Managing Multiple PMI Policies Is Double Cover Worth It
Are you paying for two private medical insurance policies? As FCA-authorised experts who have arranged over 900,000 policies, we at WeCovr see this often. Understanding the complexities of dual private health cover in the UK is vital to ensure you’re not wasting money or creating future claim headaches.
The rules, risks, and when to streamline or keep extra coverage
Holding more than one private medical insurance (PMI) policy might feel like you have a superior level of protection. Perhaps you have cover from your employer and have kept a personal policy "just in case." Or maybe you and your partner both have family cover through your respective jobs.
The reality, however, is often far from double the benefit. In the UK insurance market, a core principle prevents you from profiting from a claim. This means you can't claim for the full cost of the same private treatment from two different insurers.
This guide will demystify the world of multiple PMI policies. We'll explore:
- The fundamental insurance rule that governs all claims.
- The significant financial and administrative risks of double cover.
- The rare situations where holding two policies might make sense.
- A clear, step-by-step process for auditing and streamlining your cover to save money and get the protection you actually need.
Understanding Double Cover in UK Private Medical Insurance
"Double cover," also known as dual insurance, simply means you are insured for the same risk by two or more separate insurance policies. In the context of private health cover, it’s surprisingly common and usually happens in one of a few ways:
- Employer & Private Policy: You have a policy provided by your employer as a workplace benefit, but you also pay for your own private plan.
- Dual Workplace Policies: You and your partner are both enrolled in your respective company’s PMI scheme, and both policies cover the family.
- Forgetting to Cancel: You switch to a new, better policy but forget to cancel the old one, leading to an overlap where you're paying two premiums.
- Specialist & Comprehensive Cover: You have a comprehensive PMI policy but also take out a separate policy for something specific like dental or cancer care, without checking if your main policy already covers it.
Think of it like this: if a mechanic damages your car's bumper and two different insurance policies cover it, you can't get two new bumpers or twice the cash value. You can only claim for the cost of one repair. The same logic applies to your health.
The Cardinal Rule of Insurance: The Principle of Indemnity
To understand why you can't claim twice, we need to talk about a fundamental concept in insurance: the Principle of Indemnity.
In plain English, this principle states that an insurance policy should only restore you to the same financial position you were in before the loss occurred. It is designed to cover your actual losses, not to provide a windfall. You cannot make a profit from an insurance claim.
For private medical insurance, this means insurers will only ever pay the actual cost of the eligible treatment.
Example: A Knee Operation
- You need private knee surgery costing £7,000.
- You have Policy A from your employer with a £10,000 surgery limit.
- You also have Policy B, a private plan, with a £10,000 surgery limit.
You cannot claim £7,000 from Policy A and £7,000 from Policy B for a total of £14,000. You can only claim for the £7,000 bill once.
The "Contribution Clause"
So, which insurer pays? This is where it gets complicated. Most UK insurance policies contain a "Contribution Clause." If you claim from one insurer, they have the right to ask your other insurer to contribute a proportion of the cost.
This can lead to:
- Delays: The two insurance companies may need to communicate to decide how to split the bill, potentially delaying the approval for your treatment.
- Admin Hassle: You may be asked to provide details of both policies, adding another layer of complexity to your claim.
Ultimately, the insurers will sort it out between themselves, but you gain no financial advantage. You've simply paid two premiums for the right to a single payout.
The Risks and Downsides of Holding Multiple PMI Policies
For the vast majority of people, holding two overlapping PMI policies is a bad idea. The downsides significantly outweigh any perceived benefits.
1. Wasted Money
This is the most obvious and damaging risk. You are paying two sets of premiums for benefits that don't stack. Every pound spent on an overlapping policy is a pound that could be saved, invested, or used for something else.
Let's look at a typical scenario:
| Feature | Employer Policy (Basic) | Personal Policy (Mid-Tier) | The Reality of "Double Cover" |
|---|---|---|---|
| Annual Premium | £0 (paid by employer) | £1,200 | Total Cost: £1,200 (plus tax on benefit) |
| Excess | £250 | £100 | You must pay an excess. You can't use one policy to pay the other's excess. |
| Outpatient Cover Limit | £500 | £1,000 | Your limit is £1,000. For a £750 claim, you'd use the personal policy. You can't combine them for a £1,500 limit. |
| Mental Health Cover | 4 CBT sessions | 8 CBT sessions | Your benefit is 8 CBT sessions. The cover is not additive. You don't get 12 sessions. |
In this example, the individual is paying £1,200 a year for a personal policy that is largely duplicated by their work scheme. They might be better off cancelling the personal plan or asking an expert PMI broker to find a cheaper "top-up" plan that only covers what the work scheme lacks.
