TL;DR
Navigating the world of private medical insurance in the UK can feel complex, but understanding how to secure discounts is key to making it affordable. As an FCA-authorised expert broker that has helped over 900,000 customers find the right cover, WeCovr believes that peace of mind shouldn't break the bank. This guide reveals the insider secrets to lowering your premiums without compromising on quality care.
Key takeaways
- Per Claim vs. Per Year: Most policies have an excess that applies to each new claim you make in a policy year. Some offer a "per year" excess, where you only pay it once, no matter how many claims you make. The "per year" option is typically more expensive but offers greater predictability.
- Finding Your Balance (illustrative): The right excess is a personal choice. You need to balance the immediate saving on your premium against what you could comfortably afford to pay if you needed to make a claim. A £1,000 excess offers huge savings, but only if you have that amount readily available.
- Virtual GP appointments: 24/7 access to a doctor via phone or video call.
- Mental health support lines: Access to counsellors and therapists.
- Health and wellness apps: Tools for tracking fitness, diet, and wellbeing.
Navigating the world of private medical insurance in the UK can feel complex, but understanding how to secure discounts is key to making it affordable. As an FCA-authorised expert broker that has helped over 900,000 customers find the right cover, WeCovr believes that peace of mind shouldn't break the bank.
This guide reveals the insider secrets to lowering your premiums without compromising on quality care. We’ll explore the powerful impact of no-claims discounts, guided consultant options, and choosing the right excess to slash the cost of your policy.
How to save with no-claims bonuses, guided options and excess
The three pillars of saving on your private health insurance are understanding your excess, building a no-claims discount, and being flexible with your choice of hospitals or consultants. By mastering these three elements, you can reduce your monthly premiums by as much as 50% or more. Let's break down how each one works.
Understanding Your Excess: The First Step to Lower Premiums
Think of an excess like the one on your car or home insurance. It's the amount you agree to pay towards the cost of any claim you make. The insurer pays the rest, up to your policy limits.
Choosing a higher excess is one of the quickest and most effective ways to reduce your monthly premium. Insurers reward you for sharing a small part of the financial risk.
For example, if you have a policy with a £250 excess and you make a claim for a procedure costing £3,000, you would pay the first £250, and your insurer would cover the remaining £2,750.
Here’s how different excess levels can impact your premiums:
| Excess Level | Estimated Monthly Premium* | Potential Annual Saving (vs. £0 Excess) |
|---|---|---|
| £0 | £90 | £0 |
| £250 | £75 | £180 |
| £500 | £65 | £300 |
| £1,000 | £52 | £456 |
*Estimates are for a healthy 40-year-old with a comprehensive policy. Your actual quotes will vary.
Key Considerations:
- Per Claim vs. Per Year: Most policies have an excess that applies to each new claim you make in a policy year. Some offer a "per year" excess, where you only pay it once, no matter how many claims you make. The "per year" option is typically more expensive but offers greater predictability.
- Finding Your Balance (illustrative): The right excess is a personal choice. You need to balance the immediate saving on your premium against what you could comfortably afford to pay if you needed to make a claim. A £1,000 excess offers huge savings, but only if you have that amount readily available.
Unlocking No-Claims Discounts: Your Reward for Staying Healthy
A No-Claims Discount (NCD), sometimes called a No-Claims Bonus, is a significant discount applied to your renewal premium for every year you don't make a claim on your policy. This is the insurer's way of rewarding you for not using the policy, and the savings can be substantial.
The discount is applied on a sliding scale, increasing each year you remain claim-free, up to a maximum level. While the exact scale varies between insurers, a typical structure looks like this:
| Years Without a Claim | Typical Discount Level |
|---|---|
| 0 (New Policy) | 0% |
| 1 Year | 10% - 15% |
| 2 Years | 20% - 25% |
| 3 Years | 30% - 35% |
| 4 Years | 40% - 45% |
| 5 Years | 50% - 55% |
| 6+ Years | 60% - 75% (Maximum) |
How a Claim Affects Your NCD
Making a claim doesn't mean your discount disappears entirely. Instead, your NCD will typically "step back" by a few levels. For example, if you are on Level 5 (50% discount) and make a claim, you might drop back to Level 2 (20% discount) at your next renewal, rather than starting again at 0%.
Important: Not All Benefits Affect Your NCD
A common myth is that using any part of your policy will impact your NCD. This isn't true. Many modern private medical insurance UK policies include valuable benefits that you can use without affecting your discount, such as:
- Virtual GP appointments: 24/7 access to a doctor via phone or video call.
- Mental health support lines: Access to counsellors and therapists.
- Health and wellness apps: Tools for tracking fitness, diet, and wellbeing.
- Discounts on gym memberships and health tech.
Using these preventative services is encouraged by insurers and won't penalise you.
Guided Options & Hospital Lists: Smart Choices for Big Savings
One of the biggest factors influencing your premium is your choice of hospitals and specialists. By being flexible here, you can unlock some of the most significant discounts available.
Guided Consultant Options
Also known as "Expert Select" or "Directed Care," this is a popular option offered by providers like Aviva and AXA. Instead of choosing any consultant you wish, the insurer provides you with a shortlist of 3-5 pre-approved specialists for your condition.
- The Benefit: You are still seeing a highly-vetted, expert consultant, but because the insurer has negotiated preferential rates with this network, they pass the savings on to you.
- The Saving: Opting for a guided option can reduce your premium by 15% to 25%.
This is an excellent choice for those who trust their insurer to find a top-quality specialist and are happy to trade unlimited choice for a lower price.
