Calculate Health Insurance UK Switch & Save Scenarios
At WeCovr, an FCA-authorised broker that has helped arrange over 900,000 policies, we specialise in helping UK consumers find the right private medical insurance. This guide demystifies the process of switching your health insurance provider, modelling real-world scenarios to show you how you can potentially save hundreds, or even thousands, of pounds.
Model potential savings when switching insurer with CPMEMHD underwriting
Switching your private medical insurance (PMI) provider is one of the most effective ways to manage your annual premium costs. However, the process can seem daunting, especially when faced with industry jargon like 'underwriting'. In simple terms, underwriting is how an insurer assesses your medical history to decide what they will and won't cover.
When you switch, there are two main methods used to handle your medical history:
- Continued Personal Medical Exclusions (CPME): This method allows you to carry your existing cover level and exclusions to a new insurer, ensuring continuity for conditions that have arisen while you were insured.
- New Moratorium Underwriting: This involves starting afresh with a new insurer. Any medical conditions you've experienced in the last five years will be excluded, typically for the first two years of the new policy.
Understanding the difference between these is the key to switching successfully and securing potential savings without sacrificing vital cover. The term 'MHD' (Medical History Disregarded) is typically reserved for large company schemes and isn't usually an option for individual switchers, who will choose between CPME or a new moratorium.
Throughout this guide, we'll break down these options with clear examples and show you how to calculate your potential savings.
Understanding Why Your Health Insurance Premiums Increase
Before we explore how to save, it's important to understand why your renewal quote is often higher than last year's premium. It’s rarely a reflection of your personal health alone; several market-wide factors are at play.
- Your Age: This is the most significant factor. As we get older, the statistical likelihood of needing medical treatment increases. Insurers adjust premiums annually based on age bands, so you will always see an age-related price rise.
- Medical Inflation: The cost of private healthcare consistently outpaces standard inflation. According to industry analysis, medical inflation in the UK often runs between 8% and 12% per year. This is driven by the rising cost of new drugs, advanced scanning technology, and specialist consultant fees.
- Your Claims History: If you have made a claim on your policy, your insurer may increase your premium at renewal. This is because your claims history suggests a higher likelihood of future claims. Insurers often remove any introductory discounts you may have had.
- Introductory Discounts: Many insurers attract new customers with significant discounts for the first year. These discounts are often removed at your first or second renewal, leading to a sharp jump in your premium, even if you haven't claimed.
This combination of factors means that staying with the same insurer year after year can lead to your premium becoming uncompetitive. The insurer is banking on the fact that you will favour loyalty over shopping around.
The Core Concept: Switching Your Private Medical Insurance
In the UK private medical insurance market, loyalty rarely translates into better value. The most competitive premiums are almost always reserved for new customers. This is why actively reviewing your cover and seeking alternative quotes before your renewal date is crucial.
Switching allows you to take advantage of another insurer's introductory offers while potentially finding a policy that better suits your current needs. However, it's not as simple as just picking the cheapest price. The most critical consideration is how your medical history is treated.
A Fundamental Rule of UK PMI
It is vital to remember a core principle of private medical insurance in the UK: policies are designed to cover acute conditions that arise after you take out the policy.
- An acute condition is a disease, illness, or injury that is likely to respond quickly to treatment and lead to a full recovery (e.g., joint replacement, cataract surgery, hernia repair).
- A chronic condition is a disease, illness, or injury that has one or more of the following characteristics: it needs ongoing or long-term monitoring, requires palliative care, has no known cure, or is likely to recur (e.g., diabetes, asthma, high blood pressure).
Standard PMI policies do not cover the treatment of chronic conditions or pre-existing conditions you had before your policy began. The goal of a strategic switch is to maintain cover for any new acute conditions you may have developed while insured, without leaving yourself exposed.
Deep Dive into Switching Underwriting: CPME vs. New Moratorium
Choosing the right underwriting method is the most important decision you'll make when switching. It determines what is and isn't covered by your new policy. An expert PMI broker like WeCovr can provide personalised guidance on which path is right for you.
Continued Personal Medical Exclusions (CPME)
Often called 'switch' underwriting, CPME is designed for people who have existing health insurance and want to move to a new provider without losing cover for conditions that have developed while they've been insured.
How it works: Your new insurer agrees to take on the same underwriting terms as your old policy. They don't reassess your medical history from scratch. Instead, any personal medical exclusions on your current policy are simply carried over to the new one. This means if a new condition (e.g., back pain) arose and was covered under your old policy, it will continue to be covered by your new one.
Who it's for: CPME is ideal for individuals or families who have:
- Developed new medical conditions since taking out their original policy.
- Made claims in the past.
- A complex medical history they want to ensure remains covered.
Pros of CPME:
- Continuity of Cover: Provides peace of mind that you won't lose cover for recent medical issues.
