How a London Family Saved £2,300 by Switching PMI with WeCovr
As an FCA-authorised UK expert that has helped arrange over 800,000 policies, WeCovr understands private medical insurance inside and out. In a time of rising costs, many families believe they must either cancel their valuable health cover or accept huge price hikes. This real-life case study proves there is a smarter way.
WeCovr shares a real case study of a family cutting costs with smarter cover
Meet the Davies family from Clapham, South London: Mark, a 45-year-old project manager, Sarah, a 43-year-old part-time graphic designer, and their two children, Emily (15) and Leo (12).
For five years, they'd held a comprehensive private medical insurance (PMI) policy with a well-known insurer. They valued the peace of mind it brought, knowing they could bypass long waiting lists for eligible conditions. They were a healthy family and had never made a claim.
The problem arrived with their annual renewal letter. Their premium was set to jump from £350 to over £450 per month, an annual cost of £5,400. It was a classic case of the "loyalty penalty," where premiums creep up year after year, often far beyond the rate of inflation.
Facing a 28% increase, the Davies family felt stuck. Cancelling their cover seemed risky, especially with NHS waiting lists remaining a national concern. But could they justify such a high cost? Before making a decision, Mark reached out to WeCovr for a free, no-obligation market review.
Our goal was simple: to see if we could find them equivalent or better cover at a more sustainable price. The result? We found a tailored policy that met all their needs and saved them an incredible £2,304 a year.
This article breaks down exactly how we did it, step by step.
Understanding Why Your PMI Premium Increases Every Year
Before we dive into the solution, it's vital to understand why the Davies's premium increased so sharply. It's a question we hear every day. Several factors are at play, and they affect almost every PMI policyholder in the UK.
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Age is the Biggest Factor: This is the most significant driver of premium costs. As we get older, the statistical likelihood of needing medical treatment increases. Insurers adjust their prices accordingly, with premiums typically rising more steeply after the age of 40.
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Medical Inflation: The cost of private healthcare—from new cancer drugs and advanced scanning technology to consultant fees and hospital overheads—rises much faster than general inflation. In 2024-2025, medical inflation is estimated to be running at between 8% and 12%, a cost that insurers pass on to customers.
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Claims History (Yours and Others'): While the Davies family hadn't claimed, their renewal premium is also affected by the claims made by other customers in their insurer's "pool." If the insurer has paid out a lot for a specific age group or on a particular type of plan, everyone on that plan may see a price rise.
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Insurance Premium Tax (IPT): This is a government tax on all general insurance policies, including PMI. It currently stands at a standard rate of 12% and is automatically included in the price you pay.
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The "Loyalty Penalty": Insurers often reserve their most competitive rates to attract new customers. Existing customers who renew without question can see their premiums rise year after year, until they are paying far more than a new customer for the exact same cover. This is why a regular market review is so essential.
| Reason for Increase | Typical Annual Impact | Description |
|---|---|---|
| Ageing | 3-8% | The risk of illness increases as you get older. |
| Medical Inflation | 8-12% | Rising costs of technology, drugs, and expertise. |
| Claims Pool | 1-5% | Cost of claims made by other customers on similar plans. |
| IPT | 12% (Fixed) | Standard rate of government tax on your premium. |
Understanding these factors empowers you. It shows that your rising premium isn't personal; it's a market dynamic. And like any market, you can shop around for a better deal.
The WeCovr Review Process: How We Uncovered £2,300 in Savings
Our process is built on expertise and a deep understanding of the UK private health cover market. We don't use a simple price comparison tool; we conduct a thorough, personalised review. Here’s how we helped the Davies family.
Step 1: The Initial Consultation
An expert WeCovr adviser had a friendly, informal chat with Mark. The goal wasn't to sell, but to listen. We asked key questions to understand what truly mattered to his family:
- What are your non-negotiables? For the Davies family, comprehensive cancer care and fast access to diagnostic scans were top priorities.
- What is your ideal monthly budget? They were hoping to get back to around £250-£300 per month.
- Do you have any preferred hospitals? They had no specific preferences, as long as the hospitals were reputable and reasonably close to their South London home.
- How do you feel about contributing to the cost of your care? This opened the discussion about excesses.
Step 2: Analysing the Existing Policy
We asked Mark to send us his renewal documents. A quick analysis revealed why their premium was so high:
- Zero Excess: They were paying a huge amount extra to have no contribution towards a claim.
- Full Outpatient Cover: The policy covered every single consultation and test, no matter how small. This is the most expensive level of outpatient cover.
- Premium Central London Hospital List: Their policy included the most expensive HCA hospitals in Central London (e.g., The Lister, The London Clinic), which added a significant premium. Living in Clapham, they were unlikely to use them for routine care.
Essentially, they had a "gold-plated" policy with features they didn't need and weren't using, and they were paying a premium for it.
Step 3: Comparing the Market with Expert Knowledge
Armed with this information, we did what we do best: we scoured the market. As an independent PMI broker, WeCovr has access to policies and rates from all the UK's leading insurers, including Aviva, AXA Health, Bupa, The Exeter, and Vitality.