Tailoring Your Hospital List
Insurers group UK private hospitals into tiers or "lists" based on their cost. Hospitals in Central London, for example, are the most expensive to receive treatment in. By tailoring your hospital list to your actual needs, you can avoid paying for access you'll never use.
| Hospital List Tier | Description | Estimated Premium Impact |
|---|---|---|
| Premium List | Full UK coverage, including the most expensive private hospitals in Central London. | Highest Cost |
| National List | Extensive nationwide coverage, but excludes a handful of prime London hospitals. | ~10-15% saving |
| Local or Trust Network | A curated list of hospitals in your region, often including private wings of NHS Trusts. | ~20-30% saving |
| Guided/Directed Option | Your insurer chooses a hospital for you from their approved network. | Up to 40% saving |
An expert PMI broker like WeCovr can be invaluable here. We can analyse the hospital lists from different providers against your postcode to ensure you have excellent local coverage without paying for a premium national list you don't need.
The "6-Week Wait" Option: Using the NHS to Your Advantage
The "6-week wait" option is a clever feature that creates a partnership between your private cover and the NHS. It works like this:
- Your GP refers you for eligible inpatient treatment (e.g., a knee replacement).
- Your insurer checks the NHS waiting list for that procedure in your area.
- If the NHS can treat you within 6 weeks, you use the NHS.
- If the NHS waiting time is longer than 6 weeks, your private cover activates immediately, and you are treated privately.
This option provides a safety net, guaranteeing you'll be treated promptly while significantly lowering your premium because you agree to use the NHS when it's efficient.
Given the current pressures on the health service, this can be a very smart choice. According to the latest NHS England data, the overall waiting list for consultant-led elective care stood at 7.54 million treatment pathways. While the NHS works hard to reduce this, the 6-week wait option ensures you bypass long waits for serious conditions.
This feature alone can reduce your premium by 20% to 30%.
Critical Point: What Private Health Insurance Does NOT Cover
It is essential to be clear on the purpose of private medical insurance in the UK. It is not a replacement for the NHS but a complementary service.
Standard UK PMI is designed to cover 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 (e.g., joint replacement, cataract surgery, hernia repair).
- A chronic condition is a long-term illness that can be managed but not cured (e.g., diabetes, asthma, high blood pressure). Management of chronic conditions is not covered by PMI and remains with the NHS.
- Pre-existing conditions – illnesses or injuries you had before taking out the policy – are also excluded. Insurers handle this through two types of underwriting:
- Moratorium: This is the most common. Any condition you've had symptoms, treatment, or advice for in the 5 years before your policy starts is excluded. However, if you go 2 continuous years on the policy without any issues relating to that condition, it may become eligible for cover.
- Full Medical Underwriting (FMU): You provide a full medical history upfront. The insurer gives you a definitive list of what is and isn't covered from day one. This takes longer but provides absolute clarity.
More Ways to Save on Your Private Health Cover
Beyond the "big three," there are several other practical ways to make your policy more affordable.
- Pay Annually: If you can, paying your premium in one annual lump sum can save you around 5% compared to paying monthly, as it avoids interest charges.
- Limit Outpatient Cover: Outpatient services include consultations and diagnostics that don't require a hospital bed. A standard policy might have unlimited outpatient cover, but you can save money by capping it at, for example, £1,000 or £500 per year.
- Review Cover at Renewal: Never simply auto-renew. The market changes, and a competitor may have a better offer. Speaking to a broker each year ensures you're always on the best-value plan.
- Embrace Wellness Programmes: Providers like Vitality have pioneered a model where they reward you for healthy living. By tracking your activity, getting health checks, and engaging with their app, you can earn points that lead to lower renewal premiums, as well as instant rewards like free coffee and cinema tickets.
- Take Advantage of Broker Benefits: When you arrange your policy through WeCovr, you not only get expert, impartial advice but also complimentary access to our AI-powered calorie and nutrition tracking app, CalorieHero. Plus, customers who buy PMI or life insurance often receive discounts on other types of cover, like home or travel insurance.
Real-Life Savings Examples
Let's see how these strategies work in practice.
Case Study 1: Sarah, 35, Freelance Designer
- Initial Quote (illustrative): Sarah's first quote for a comprehensive policy was £80 per month.
- The Adjustments:
- Illustrative estimate: She added a £500 excess.
- She chose the insurer's guided consultant option.
- She opted for the 6-week wait feature.
- Final Premium (illustrative): Her new premium was just £45 per month, a saving of 44%, while still having robust cover for serious conditions.
Case Study 2: David and Chloe, 48 & 46, a Couple
- Initial Quote (illustrative): Their joint policy was quoted at £165 per month. They wanted to keep full hospital choice and unlimited outpatient cover.
- The Adjustments:
- Illustrative estimate: They increased their excess from £250 to £1,000 per person.
- They opted to pay annually instead of monthly.
- Final Premium (illustrative): Their annual premium was £1,560, which works out to £130 per month. This saved them £420 per year without changing their core cover. Their long-standing no-claims discount also helped keep the cost down.
Are pre-existing conditions ever covered by private medical insurance?
Does making a small claim for something like physiotherapy affect my no-claims discount?
Can I get a discount on my health insurance for being a non-smoker or having a healthy BMI?
Ready to find out exactly how much you could save?
The private medical insurance market is complex, but you don't have to navigate it alone. The expert, FCA-authorised team at WeCovr is here to help. We compare leading UK providers to find a policy that fits your health needs and your budget, all at no cost to you.
Get your free, no-obligation quote today and discover a smarter way to secure your health.
Sources
- Office for National Statistics (ONS): Mortality, earnings, and household statistics.
- Financial Conduct Authority (FCA): Insurance and consumer protection guidance.
- Association of British Insurers (ABI): Life insurance and protection market publications.
- HMRC: Tax treatment guidance for relevant protection and benefits products.
