Private Health Insurance Renewal Guide UK
As an FCA-authorised expert that has helped arrange over 800,000 policies, WeCovr understands the UK private medical insurance market inside and out. This guide explains everything you need to know about your PMI renewal, helping you make the best decision for your health and your finances.
What to do when your PMI comes up for renewal
That familiar envelope or email has arrived: your private medical insurance (PMI) renewal notice. For many, the first instinct is to glance at the new, often higher, premium and simply let it roll over. However, taking a moment to actively review your policy can save you hundreds of pounds and ensure your cover remains perfectly suited to your needs.
Your renewal is not just an administrative task; it's a crucial annual health-check for your financial protection. Think of it as an opportunity. With NHS waiting lists remaining a significant concern—with millions of treatment pathways still awaiting the start of consultant-led care according to recent NHS England figures—having the right private health cover is more important than ever.
This guide will walk you through every step of the renewal process, from understanding why your premium has changed to how you can secure the best possible deal.
A Crucial Reminder: What UK Private Health Insurance Covers
Before we dive in, it's vital to remember what standard UK private medical insurance is for.
PMI is designed to cover acute conditions that arise after you take out your policy.
- An acute condition is a disease, illness, or injury that is likely to respond quickly to treatment and lead to a full recovery. Think of things like joint replacements, cataract surgery, or hernia repairs.
- PMI does not cover chronic conditions. These are long-term illnesses that need ongoing management and have no known cure, such as diabetes, asthma, or high blood pressure.
- It also does not cover pre-existing conditions—any ailment for which you have had symptoms, medication, or advice in the years before your policy began.
Understanding this distinction is key to managing your expectations and using your policy correctly.
Understanding Your Renewal Notice
Your renewal pack, which should arrive around 3-4 weeks before your policy expires, contains two key pieces of information:
- Your Renewal Premium: The price for your next year of cover.
- Your Certificate of Insurance: A document outlining your current level of cover, including any exclusions, your chosen excess, and your hospital list.
Don't just focus on the price. Scrutinise the certificate to remind yourself exactly what you're paying for. Has anything changed? Sometimes insurers update their terms, so it’s worth a quick read.
Why Do Private Health Insurance Premiums Increase Each Year?
It's the question on every policyholder's mind: "Why has my premium gone up again?" It's rarely a single reason, but a combination of factors. Understanding them helps demystify the price hike.
| Factor | How It Affects Your Premium |
|---|---|
| Age | This is the biggest driver. As we get older, the statistical likelihood of needing medical treatment increases. Most insurers have age brackets, and moving into a new one (e.g., from 49 to 50) can trigger a significant price jump. |
| Medical Inflation | The cost of private healthcare—new drugs, advanced scanning technology, specialists' fees, and hospital running costs—rises faster than general inflation. This "medical inflation" typically runs at 8-12% per year. |
| Your Claims History | If you've made a claim in the past year, you will likely lose your No Claims Discount (NCD). This works just like car insurance; a protected NCD can be a valuable policy feature. |
| Provider's Claims Pool | Your premium is also affected by the claims made by the insurer's entire pool of customers. If the provider had a year with a high volume of expensive claims, they will spread this cost across all members. |
| Insurance Premium Tax (IPT) | This is a tax charged by the government on all general insurance policies, including PMI. The standard rate is currently 12%. Any increase in IPT will directly increase your premium. |
Seeing your premium rise by 15-25% at renewal is not uncommon, even if you haven't claimed. While it can be disheartening, it's a market reality. The key is not to accept it without a fight.
Your Three Renewal Options: The Good, The Bad, and The Savvy
When your renewal notice lands, you have three main choices.
Option 1: Do Nothing (The Auto-Renewal Trap)
This is the easiest option. You let the policy automatically renew at the quoted price.
- Pros: Requires zero effort. Your cover continues seamlessly.
- Cons: You will almost certainly be overpaying. Insurers often save their best rates for new customers, a practice known as "price walking," which the Financial Conduct Authority (FCA) has taken steps to curb but which can still implicitly disadvantage loyal customers. You could be paying significantly more for the same cover available elsewhere.
Option 2: Renegotiate with Your Current Insurer
You can call your provider and ask for a better price. Sometimes they will be able to offer a discount or suggest ways to reduce your premium.
- Pros: Can lead to a quick reduction in cost without the hassle of switching.
