Policy Renewal and Switching Making Smart PMI Moves
As an FCA-authorised broker that has helped arrange over 900,000 policies, WeCovr provides expert guidance on private medical insurance (PMI) in the UK. This article explains how to navigate your policy renewal, switch providers intelligently, and ensure you always have the best cover for your needs.
Updated guidance for policyholders on renewing PMI, switching providers, negotiating better terms, and avoiding coverage gaps
Your private medical insurance renewal letter has landed on your doormat. The premium has likely increased, and you're wondering: should I simply renew, or is there a better deal out there?
Making a smart decision about your private health cover is more important than ever. With NHS waiting lists remaining a significant concern – NHS England data from early 2025 showed millions of treatment pathways on the waiting list – having the right PMI policy provides invaluable peace of mind and swift access to care.
This comprehensive guide will walk you through every step of the renewal and switching process, empowering you to make the best choice for your health and your finances.
Decoding Your PMI Renewal Notice
That multi-page document from your insurer can feel intimidating. It’s full of policy jargon, schedules of benefits, and, most noticeably, your new premium for the upcoming year. Let's break down what it all means.
Why Do PMI Premiums Increase Every Year?
It’s the number one question policyholders ask. An increase in your premium is almost inevitable and is driven by a few key factors:
- Your Age: As we get older, the statistical likelihood of needing medical treatment increases. Most insurers have age-related price bands, and moving into a new band (e.g., turning 40, 50, or 65) will trigger a price rise.
- Medical Inflation: This is a crucial factor. The cost of private medical treatment—from new drugs and advanced surgical techniques to hospital running costs—rises faster than general inflation. According to industry analysis, medical inflation typically runs between 7% and 12% per year in the UK.
- Your Claims History: If you've made a claim in the past year, your insurer may adjust your premium upwards. Conversely, many policies have a no-claims discount that reduces your premium if you haven't claimed.
- Insurance Premium Tax (IPT): This is a tax levied by the UK government on all general insurance policies, including PMI. The standard rate is currently 12%, and any changes to it will affect your premium.
Your renewal notice should provide a basic explanation for the change in price, but it often lacks the full context. Don't just accept the new figure at face value—see it as a prompt to review your cover.
The Big Decision: Should You Renew or Switch?
Once you understand why your premium has risen, you face a choice: stick with your current provider or switch to a new one. Both options have distinct advantages and disadvantages.
| Action | Pros | Cons |
|---|---|---|
| Renewing Your Policy | Simplicity: It's the easiest option, often requiring no action at all. Continuous Cover: You have no risk of a gap in your coverage. Loyalty Benefits: Some insurers may offer benefits for long-standing customers (though this is rare). | Higher Premiums: You will almost certainly pay more than a new customer for equivalent cover. Complacency: Your existing policy may no longer be the best fit for your needs or the most competitive on the market. |
| Switching Provider | Cost Savings: You can often find a cheaper policy with similar or even better benefits. Better Terms: A new provider might offer more extensive cancer cover, better mental health support, or a wider choice of hospitals. Modern Benefits: Newer policies may include valuable extras like virtual GP services, wellness apps, and health rewards. | Complex Process: Switching requires research and paperwork. Underwriting: This is the biggest hurdle. Your medical history must be reassessed, which can lead to new exclusions. Risk of Gaps: If not managed carefully, you could be left without cover between policies. |
The best path depends entirely on your personal circumstances, your health history, and your budget.
How to Negotiate Better Terms on Your Existing Policy
Before you jump ship, it’s worth speaking to your current insurer. They want to keep your business, and you may have more bargaining power than you think.
Here are four ways to potentially lower your renewal premium:
- Increase Your Excess: The excess is the amount you agree to pay towards any claim. Increasing it from, say, £250 to £500 or £1,000 can significantly reduce your premium. You're taking on more of the initial financial risk, so the insurer charges you less.
- Review Your Hospital List: Most PMI policies have tiered hospital lists. A comprehensive list including prime central London hospitals is the most expensive. If you’re happy to use a more limited network of hospitals closer to home, you could make substantial savings.
- Add a 6-Week Option: This is a popular way to cut costs. A 6-week option means your private cover only kicks in if the NHS waiting list for the inpatient treatment you need is longer than six weeks. As many routine procedures have much longer waits, this can be a very effective cost-saving measure that still provides a crucial safety net.