- No New Waiting Periods: You don't have to go through a new two-year moratorium period for conditions that were already covered.
- Access to New Benefits: You can switch to an insurer with better benefits or a more suitable hospital list while protecting your underwriting.
Cons of CPME:
- Stricter Criteria: Not everyone is eligible. Insurers will want to see your current policy documents and may decline a switch if you are currently undergoing treatment or have recently claimed for a serious condition like cancer.
- Slightly Higher Premiums: A CPME switch can sometimes be slightly more expensive than a new moratorium policy, but it is often still far cheaper than your renewal quote.
New Moratorium Underwriting
This is the most common type of underwriting for new customers and can also be used when switching if you are in good health.
How it works: You start a new policy with a standard moratorium. This means any medical condition for which you have had symptoms, treatment, medication, or advice in the five years before the policy starts will be excluded from cover.
However, this exclusion can be lifted. If you go for two continuous years on your new policy without needing treatment, medication, or advice for that specific condition, it may become eligible for cover.
Who it's for: A new moratorium switch is best for individuals or families who:
- Are in good health.
- Have not seen a doctor or received treatment for any significant condition in the last five years.
- Have not made any claims on their current PMI policy.
Pros of New Moratorium:
- Potentially the Lowest Cost: Because the insurer is taking on less risk initially, premiums are often the most competitive.
- Simple Application: The process is straightforward as you don't need to declare your full medical history upfront.
Cons of New Moratorium:
- Risk of Losing Cover: You lose the continuous cover you had with your previous insurer. Any conditions that arose during your old policy will now be subject to the new moratorium rules.
- The "Two-Year Wait": You face a waiting period before older conditions can be covered, and there's no guarantee they will be.
Comparison Table: CPME vs. New Moratorium
| Feature | Continued Personal Medical Exclusions (CPME) | New Moratorium Underwriting |
|---|---|---|
| How it Works | New insurer inherits the exclusions of your old policy. | Starts a fresh 5-year lookback and 2-year waiting period for pre-existing conditions. |
| Best For | People with recent claims or new conditions they want to keep covered. | Healthy individuals with no medical issues or claims in the past 5 years. |
| Conditions on Old Policy | Cover is continued seamlessly for eligible acute conditions. | These become pre-existing and are excluded for at least two years. |
| Application Process | More detailed. Requires your current policy certificate and claims history. | Very simple. No medical declaration is usually needed. |
| Potential Cost | Often cheaper than renewal, but may be slightly more than a new moratorium policy. | Usually the cheapest available premium for a new policy. |
| Peace of Mind | High. You know exactly what is and isn't covered from day one. | Lower. There can be uncertainty about what constitutes a "pre-existing" condition. |
Calculating Your Potential Savings: Real-Life Scenarios
Let's model how these switching strategies can translate into real-world savings. The premiums below are illustrative examples for 2025, but they reflect the typical savings our clients at WeCovr achieve.
Scenario 1: The Healthy Switcher - "The Kumar Family"
- Profile: A family of four. David (45), Priya (43), and two children (10, 12). They are all in good health and have made no claims on their PMI policy in the last five years.
- Current Policy: A mid-range policy with a major insurer.
- Current Annual Premium: £2,400 (£200/month).
- Renewal Quote: £2,880 (£240/month) – a 20% increase.
- Recommended Switch Method: New Moratorium Underwriting. Since the family is healthy and has no recent medical history to protect, they can switch to a new insurer on a moratorium basis to get the best price.
- Action: They contact WeCovr. We compare the market and find a comparable policy with another leading insurer that is keen to attract new family customers.
- New Policy Premium: £2,100 (£175/month).
Savings Calculation:
| Description | Annual Cost |
|---|---|
| Renewal Quote | £2,880 |
| New Policy via WeCovr | £2,100 |
| Annual Saving | £780 |
| Monthly Saving | £65 |
Analysis: By switching, the Kumar family saved £780 a year and avoided the steep renewal increase. Because they used a new moratorium, the process was quick and simple.
Scenario 2: The Switcher with a Recent Condition - "Susan"
- Profile: Susan is a 58-year-old marketing director. Eighteen months ago, she had private treatment for a torn meniscus in her knee, which was covered by her PMI. She has recovered well but wants to ensure her knee is covered for any future issues.
- Current Policy: A comprehensive policy with full outpatient cover.
- Current Annual Premium: £1,800 (£150/month).
- Renewal Quote: £2,280 (£190/month) – a 27% increase, partly due to her claim.
- Recommended Switch Method: Continued Personal Medical Exclusions (CPME). If Susan switched on a new moratorium basis, her knee would be excluded as a pre-existing condition. CPME is essential to maintain her cover.