2. Administrative Nightmare
Managing one insurance policy can be enough work. Managing two means double the trouble:
- Two Renewal Dates: Keeping track of different renewal periods and premium increases.
- Two Sets of Paperwork: Different policy documents, terms, and conditions to read and understand.
- Two Contact Points: Different phone numbers and claims procedures to navigate when you need care.
3. A False Sense of Security
People often mistakenly believe their cover is "doubled." They might think that having two policies with a £500 outpatient limit gives them a £1,000 pot to draw from. As we've seen, this is incorrect. This misunderstanding can lead to disappointment and frustration when a claim is made and the reality of the contribution clause becomes clear.
4. Critical Risk: Pre-Existing and Chronic Conditions
This is arguably the most dangerous pitfall. Standard UK private medical insurance is designed to cover acute conditions that arise after you take out the policy. It does not cover pre-existing conditions (ailments you already had or had symptoms of) or chronic conditions (illnesses that need long-term management, like diabetes or asthma).
When you switch or add policies, you risk disrupting your continuity of cover.
- Moratorium Underwriting: Many policies are sold on a "moratorium" basis. This means the insurer won't cover any condition you've had symptoms of, or received treatment for, in the five years before the policy started. If you go two full years on the policy without any issues relating to that condition, it may then become eligible for cover.
- The Danger of Switching: If you cancel a policy you've held for 10 years and start a new one, any condition that developed during those 10 years (e.g., joint pain, a heart flutter) will now be considered a pre-existing condition by the new insurer and will be excluded. You could inadvertently lose cover you had earned over many years.
This is why you should never cancel an existing PMI policy without first seeking expert advice from a qualified PMI broker.
Are There Any Scenarios Where Double Cover Is Worth It?
While generally inadvisable, there are a few niche situations where having more than one policy can be a calculated, strategic decision. This is about having complementary cover, not overlapping cover.
Scenario 1: Topping Up a Basic Policy
Your employer's PMI policy might be very basic. It could have:
- A very high excess (e.g., £1,000).
- A low outpatient limit (£250 or none at all).
- A restricted hospital list that excludes convenient local facilities.
- No cover for therapies like physiotherapy or mental health support.
In this case, it might be cost-effective to purchase a separate, low-cost policy that is specifically designed to fill these gaps. For example, you could buy a plan that focuses solely on providing comprehensive outpatient diagnostics and therapies. This complements your inpatient-focused work scheme.
Scenario 2: Health Cash Plans vs. PMI
This isn't strictly "double cover," as a health cash plan is a different type of product.
- PMI pays the actual cost of private treatment (up to your policy limits).
- A Health Cash Plan gives you a fixed amount of money back for certain routine healthcare expenses, like dental check-ups, eye tests, or prescription charges.
You can claim from a cash plan and use your PMI. For example, you could use your PMI for private surgery and then claim on your cash plan for the cost of post-operative physiotherapy sessions. Many find this a useful combination.
Scenario 3: Navigating a Policy Switch
A brief period of double cover (a week or two) can be sensible when moving from one PMI provider to another. This ensures your new policy is fully active and all paperwork is confirmed before you cancel the old one, preventing any accidental gaps in your protection. This is a temporary transition tactic, not a long-term strategy.
An expert broker like WeCovr can analyse your existing policies and advise if a top-up strategy is more cost-effective than consolidating into a single, more comprehensive plan.
How to Streamline and Optimise Your Private Health Cover
If you suspect you have unnecessary double cover, it’s time for a health insurance audit. Following these steps will bring clarity and potentially save you hundreds or even thousands of pounds a year.
Step 1: Gather Your Policy Documents
Find the latest policy documents for all health-related insurance you hold. This includes any workplace PMI, private plans, and health cash plans.