- Reduce Outpatient Cover: The level of outpatient cover (for things like consultations and diagnostic tests before a hospital admission) is a major driver of cost. You could reduce your limit from, for example, £1,500 to £500, or remove it entirely if you are comfortable using the NHS for initial diagnostics.
When you call your insurer, be polite but firm. State that you are reviewing your options and have seen more competitive quotes elsewhere. Ask them directly: "What is the best possible price you can offer me to retain my business?"
The Smart Way to Switch Your Private Medical Insurance UK
If negotiation fails or you're confident a better deal exists elsewhere, it’s time to switch. But this must be done carefully to protect your health and avoid future problems. The key to a successful switch lies in understanding underwriting.
Underwriting is how an insurer assesses your medical history to decide what they will and will not cover.
A Critical Reminder: Pre-existing and Chronic Conditions
This is the most important rule in UK private medical insurance. Standard PMI policies are designed to cover acute conditions that arise after you take out the policy.
- Acute Condition: A disease, illness, or injury that is likely to respond quickly to treatment and lead to a full recovery (e.g., appendicitis, a broken bone, cataracts).
- Chronic Condition: A condition that is long-lasting and often has no known cure. It can be managed but not resolved (e.g., diabetes, asthma, arthritis, high blood pressure).
- Pre-existing Condition: Any illness, injury, or symptom for which you have sought medical advice, diagnosis, or treatment in the years before your policy starts (typically the last 5 years).
PMI does not cover the management of chronic conditions or treatment for pre-existing conditions. This is fundamental. When you switch insurers, how they treat your medical history is paramount.
Understanding Your Underwriting Options for Switching
When you move to a new insurer, you generally have three underwriting choices. This is the most complex part of switching, and where an expert broker is invaluable.
| Underwriting Type | How It Works | Best For |
|---|---|---|
| Moratorium (Mori) | You don't declare your full medical history upfront. The insurer applies a blanket exclusion for any condition you've had in the past 5 years. This exclusion can be lifted for a specific condition if you go for a set period (usually 2 years) without any symptoms, treatment, or advice for it. | People who are generally healthy, have had no recent medical issues, and prefer a quicker application process. It's the most common type of underwriting for new policies. |
| Full Medical Underwriting (FMU) | You complete a detailed health questionnaire, disclosing your entire medical history. The insurer assesses it and lists specific, permanent exclusions on your policy from day one. | People who want absolute clarity on what is and isn't covered from the start. Also useful for those with historical conditions they want the insurer to consider covering. |
| Continued Personal Medical Exclusions (CPME) | This is specifically for people switching from another PMI policy. The new insurer agrees to carry over the same exclusions you had on your old policy. You can continue your cover without new medical restrictions, provided you haven't developed new conditions. This is often called "switch" underwriting. | Almost always the best option for anyone with an existing medical history. It allows you to switch providers to get a better price without losing cover for conditions that may have developed whilst you were insured. |
Real-Life Example: The Importance of CPME
Sarah, 48, has had a PMI policy for six years. Two years ago, she had treatment for gallstones. Her renewal premium has just increased by 20%. She finds a cheaper policy online and applies with moratorium underwriting.
A year later, she experiences similar abdominal pain. Her new insurer investigates and finds the issue is related to her previous gallstone problem. Because this was a pre-existing condition within the last 5 years, they decline her claim.
If Sarah had used a broker like WeCovr, they would have advised her to switch on a CPME basis. The new insurer would have accepted her history, and her new claim would likely have been covered.
How to Switch Providers and Avoid Coverage Gaps: A Step-by-Step Guide
Follow these steps for a seamless transition:
- Start Early: Begin your research at least 4-6 weeks before your renewal date. This gives you plenty of time to get quotes and complete applications without rushing.
- Speak to a Broker: This is our strongest recommendation. An independent PMI broker can compare the whole market for you. They understand the nuances of each insurer's "switch" terms and can ensure you apply on the correct (CPME) basis if you have a medical history. This service is provided at no cost to you.
- Gather Your Documents: Have your current policy schedule and renewal notice to hand. This contains all the information a broker or new insurer will need, including your current cover level and underwriting type.
- Get Like-for-Like Quotes: To accurately compare prices, ask for quotes that match your current level of benefits (excess, outpatient cover, hospital list). You can then explore adjustments to see how they affect the price.