We filtered the options based on the Davies's core needs: robust cancer cover, good mental health support, and quick diagnostics. We then looked for ways to build a smarter policy, not just a cheaper one.
Step 4: Presenting Tailored, Easy-to-Understand Options
We went back to the Davies family with three clear choices, explaining the pros and cons of each in plain English.
- Tweak the Existing Policy: We showed them how adding an excess and reducing their hospital list with their current insurer would save them around £80 per month. A decent saving, but we knew we could do better.
- Switch to a New Provider (Like-for-Like Cover): We found a policy with another major provider that mirrored their existing high-spec cover but for £120 less per month, simply by virtue of a new customer discount.
- The Recommended Option: Switch to a Smarter, Tailored Policy: This was the game-changer. We constructed a new policy that kept their core protections but removed the expensive, unnecessary extras. This option offered the most significant savings while still delivering fantastic cover.
The Davies family chose Option 3.
The Smart Switches That Slashed the Davies's Premium
This is the heart of how we saved the family over £2,300. By making three intelligent adjustments, we built a policy that was perfectly suited to their real-world needs and budget.
1. Introducing a Sensible Excess
An excess is the amount you agree to pay towards a claim in any policy year. It's one of the simplest and most effective ways to reduce your premium.
- Their Old Policy: £0 excess. This meant the insurer was on the hook for every single pound of any claim, which is why the premium was so high.
- Our Recommendation: A £250 excess per person, per year.
- The Impact: This single change reduced the family's premium by approximately 20%. For the Davies family, it was a logical trade-off. They were happy to pay the first £250 of a claim in a year if it meant saving over £1,000 annually on their premium. Most people don't claim every year, so the saving is immediate.
2. Refining the Hospital List
Not all private hospitals cost the same. Insurers group hospitals into lists or tiers, and the more expensive the hospitals on your list, the higher your premium.
- Their Old Policy: Included a list of the most expensive private hospitals in Central London. While these are excellent facilities, they come with a hefty price tag.
- Our Recommendation: Switch to a comprehensive nationwide hospital list from a different provider. This list still included dozens of high-quality private hospitals in and around London (like those run by Spire, Nuffield Health, and Circle Health), but excluded the small number of very high-cost facilities in Marylebone and Chelsea.
- The Impact: This saved the family a further 15% on their premium without any meaningful reduction in the quality of care available to them. For 99% of conditions, the hospitals on their new list were more than sufficient and more conveniently located.
3. Adjusting Outpatient Cover
Outpatient cover pays for services that don't require a hospital bed, such as specialist consultations, diagnostic tests, and scans (like MRIs and CTs).
- Their Old Policy: Unlimited ("full") outpatient cover. This meant they could have limitless consultations and tests, but they were paying a top-tier price for this benefit.
- Our Recommendation: A capped outpatient limit of £1,000 per person, per year.
- The Impact: This provided the perfect balance. A £1,000 limit is more than enough to cover the initial diagnostic phase for most serious conditions (e.g., a specialist consultation and an MRI scan). Once a diagnosis is made and inpatient treatment is needed, the core part of the policy kicks in with no limit. This change saved them another 20-25%. They still had the peace of mind of fast diagnostics, but weren't paying for a limitless benefit they'd never use.
The Final Result: A Detailed Cost Breakdown
The table below shows the dramatic difference these smart switches made.
| Feature | Old Policy (Previous Insurer) | New Policy (via WeCovr) |
|---|---|---|
| Provider | Major UK Insurer | A Different Major UK Insurer |
| Monthly Premium | £450 | £258 |
| Annual Premium | £5,400 | £3,096 |
| Annual Saving | - | £2,304 |
| Excess | £0 | £250 per person per year |
| Hospital List | Premium Central London | Comprehensive Nationwide |
| Outpatient Cover | Unlimited | Capped at £1,000 per person/year |
| Underwriting | Renewal | Moratorium |
| Key Benefits Kept | Full Cancer Cover, Mental Health Support | Full Cancer Cover, Mental Health Support |
By working with a WeCovr adviser, the Davies family not only saved a huge amount of money but also ended up with a policy that was better aligned with their actual needs. They kept the crucial cover for serious illnesses like cancer while trimming the fat from their plan.
The WeCovr Difference: More Than Just a Price Comparison
Saving money is a fantastic outcome, but our clients, who consistently give us high satisfaction ratings on review platforms, tell us the value we provide goes much deeper. Working with a specialist PMI broker like WeCovr offers benefits you simply don't get when going direct.
- Expert Guidance at No Cost: Our service is completely free to you. We earn a commission from the insurer you choose, which is already built into the overall policy price. This means you get expert, impartial advice without paying a penny extra. In fact, our market knowledge often means we can find you a cheaper deal than you'd find on your own.
- Navigating the Jargon: We translate complex insurance terms into plain English. We'll clearly explain the difference between moratorium and full medical underwriting, or what a "guided option" really means for your choice of consultant.