Step 2: Create a Comparison Table
Don't just skim the documents. Create a simple table to compare the key features side-by-side. This will instantly highlight where you are duplicating cover.
| Feature | Your Policy 1 (e.g., Employer) | Your Policy 2 (e.g., Private) | Notes & Overlaps |
|---|---|---|---|
| Annual Premium | |||
| Underwriting Type | (e.g., Moratorium) | (e.g., FMU) | Crucial for switching decisions |
| Excess Amount | |||
| Hospital List | Are they the same? | ||
| Inpatient Cover | (e.g., Full Cover) | (e.g., Full Cover) | Clear overlap |
| Outpatient Limit | |||
| Cancer Cover | Check for limits/add-ons | ||
| Mental Health Cover | |||
| Therapies Cover | (Physio, Osteo, etc.) |
Step 3: Identify Your "Master" Policy
Review your comparison. Which policy offers the best overall value? Look for the one with:
- The most comprehensive cover (especially for cancer and outpatients).
- The hospital list that best suits your needs.
- The underwriting terms that protect you most (especially if it's a long-held policy).
This will likely be the policy you want to keep. The other is a candidate for cancellation or downgrading.
Step 4: Speak to an Independent PMI Broker
This is the most important step. Do not cancel anything yet. The risks of losing cover for pre-existing conditions are too high to go it alone.
An independent, FCA-authorised broker like WeCovr can:
- Perform a free market review: They will compare your existing policies against the entire UK market to see if a better, single policy exists.
- Advise on switching: They understand the complexities of underwriting and can guide you on the safest way to switch providers without losing valuable cover.
- Negotiate on your behalf: They have established relationships with the best PMI providers and can often find deals not available to the public.
- Save you time and money: Their service is provided at no cost to you, and their expert advice can prevent costly mistakes.
Step 5: Make an Informed Decision
With your broker's guidance, you can confidently decide the best path forward:
- Consolidate: Cancel the weaker policy and potentially upgrade your "master" policy to fill any gaps.
- Switch: Move to an entirely new, single policy that offers better value than your current combination.
- Complement: Keep both policies, but only if there is a clear and justifiable reason, such as a basic plan being topped up by a specialist one.
Beyond PMI: A Holistic Approach to Your Wellbeing
Private medical insurance is a powerful tool for when things go wrong, but the best strategy is to stay healthy in the first place. Modern PMI providers recognise this and increasingly include benefits that support a proactive and healthy lifestyle.
Taking control of your health can reduce your long-term reliance on medical treatment and improve your quality of life.
- Nutrition and Diet: A balanced diet rich in whole foods is fundamental to good health. According to the NHS, this helps maintain a healthy weight and reduces your risk of chronic diseases like type 2 diabetes and heart disease. To help with this, WeCovr provides clients who purchase PMI or Life Insurance with complimentary access to CalorieHero, our AI-powered calorie and nutrition tracking app.
- Physical Activity: Aim for at least 150 minutes of moderate-intensity activity (like brisk walking or cycling) or 75 minutes of vigorous-intensity activity (like running or swimming) a week, as recommended by the NHS.
- Quality Sleep: Sleep is not a luxury; it's essential for physical and mental recovery. Most adults need 7-9 hours of quality sleep per night. Poor sleep is linked to a range of health issues, including a weakened immune system.
- Mental Resilience: Stress is a part of modern life, but chronic stress can be damaging. Techniques like mindfulness, meditation, and regular exercise can help. Many top-tier PMI policies now include access to mental health support lines, digital CBT courses, and even face-to-face therapy sessions.
WeCovr's Added Value: More Than Just a Broker
Choosing the right private medical insurance UK can feel overwhelming. At WeCovr, we simplify the process and add value at every step. As an FCA-authorised broker with high customer satisfaction ratings, our focus is entirely on finding the right solution for you.
When you work with us, you get:
- Expert, Unbiased Advice: We compare plans from across the market to find the best fit for your budget and health needs.
- Complimentary CalorieHero Access: All our PMI and Life Insurance clients receive free access to our AI nutrition app to support their health goals.
- Multi-Policy Discounts: When you arrange your PMI through us, we can offer discounts on other essential cover, such as life insurance or income protection, helping you build a complete financial safety net for less.
Stop paying twice for the same peace of mind. Let us help you streamline your cover and ensure your money is working as hard as it can to protect your health.
Frequently Asked Questions (FAQ)
Do I need to declare my existing PMI policy when applying for a new one?
Can I claim the excess from one policy on my other policy?
What happens if I cancel my old PMI and a health condition I developed while insured reappears?
Is a health cash plan the same as a PMI policy?
Ready to find out if you're overpaying for your health cover?
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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!