- Complete the Application Honestly: Whether you choose FMU or CPME, you must be completely truthful. Failing to disclose something, even if you think it's minor, can be classed as non-disclosure and could lead to your policy being cancelled and claims being rejected.
- Receive Your Offer: The new insurer will provide you with a formal offer of cover, detailing the terms, price, and any specific exclusions. Review this document meticulously.
- Do NOT Cancel Your Old Policy Yet! This is a critical mistake. Wait until your new policy is fully accepted and you have the policy documents in your hand.
- Set the Start Date and Cancel the Old One: Set the start date of your new policy for the day your old one expires. Then, contact your old insurer and inform them you will not be renewing. Make sure you cancel any direct debit. This ensures you have continuous, uninterrupted cover.
Beyond the Policy: Wellness, Prevention, and Added Value
The best way to manage your health and your PMI premiums is to stay healthy. A healthy lifestyle can reduce your risk of developing many acute and chronic conditions.
- Balanced Diet: Focus on whole foods—fruits, vegetables, lean proteins, and whole grains. Staying hydrated is also key. Using an app to track your intake, like the AI-powered CalorieHero app that WeCovr provides complimentary access to, can make managing your nutrition much easier.
- Regular Activity: Aim for at least 150 minutes of moderate-intensity activity (like a brisk walk or cycling) or 75 minutes of vigorous activity (like running or swimming) per week, as recommended by the NHS.
- Prioritise Sleep: 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 and high blood pressure.
- Manage Stress: Chronic stress can have a significant physical impact. Techniques like mindfulness, yoga, or even just spending time in nature can be powerful tools for managing stress levels.
Many modern PMI providers actively encourage healthy living by offering rewards and discounts for hitting activity goals, completing health assessments, or buying healthy food. When comparing policies, look for these value-added wellness programmes.
Why Use an Expert PMI Broker Like WeCovr?
Navigating the private medical insurance UK market alone can be daunting. The jargon is confusing, the policy details are complex, and the risk of making a mistake is high. This is where a specialist broker adds immense value.
- Market Expertise: An independent broker has access to policies from a wide range of insurers, including deals that aren't available to the public. They know which providers are most competitive for your age and needs.
- Underwriting Navigation: This is their superpower. A good broker will assess your medical history and recommend the best underwriting option to ensure you maintain the cover you need. They will manage the switch process on a CPME basis for you, which is difficult to do on your own.
- No Cost to You: Brokers are paid a commission by the insurer you choose, so their expert advice and support don't cost you a penny.
- Time-Saving: Instead of you spending hours filling in multiple forms and comparing confusing documents, a broker does all the legwork.
- Long-Term Partner: Your broker can review your policy every year, ensuring you are always on the best possible plan.
WeCovr has a long history of helping UK customers find the right health cover, with high customer satisfaction ratings reflecting our commitment to clear, impartial advice. We also offer our PMI and life insurance clients discounts on other types of cover, adding even more value.
Common Pitfalls to Avoid When Switching
- Focusing Only on Price: The cheapest policy is rarely the best. It might have a very restricted hospital list, a high excess, or minimal outpatient cover that makes it unsuitable for your needs.
- Misunderstanding Underwriting: As we've detailed, choosing a moratorium policy when you have existing conditions is a major risk. Always seek advice on this.
- Forgetting New Conditions: If you've developed a new condition while with your current insurer, it is covered. Switching on a moratorium basis would mean that condition becomes pre-existing and is therefore excluded by the new insurer. A CPME switch is essential here.
- Not Reading the Fine Print: Every policy has exclusions—things it won't cover. Common exclusions include routine pregnancy, cosmetic surgery, and chronic condition management. Read your policy documents carefully.
Making an informed decision about your PMI is a proactive step towards safeguarding your health. By reviewing your policy annually, understanding your options, and seeking expert advice, you can ensure you have the right cover at the right price, year after year.
Will switching my PMI provider mean I have to serve new waiting periods?
Do I need to declare every single GP visit when applying for a new policy?
Can I switch my PMI policy if I am currently undergoing treatment?
Is it cheaper to buy PMI direct from an insurer or through a broker?
Ready to review your private medical insurance and ensure you have the best cover at the most competitive price?
[Get your free, no-obligation PMI quote from WeCovr today and let our experts guide you through every step.]
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!