- Cons: Your insurer will only discuss their own products. You won't know if a competitor is offering a far superior deal for the same price. Their suggestions for cost-cutting might involve downgrading your cover in ways that aren't ideal.
Option 3: Review the Whole Market with a Broker (The Smart Choice)
This involves using an independent, expert broker to compare your renewal offer against policies from all the leading UK providers.
- Pros:
- Saves Money: A broker has access to the whole market and can find the best value. The savings can be substantial.
- Expert Advice: They understand the complex jargon and can explain the real-world differences between policies.
- Saves Time: They do all the legwork for you.
- No Cost to You: Reputable brokers like WeCovr are paid a commission by the insurer you choose, so their service is free for you.
- Cons: Takes slightly more effort than auto-renewing, but the payoff is well worth it.
For the vast majority of people, Option 3 is the most sensible and financially prudent path.
A Step-by-Step Guide to Reviewing Your PMI Policy
Whether you decide to renegotiate or switch, a thorough review is essential. Here’s how to do it.
1. Re-evaluate Your Level of Cover
Does your policy still match your needs? Private medical insurance UK policies are modular, meaning you can add or remove components.
- In-patient and Day-patient Cover: This is the core of all PMI policies, covering treatment where you need a hospital bed. This is almost always included as standard.
- Out-patient Cover: This covers consultations, diagnostic tests, and scans that don't require a hospital bed. This is a major area where you can adjust your premium. Options range from no cover, to a limited cash amount (£500, £1,000, £1,500), to full cover.
- Pro Tip: If you have savings, you might consider a lower out-patient limit and self-fund some initial diagnostics to reduce your annual premium.
- Therapies Cover: This includes treatments like physiotherapy, osteopathy, and chiropractic care. Is this important to you?
- Mental Health Cover: Support for mental health is an increasingly valued part of PMI. Check if your policy includes it and if the level of cover is adequate for your peace of mind.
2. Check 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 £4,000, you pay the first £250 and the insurer pays the remaining £3,750.
- Increasing your excess is one of the quickest ways to lower your premium.
- Excesses typically range from £0 to £1,000.
- Consider what you could comfortably afford to pay in the event of a claim. Moving from a £100 excess to a £500 excess could save you a significant amount over the year.
3. Review Your Hospital List
Insurers group UK private hospitals into tiers. A comprehensive list including prime central London hospitals will be the most expensive.
- Do you need access to every hospital in the country, or would a more local or limited list suffice?
- Changing to a list that excludes the most expensive city-centre hospitals can result in a premium reduction of 10-20%.
- Think realistically about where you would want to be treated.
4. Consider a "Guided" or "Expert Select" Option
Many major insurers now offer "guided" consultant options. With these policies, you give up some choice over your specialist in return for a lower premium.
The insurer will provide you with a shortlist of 2-3 vetted, high-quality specialists for your condition, from which you can choose. This helps the insurer control costs, and they pass the savings on to you. If you don't have a specific consultant in mind and trust your insurer's network, this is an excellent way to save money without compromising on the quality of care.
Switching Insurers: The Process and Pitfalls
If your review suggests a better deal is available elsewhere, it's time to consider switching. This is where many people worry about their medical history. However, a special process exists to make it seamless.
Understanding Underwriting for Switchers: CPME
When you switch private health cover, you don't want to lose cover for conditions that developed while you were with your previous insurer. This is where Continued Personal Medical Exclusions (CPME) underwriting comes in.
With CPME, your new insurer agrees to match the terms of your old policy. They will carry over any personal exclusions you had, but they won't add new ones for conditions you've suffered in the meantime. You get to keep your continuous cover history.
This is the gold standard for switching and is something an expert PMI broker will handle for you.
Other Underwriting Types
It's useful to know the other main types of underwriting:
| Underwriting Type | How It Works | Best For... |
|---|---|---|
| Full Medical Underwriting (FMU) | You complete a detailed health questionnaire. The insurer assesses your full medical history and applies specific, permanent exclusions for any pre-existing conditions. | People who want absolute clarity on what is and isn't covered from day one. |
| Moratorium (Mori) | No medical questionnaire is needed upfront. The insurer automatically excludes any condition for which you've had symptoms, treatment, or advice in the 5 years before the policy start date. This exclusion can be lifted if you go 2 continuous years on the policy without needing treatment, advice, or medication for that condition. | People who are generally healthy and want a quick and easy application process. This is the most common type for new policies. |
Switching your policy on a CPME basis is almost always the best option to protect your continuity of cover. An experienced broker can manage this entire process, ensuring a smooth transition with no loss of protection.
