TL;DR
With NHS waiting lists remaining a significant concern, private medical insurance (PMI) is a lifeline for many in the UK. As an FCA-authorised broker that has helped arrange over 900,000 policies, WeCovr specialises in helping people find the right cover and, crucially, ensuring they don't overpay for it. How much you could save by moving to a new provider The burning question for any policyholder facing a steep renewal price is: "How much could I actually save by switching my private health insurance?" The answer is often substantial.
Key takeaways
- Who: A family of four (parents aged 45 and 43, two children under 10) in Manchester.
- Existing Policy: A comprehensive plan with a major insurer.
- Renewal Premium: Quoted at £2,800 for the year, a 15% increase from the previous year.
- Action: They used a broker to compare the market.
- Result (illustrative): They found a near-identical policy with another leading provider for £2,150.
With NHS waiting lists remaining a significant concern, private medical insurance (PMI) is a lifeline for many in the UK. As an FCA-authorised broker that has helped arrange over 900,000 policies, WeCovr specialises in helping people find the right cover and, crucially, ensuring they don't overpay for it.
How much you could save by moving to a new provider
The burning question for any policyholder facing a steep renewal price is: "How much could I actually save by switching my private health insurance?" The answer is often substantial.
While individual circumstances vary, it's not uncommon for consumers to achieve savings of 20% to 40% on their annual premium by switching providers. For a policy costing £1,500 per year, this could mean putting between £300 and £600 back into your pocket, without necessarily sacrificing your level of cover. (illustrative estimate)
These savings are possible because the private medical insurance UK market is highly competitive. Insurers often reserve their most attractive rates for new customers, while renewal prices for loyal customers can creep up year after year, a practice sometimes referred to as "price walking."
Let's look at a real-life example:
Case Study: The Henderson Family
- Who: A family of four (parents aged 45 and 43, two children under 10) in Manchester.
- Existing Policy: A comprehensive plan with a major insurer.
- Renewal Premium: Quoted at £2,800 for the year, a 15% increase from the previous year.
- Action: They used a broker to compare the market.
- Result (illustrative): They found a near-identical policy with another leading provider for £2,150.
- Annual Saving (illustrative): £650.
This scenario is far from unique. The key is understanding why your premium is increasing and how to navigate the switching process effectively to unlock these potential savings.
Why Do Private Health Insurance Premiums Increase?
Your renewal notice landing on the doormat can often feel like a shock. Understanding the factors behind the price hike can help you decide whether it's fair or if it's time to look elsewhere.
Premiums are influenced by a combination of personal and market-wide factors.
| Factor | Description | Your Control Level |
|---|---|---|
| Ageing | This is the most significant driver. As we get older, the statistical likelihood of needing medical treatment increases. Most insurers have age bands, and moving into a new one (e.g., from 49 to 50) triggers a notable price jump. | None |
| Medical Inflation | The cost of private medical care—new drugs, advanced diagnostic scans, specialists' fees—rises faster than general inflation (CPI). This rate, often cited by insurers as being between 7% and 10% annually, is passed on to policyholders. | None |
| Your Claims History | If you've made one or more claims in the previous year, your insurer may increase your premium at renewal. They now see you as more likely to claim again in the future. | Low (you can't help being ill) |
| Insurer's Performance | If your insurer has paid out a high volume of claims across its entire customer base, it may apply a general price increase to all policyholders to balance its books. | None |
| Insurance Premium Tax (IPT) | A standard tax set by the UK government, currently at 12% for PMI. Any changes to this rate will directly affect your premium. | None |
As you can see, most of the reasons for premium hikes are outside your direct control. Your only real power lies in your ability to vote with your feet and switch to a provider offering a better value proposition.
The Critical Rule of Private Medical Insurance: Acute vs. Chronic Conditions
Before we delve deeper into switching, it's vital to understand a fundamental principle of all standard UK private health insurance policies.
PMI is designed to cover acute conditions, not chronic or pre-existing ones.
- Acute Condition: A disease, illness, or injury that is likely to respond quickly to treatment and lead to a full recovery. Examples include a hernia, appendicitis, joint pain requiring a replacement, or cataracts.
- Chronic Condition: A disease, illness, or injury that has one or more of the following characteristics: it needs ongoing or long-term monitoring, has no known cure, is likely to recur, or requires palliative care. Examples include diabetes, asthma, high blood pressure, and arthritis.
- Pre-existing Condition: Any condition for which you have experienced symptoms, sought advice, or received treatment before the start date of your new policy.
This is the single most important concept to grasp. If you switch insurers, any conditions you've suffered from in the past will be considered pre-existing and will typically be excluded from your new policy, at least for a set period. We will explore how this works in the next section.
How to Switch Your Private Health Insurance: Understanding Underwriting
Switching isn't as simple as changing your car insurance. Because it involves your health, the process is more detailed. The method of how an insurer assesses your medical history is called "underwriting." When switching, you generally have three main options.
1. Moratorium Underwriting (The "Wait and See" Approach)
This is the most common and straightforward method for new policies and switches.
- How it works: You don't declare your full medical history upfront. Instead, the insurer applies a blanket exclusion for any pre-existing conditions you've had in a set period (usually the last 5 years).
- The "Moratorium" Period: This exclusion can be lifted for a specific condition if you go for a continuous 2-year period on your new policy without experiencing any symptoms, needing treatment, or seeking advice for it.
- Pros: Quick and easy application process. You don't need to dig out old medical records.
- Cons: There can be uncertainty. When you make a claim, the insurer will investigate your medical history to see if it was a pre-existing condition, which can sometimes lead to delays or disputes.