- Handling the Switch: We manage the application process for you, ensuring all the paperwork is correct. For customers with existing conditions, we can arrange a special "Continued Personal Medical Exclusions" (CPME) switch, which is vital for maintaining cover and something that is very difficult to arrange alone.
- Annual Review Service: Our relationship doesn't end once the policy is set up. We'll contact you before your next renewal to re-assess your needs and check the market again, ensuring you never fall into the "loyalty penalty" trap.
- Exclusive Member Benefits: When you arrange a policy through WeCovr, you get more than just insurance. You'll receive complimentary access to CalorieHero, our AI-powered calorie and nutrition tracking app, to support your health goals. Furthermore, customers who take out PMI or life insurance with us are eligible for discounts on other types of cover, like income protection or home insurance.
A Critical Reminder: What UK Private Health Insurance Does and Doesn't Cover
It is our responsibility as FCA-authorised brokers to be crystal clear about the purpose of private medical insurance in the UK. It is an invaluable product, but it is not designed to cover everything.
What PMI is designed for: Acute Conditions
PMI is for the diagnosis and treatment of acute conditions that arise after your policy begins.
An acute condition is a disease, illness, or injury that is likely to respond quickly to treatment and lead to a full recovery, restoring you to your previous state of health. Examples include:
- Joint pain requiring a hip or knee replacement
- Cataracts
- Hernias
- Most forms of cancer
- Gallstones
What PMI is NOT designed for:
Understanding the standard exclusions is key to having the right expectations.
- Chronic Conditions: PMI does not cover the routine management of long-term conditions that cannot be "cured," only managed. You will still rely on the NHS for this. Examples include:
- Diabetes
- Asthma
- High blood pressure
- Crohn's disease
- Eczema
- Pre-existing Conditions: Standard policies will not cover you for medical conditions you had symptoms of, or received advice or treatment for, in the 5 years before your policy started. This is why it's so important to get advice on switching underwriting types if you have a condition that is currently covered on an existing policy.
- Other Standard Exclusions: These typically include A&E/emergency services, normal pregnancy and childbirth, cosmetic surgery, organ transplants, and self-inflicted injuries.
Your policy documents will always provide a full list of what is and isn't covered. Our job is to make sure you understand it fully before you buy.
Beyond Insurance: Proactive Steps to a Healthier Family Life
While insurance provides a safety net, the best strategy is always to invest in your family's day-to-day health. Many PMI providers, like Vitality, actively reward healthy habits with discounts and perks. Here are some tips for a healthier, happier family life.
- Nourish to Flourish: A balanced diet is the cornerstone of good health. Try to involve the children in meal planning and cooking. Simple swaps, like whole grains instead of white pasta and reducing sugary drinks, can make a huge difference. For parents looking to manage their own nutrition, the complimentary CalorieHero app from WeCovr can be an invaluable tool for tracking intake and making healthier choices.
- Move Together: According to the Office for National Statistics (ONS), only around 60% of adults in England meet the recommended guidelines for physical activity. Make it a family affair! Weekend park runs, cycling along London's canal paths, or joining a local tennis or badminton club are great ways to stay active together.
- Prioritise Sleep: Good quality sleep is as important as diet and exercise. Establish consistent bedtimes for the children and try to create a "digital sunset" an hour before bed, where all screens are put away to help the mind wind down.
- Open Up About Mental Health: Modern PMI policies have excellent mental health support, from therapy sessions to digital wellbeing apps. Normalise conversations about feelings and stress within the family. Knowing that professional help is readily available through your policy can be a huge comfort for both parents and teenagers.
Your Own PMI Health Check: Is It Time for You to Switch?
Do you feel like the Davies family did? If you're unsure whether you're on the right plan, ask yourself these questions:
- Has your renewal premium increased by more than 15%? If so, you are almost certainly paying too much.
- Has it been more than two years since you compared providers? The market changes constantly; a better deal is likely available.
- Have your personal circumstances changed? Perhaps your children have grown up and left home, or you've moved house and your hospital list is no longer relevant.
- Are you paying for benefits you don't actually use? Like a dental add-on or a premium hospital list.
- Do you find your policy documents confusing? An expert broker can provide clarity and confidence.
If you answered "yes" to any of these questions, it is time for a free, no-obligation review of your private health cover.
Will I have to re-serve waiting periods if I switch PMI providers?
Does using a PMI broker like WeCovr cost more than going direct to an insurer?
Can I keep my pre-existing conditions covered when I switch my private health cover?
What is the main difference between Moratorium and Full Medical Underwriting?
Take Control of Your Health and Your Finances
The Davies family's story is not unique. Thousands of families across the UK are paying too much for their private medical insurance. With expert guidance, you can secure the right protection for your family at a price that makes sense.
Don't let a renewal letter dictate your financial and healthcare choices. Let WeCovr provide you with a free, comprehensive market review and see how much you could save.
[Get Your Free, No-Obligation PMI Quote from WeCovr Today]
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!