- Action: Susan uses a broker to find an insurer that offers CPME and has a strong reputation for orthopaedic claims. The broker finds a policy with the same level of cover.
- New Policy Premium: £1,920 (£160/month).
Savings Calculation:
| Description | Annual Cost |
|---|---|
| Renewal Quote | £2,280 |
| New Policy via WeCovr (CPME) | £1,920 |
| Annual Saving | £360 |
| Monthly Saving | £30 |
Analysis: Although her saving is more modest than the Kumar family's, Susan's switch is a huge success. She saved £360 per year while, crucially, protecting her cover for any future problems with her knee. Without expert advice, she might have chosen a cheaper moratorium policy and been left uninsured for a key health concern.
How a PMI Broker Like WeCovr Maximises Your Savings
Navigating the complexities of underwriting and comparing dozens of policies is time-consuming and difficult. This is where an independent, FCA-authorised broker like WeCovr provides immense value.
- Whole-of-Market Access: We are not tied to any single insurer. We have access to policies and pricing from across the UK's private health insurance market, ensuring you see the full range of options available.
- Expertise in Underwriting: Our advisors live and breathe this subject. They will quickly assess your personal situation and recommend the best switching strategy—be it CPME or a new moratorium—to meet your specific needs and budget. We know the exact criteria each insurer has for a CPME switch.
- It Costs You Nothing: Our advisory service is completely free for you to use. We are paid a commission by the insurer you choose, which is already built into the premium. You get expert, impartial advice without paying a penny extra.
- Personalised Recommendations: We don't just find the cheapest quote. We take the time to understand what's important to you—be it a specific hospital, mental health support, or comprehensive cancer care—and find a policy that truly fits your life.
Beyond Premiums: Other Ways to Manage Your PMI Costs
Switching insurer is powerful, but you can also tailor the structure of your policy to make it more affordable. When we search for a policy for you, we can model the price based on these options:
- Increase Your Excess: The excess is the amount you agree to pay towards the cost of a claim. For example, if you have a £250 excess and your treatment costs £3,000, you pay the first £250 and the insurer pays the rest. Increasing your excess from £100 to £500 can reduce your premium by 15-25%.
- Choose a Tailored Hospital List: Insurers offer different tiers of hospital lists. A policy covering only local hospitals will be much cheaper than one giving you access to premium central London hospitals. If you are happy to be treated locally, this is a great way to save.
- Opt for the "6-Week Wait" Option: This is a fantastic cost-saving feature. With this option, if you need treatment, you will first see if the NHS can provide it within six weeks. If they can, you use the NHS. If the waiting list is longer than six weeks, your private cover kicks in immediately. This option can lower your premium by up to 30%.
- Review Your Outpatient Cover: Outpatient cover pays for consultations and diagnostics that don't require a hospital bed. While full outpatient cover is comprehensive, you can choose to limit it (e.g., to £1,000 per year) or remove it entirely to significantly reduce your premium.
The WeCovr Advantage: More Than Just Insurance
We believe in a holistic approach to your health and wellbeing. When you arrange your private medical insurance through WeCovr, you get more than just a policy; you get a partner in your health journey.
- Complimentary Access to CalorieHero: All our health and life insurance clients receive free access to our AI-powered calorie and nutrition tracking app, CalorieHero. Managing your diet is a cornerstone of good health, and this tool makes it easy and intuitive to stay on track.
- Discounts on Other Protection: We value your loyalty. Clients who take out private medical insurance or life insurance with us are eligible for exclusive discounts on other policies, such as income protection or critical illness cover, helping you build a complete financial safety net for less.
- Trusted Service: Our clients consistently give us high satisfaction ratings on independent review platforms. This reflects our commitment to clear, friendly, and expert advice that puts your needs first.
Wellness & Lifestyle: Proactively Managing Your Health & Premiums
While insurance is there for when things go wrong, the best strategy is to proactively manage your health. A healthier lifestyle can reduce your long-term risk of needing treatment and, in turn, help moderate future premium increases. Insurers are also increasingly offering rewards and discounts for customers who engage with wellness programmes.
- A Balanced Diet: Focus on a diet rich in whole foods. The NHS Eatwell Guide is an excellent resource, recommending a balance of fruits and vegetables, starchy foods like potatoes and pasta, proteins like beans and fish, and dairy or alternatives.
- Regular Physical Activity: The UK's Chief Medical Officers recommend adults get at least 150 minutes of moderate-intensity activity (like brisk walking or cycling) or 75 minutes of vigorous-intensity activity (like running or tennis) each week. This helps maintain a healthy weight and reduces the risk of many chronic illnesses.
- Prioritise Sleep: Aim for 7-9 hours of quality sleep per night. Good sleep is essential for your immune system, mental clarity, and physical recovery.