Adding Value: More Than Just Medical Cover
The modern private health insurance market is about more than just paying for operations. Insurers are increasingly focused on keeping you well. When reviewing your policy, look for these valuable extras:
- Digital GP Services: 24/7 access to a GP via phone or video call. This is incredibly convenient and can lead to faster referrals.
- Wellness Programmes: Many providers offer discounts on gym memberships, fitness trackers, and healthy food. Some, like Vitality, build their entire model around rewarding healthy behaviour with lower premiums and other perks.
- Mental Health Support: This can range from a few sessions of CBT to comprehensive cover for psychiatric treatment.
- Broker Benefits: When you arrange a policy through a forward-thinking broker like WeCovr, you can get even more. We provide our PMI and Life Insurance clients with complimentary access to our AI-powered calorie and nutrition tracking app, CalorieHero, to support their health goals. We also offer discounts on other insurance products, like income protection or travel insurance, when you hold a PMI policy with us.
These benefits can add significant real-world value and should be factored into your decision.
A Note on Your Diet, Lifestyle, and Premiums
While your diet and exercise habits don't directly set your initial premium, they play a huge role in your long-term health and, therefore, your likelihood of claiming.
- Nutrition: A balanced diet rich in fruits, vegetables, and whole grains can reduce the risk of many acute conditions that PMI covers. Using an app like CalorieHero can help you understand your eating habits and make positive changes.
- Activity: Regular physical activity is proven to boost cardiovascular health, strengthen joints, and improve mental well-being. Even 30 minutes of brisk walking five times a week can make a difference.
- Sleep: Prioritising 7-9 hours of quality sleep per night is fundamental to physical and mental recovery, helping your body stay resilient.
By staying healthy, you are more likely to benefit from a No Claims Discount year after year, directly controlling one of the key factors in your renewal premium.
Common Renewal Pitfalls to Avoid
- Focusing Only on Price: The cheapest policy is not always the best. A policy with a £1,500 out-patient limit is not the same as one with full cover. Make sure you're comparing like-for-like benefits.
- Forgetting New Dependants: Have you had a child or has your partner moved in? Renewal is the perfect time to add them to your policy.
- Ignoring Policy Documents: Insurers can and do change their terms. They might alter the hospital list or tweak the wording on benefits. A quick scan is always worthwhile.
- Assuming You Can't Switch: Many people with ongoing health issues assume they are trapped with their current provider. With CPME underwriting, this is often not the case. It costs nothing to get a comparative quote and find out.
- Going It Alone: The PMI market is complex. A broker's job is to simplify it for you. They can spot pitfalls you might miss and have the leverage to negotiate on your behalf. Using an FCA-authorised broker like WeCovr, which has high customer satisfaction ratings, ensures you get impartial, expert advice tailored to you.
Your Renewal Action Plan
Feeling overwhelmed? Don't be. Here is a simple, 5-step action plan for when your renewal notice arrives.
- DIARISE IT: As soon as the pack arrives, put a reminder in your calendar for one week before the renewal date. Don't leave it to the last minute.
- REVIEW IT: Read the renewal letter and your Certificate of Insurance. Note the new premium and remind yourself of your current cover level, excess, and hospital list.
- ASSESS IT: Do your benefits still fit your life? Do you need that expensive central London hospital list? Could you afford a higher excess?
- SHOP AROUND: This is the most important step. Contact an independent broker. Provide them with your current policy details and renewal quote. They will research the market and come back to you with a series of options.
- DECIDE: Armed with expert advice and clear comparisons, make an informed choice. Either switch to a new provider, or use the quotes you've received to go back and negotiate a better deal with your current insurer.
By following this plan, you put yourself back in control and ensure you're not paying more than you need to for the protection you and your family deserve.
Do I have to tell my new insurer about my medical history if I switch?
Will my premium still go up if I haven't made a claim?
Can I lower my private health insurance renewal cost?
Is it worth using a PMI broker for my renewal?
Your health is your most valuable asset. Ensuring it's protected by the right insurance policy at the right price is a decision worth getting right.
Don't just accept your renewal quote. Challenge it.
Get in touch with WeCovr today for a free, no-obligation review of your private medical insurance. Our expert advisors will compare the market for you and find the best possible cover for your needs and budget.
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!