is 50 miles away. Our advisers can provide you with the exact hospital lists for each insurer.
4. Adjust Your Outpatient Cover
PMI is primarily designed for inpatient treatment (when you need a hospital bed overnight). Outpatient services (consultations, diagnostics like MRI/CT scans) can be a major driver of cost.
You have three main options:
- Full Outpatient Cover: The most expensive option. All eligible consultations and diagnostic tests are covered in full.
- Capped Outpatient Cover: You set a monetary limit (e.g., £500, £1,000, or £1,500) per policy year. This is a great compromise, covering the initial stages of diagnosis while keeping premiums manageable.
- No Outpatient Cover: The cheapest option. You would pay for all specialist consultations and diagnostic scans yourself but would be covered for any subsequent inpatient treatment.
5. Consider Your Underwriting Method Carefully
The way an insurer assesses your medical history affects your cover and price.
- Moratorium (Mori) Underwriting: This is the most common type. You don't need to declare your full medical history upfront. Instead, the insurer automatically excludes any condition you've had symptoms, treatment, or advice for in the 5 years before the policy started. This exclusion can be lifted if you remain completely free of that condition for a continuous 2-year period after your policy begins. It's simple and fast.
- Full Medical Underwriting (FMU): You complete a detailed health questionnaire. The insurer then assesses your history and states clearly from the start what is and isn't covered. This provides certainty but can take longer. Sometimes, FMU can be cheaper if your medical history is clean, as the insurer has a clearer picture of the risk.
6. Review Your Policy Annually with a Broker
Your renewal premium will almost always be higher than the previous year due to your age increase and medical inflation (the rising cost of treatments). Never simply auto-renew without checking the market.
An independent broker like WeCovr can conduct a full market review for you at renewal, free of charge. We can often find an identical or better policy with a different insurer for a lower price, or negotiate with your current provider on your behalf.
7. Pay Annually Instead of Monthly
If you can afford to pay for your policy in one go, you will save money. Most insurers add an administrative or interest charge for spreading the cost over 12 monthly direct debits. Paying annually can save you between 5% and 10% of the total premium.
8. Add a Co-payment Clause
A co-payment option is a more advanced cost-sharing feature. With this, you agree to pay a percentage (e.g., 25%) of every claim, often up to a capped amount per year, in addition to your excess. This transfers more of the risk to you but can result in very significant premium reductions. It is best suited for those on a tight budget who are comfortable with the potential for higher out-of-pocket costs.
9. Build and Protect Your No Claims Discount (NCD)
Similar to car insurance, most PMI policies feature a No Claims Discount. For every year you don't claim, your discount level increases, up to a maximum (typically 65-75%). This can make a huge difference to your long-term costs. Some insurers also offer an option to "protect" your NCD for an additional fee.
10. Look for 'Guided' or 'Expert Select' Options
A modern innovation offered by providers like Aviva, Bupa, and AXA Health. With a "guided" option, you give the insurer more control over your treatment pathway. Instead of choosing any consultant you wish, the insurer will provide a shortlist of 2-3 specialists and hospitals from their approved network. Because these specialists have been pre-vetted for quality and cost-effectiveness, the insurer passes the savings on to you in the form of a lower premium.
11. Join a Group or Company Scheme
If you run a small business (even with just 2 employees), a company health insurance policy is often significantly cheaper per person than an individual plan. The underwriting is also more favourable, and on larger schemes, it's possible to get "Medical History Disregarded" underwriting, which covers eligible pre-existing conditions.
12. Maintain a Healthy Lifestyle
This directly impacts your premium in two ways:
- Smoker Status: Declaring yourself a non-smoker (and having not used nicotine products for at least 12 months) provides an instant discount.
- Wellness Programmes: Some insurers, most notably Vitality, actively reward healthy living. By tracking your activity, eating well, and completing health checks, you can earn points that translate into significant premium discounts, cashback, and other rewards.
As a WeCovr client, you also get complimentary access to our AI-powered calorie and nutrition tracking app, CalorieHero, to support your health goals.
Comparing the Impact of Different Cost-Saving Options
This table summarises the most effective strategies and their trade-offs.
| Cost-Saving Tactic | Potential Premium Reduction | Key Consideration / Risk |
|---|---|---|
| Increase Excess to £500 | 15-25% | You must be able to pay £500 if you make a claim. |
| Add a Six-Week Option | 20-30% | You will use the NHS if its wait time is under six weeks. |
| Select a Limited Hospital List | 10-20% | Your choice of hospitals is restricted. Check your local options. |
| Cap Outpatient Cover at £1,000 | 15-25% | You pay for diagnostic costs that exceed the annual limit. |
| Choose a 'Guided' Option | 15-20% | You have less choice over the specialist who treats you. |
A Critical Note: What UK Private Health Insurance Does Not Cover
It is vital to understand the limitations of private medical insurance to avoid disappointment at the point of claim. UK PMI is designed for a specific purpose.
- Chronic Conditions are NOT Covered: PMI is designed to treat acute conditions—illnesses that are short-term and curable (like a cataract, joint problem, or cancer). It does not cover the management of long-term, incurable chronic conditions such as diabetes, asthma, hypertension, or multiple sclerosis. The NHS remains responsible for chronic care.
- Pre-existing Conditions are NOT Covered: Any medical condition for which you have experienced symptoms or sought advice in the 5 years before your policy starts will be excluded, at least initially.
- Other Common Exclusions: Standard policies also typically exclude routine pregnancy/childbirth, cosmetic surgery (unless reconstructive), emergency services (A&E), drug and alcohol rehabilitation, and self-inflicted injuries.
How WeCovr Helps You Find Affordable Cover
Navigating the complexities of the private health insurance market alone can be daunting. As an independent, FCA-regulated broker, WeCovr acts as your expert advocate. Our service is completely free to you.
Here's how we help:
- Whole-of-Market Comparison: We compare policies from all leading UK insurers, not just one or two.
- Expert Advice: We don't just find the cheapest price; we explain the differences in cover, helping you find the best value.
- Tailored Policies: We use the cost-saving strategies in this guide to build a policy that fits your exact budget and needs.
- Application & Claims Support: We assist with all the paperwork and can even provide guidance if you ever need to make a claim.
- Exclusive Benefits: WeCovr clients get discounts on other insurance products, like life or income protection insurance, and free access to our CalorieHero wellness app.
Our high customer satisfaction ratings are built on providing clear, honest advice that puts your needs first.
Frequently Asked Questions (FAQs)
Is it cheaper to get health insurance through a broker?
Can I switch my private health insurance provider to save money?
What is the cheapest private medical insurance in the UK?
Does my age heavily affect my PMI premium?
Affordable private health insurance is not a myth. It is about making smart, informed choices. By understanding the policy options and working with an expert adviser, you can design a plan that delivers fast access to healthcare without breaking the bank.
Ready to see how much you could save?
Contact WeCovr today for a free, no-obligation quote. Our friendly experts will compare the UK's leading insurers and build a personalised policy that fits your budget.