- Look After Your Mental Health: Stress and anxiety can have a significant physical impact. Most modern PMI policies include excellent cover for mental health support, from therapy sessions to access to mindfulness apps. Don't be afraid to use these valuable benefits.
By investing in your wellbeing, you not only improve your quality of life but also become a lower-risk customer for insurers, which can only be a good thing for your premiums in the long run.
Do I need to declare every single cold or minor ailment when switching health insurance?
What happens if I switch on a new moratorium basis and need treatment for an old condition?
Can I switch my private medical insurance if I am currently undergoing treatment?
Is it always cheaper to switch my private health cover?
Ready to see how much you could save? The process is simpler than you think. Let our expert team do the hard work for you.
Related guides
Why private medical insurance and how does it work?
What is Private Medical Insurance?
Private medical insurance (PMI) is a type of health insurance that provides access to private healthcare services in the UK. It covers the cost of private medical treatment, allowing you to bypass NHS waiting lists and receive faster, more convenient care.How does it work?
Private medical insurance works by paying for your private healthcare costs. When you need treatment, you can choose to go private and your insurance will cover the costs, subject to your policy terms and conditions. This can include:• Private consultations with specialists
• Private hospital treatment and surgery
• Diagnostic tests and scans
• Physiotherapy and rehabilitation
• Mental health treatment
Your premium depends on factors like your age, health, occupation, and the level of cover you choose. Most policies offer different levels of cover, from basic to comprehensive, allowing you to tailor the policy to your needs and budget.
Questions to ask yourself regarding private medical insurance
Just ask yourself:👉 Are you concerned about NHS waiting times for treatment?
👉 Would you prefer to choose your own consultant and hospital?
👉 Do you want faster access to diagnostic tests and scans?
👉 Would you like private hospital accommodation and better food?
👉 Do you want to avoid the stress of NHS waiting lists?
Many people don't realise that private medical insurance is more affordable than they think, especially when you consider the value of faster treatment and better facilities. A great insurance policy can provide peace of mind and ensure you receive the care you need when you need it.
Benefits offered by private medical insurance
Private medical insurance provides numerous benefits that can significantly improve your healthcare experience and outcomes:Faster Access to Treatment
One of the biggest advantages is avoiding NHS waiting lists. While the NHS provides excellent care, waiting times can be lengthy. With private medical insurance, you can often receive treatment within days or weeks rather than months.
Choice of Consultant and Hospital
You can choose your preferred consultant and hospital, giving you more control over your healthcare journey. This is particularly important for complex treatments where you want a specific specialist.
Better Facilities and Accommodation
Private hospitals typically offer superior facilities, including private rooms, better food, and more comfortable surroundings. This can make your recovery more pleasant and potentially faster.
Advanced Treatments
Private medical insurance often covers treatments and medications not available on the NHS, giving you access to the latest medical advances and technologies.
Mental Health Support
Many policies include comprehensive mental health coverage, providing faster access to therapy and psychiatric care when needed.
Tax Benefits for Business Owners
If you're self-employed or a business owner, private medical insurance premiums can be tax-deductible, making it a cost-effective way to protect your health and your business.
Peace of Mind
Knowing you have access to private healthcare when you need it provides invaluable peace of mind, especially for those with ongoing health conditions or concerns about NHS capacity.
Private medical insurance is particularly valuable for those who want to take control of their healthcare journey and ensure they receive the best possible treatment when they need it most.
Important Fact!
We can look at a more suitable option mid-term!
Why is it important to get private medical insurance early?
👉 Many people are very thankful that they had their private medical insurance cover in place before running into some serious health issues. Private medical insurance is as important as life insurance for protecting your family's finances.👉 We insure our cars, houses, and even our phones! Yet our health is the most precious thing we have.
Easily one of the most important insurance purchases an individual or family can make in their lifetime, the decision to buy private medical insurance can be made much simpler with the help of FCA-authorised advisers. They are the specialists who do the searching and analysis helping people choose between various types of private medical insurance policies available in the market, including different levels of cover and policy types most suitable to the client's individual circumstances.
It certainly won't do any harm if you speak with one of our experienced insurance experts who are passionate about advising people on financial matters related to private medical insurance and are keen to provide you with a free consultation.
You can discuss with them in detail what affordable private medical insurance plan for the necessary peace of mind they would recommend! WeCovr works with some of the best advisers in the market.
By tapping the button below, you can book a free call with them in less than 30 seconds right now:
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Who Are WeCovr?
WeCovr is an insurance specialist for people valuing their peace of mind and a great service.👍 WeCovr will help you get your private medical insurance, life insurance, critical illness insurance and others in no time thanks to our wonderful super-friendly experts ready to assist you every step of the way.
Just a quick and simple form and an easy conversation with one of our experts and your valuable insurance policy is in place for that needed peace of mind!