2. Full Medical Underwriting (FMU) (The "Full Disclosure" Approach)
This method involves a more detailed application process but provides greater clarity from day one.
- How it works: You complete a comprehensive health questionnaire, declaring all your past medical conditions. The insurer's underwriting team reviews this information and decides precisely what they will and will not cover.
- The Outcome: You receive a policy certificate with a clear list of any personal exclusions. For example, it might state, "No cover for the investigation or treatment of the right knee."
- Pros: Complete certainty. You know exactly where you stand from the beginning, and claims are often processed faster as the pre-assessment is already done.
- Cons: A long and sometimes intrusive application process. Minor, historic issues could be permanently excluded.
3. Continued Medical Exclusions (CME) (The "Lift and Shift" Approach)
This is a special type of underwriting designed specifically for people who are switching providers. It's often the best option if you have developed conditions while insured on your current policy.
- How it works: Your new insurer essentially agrees to "copy and paste" the underwriting terms from your old policy. This means they will continue to cover conditions that arose while you were with your previous insurer, as long as they were covered under that policy. Any exclusions you had on your old policy will also be carried over.
- The Benefit: It allows you to switch insurers and access a better price without losing cover for conditions that you've developed.
- Availability: Not all insurers offer CME terms, and you usually need to meet certain criteria (e.g., no pending claims or recent treatment). This is where a broker's knowledge is indispensable.
Comparing Underwriting Options for Switchers
| Underwriting Type | Best For | Key Advantage | Key Disadvantage |
|---|---|---|---|
| Moratorium | Healthy individuals with no recent medical issues. | Simple application. | Uncertainty at the point of claim. |
| Full Medical (FMU) | People who want absolute clarity from the start. | No ambiguity about what is covered. | Lengthy application; potential for permanent exclusions. |
| Continued (CME) | Anyone who has developed and claimed for conditions on their current policy. | Preserves cover for existing conditions. | Not all insurers offer it; can be more complex to arrange. |
Engaging with a specialist PMI broker like WeCovr can demystify this process. We can quickly identify which insurers offer CME underwriting and manage the application to ensure a seamless transition, protecting the cover you've built up over time.
A Practical Guide to Saving Money on Your Policy
Beyond switching providers, there are several levers you can pull to manage the cost of your private health cover, whether you are staying or moving.
1. Increase Your Excess
The excess is the amount you agree to pay towards the cost of any claim. For example, if you have a £250 excess and your treatment costs £3,000, you pay the first £250 and the insurer pays the remaining £2,750.
- How it saves you money: A higher excess means you are taking on more of the initial risk, which reduces the insurer's potential payout. They pass this saving on to you in the form of a lower premium.
- Potential Saving: Moving your excess from £100 to £500 could reduce your premium by 10-20%.
2. Review Your Hospital List
Insurers group UK private hospitals into tiers. A comprehensive list including prime central London hospitals (like The Lister or The London Clinic) is the most expensive.
- How it saves you money: If you live outside London and are unlikely to travel there for treatment, you can opt for a reduced hospital list that covers excellent facilities near your home. This can lead to significant savings.
- Potential Saving: Removing central London hospitals can cut premiums by up to 20%.
3. Consider a "Guided" or "Expert Select" Option
Many insurers now offer "guided" consultant options. With these, instead of choosing any specialist you wish, the insurer provides a shortlist of 2-3 pre-approved, high-quality consultants for you to choose from when you need treatment.
- How it saves you money: Insurers have fee arrangements with these specialists, allowing them to control costs more effectively.
- Potential Saving: Opting for a guided consultant list can reduce premiums by a further 15-25%.
4. Introduce a 6-Week Wait Option
This is a popular way to blend the security of PMI with the use of the NHS. If the NHS can treat you for an inpatient procedure within 6 weeks of when it's needed, you agree to use the NHS. If the waiting list is longer than 6 weeks, your private cover kicks in.
- How it saves you money: This significantly reduces the risk for the insurer, as many routine procedures on the NHS have waiting times under this threshold. The saving is passed to you.
- Potential Saving: Can reduce the cost of the inpatient portion of your cover by 25-40%. It's a fantastic way to protect against long waits while keeping costs down.
Wellness and Your Premium: A Virtuous Circle
While insurers don't directly reduce your premium if you have a healthy diet or exercise regularly, many are now actively rewarding healthy behaviour through integrated wellness programmes.
Providers like Vitality and Bupa offer points, discounts, and rewards for activities such as:
- Tracking your daily steps.
- Completing health questionnaires online.
- Going for regular health screenings.
- Logging workouts at partner gyms.
These points can translate into real-world benefits like free cinema tickets, discounted smartwatches, or even a reduction in your renewal premium the following year.
Simple Health Tips for a Better You
Embracing a healthier lifestyle not only feels good but can also indirectly benefit your insurance costs in the long run by reducing your likelihood of needing to claim.
- Mindful Movement: You don't need to run a marathon. The NHS recommends just 150 minutes of moderate-intensity activity a week. A brisk 30-minute walk five days a week is all it takes. It's great for cardiovascular health and stress reduction.
- The Power of Sleep: Aim for 7-9 hours of quality sleep per night. Poor sleep is linked to a host of health problems, including a weakened immune system and high blood pressure. Create a relaxing bedtime routine and put screens away an hour before bed.
- Balanced Plate: Focus on a diet rich in whole foods: fruits, vegetables, lean proteins, and whole grains. This helps maintain a healthy weight and provides the nutrients your body needs to function optimally. As a WeCovr customer, you get complimentary access to our AI-powered nutrition app, CalorieHero, to make tracking your food intake simple and effective.
- Stay Hydrated: Drinking enough water is crucial for energy levels, brain function, and skin health. Aim for 6-8 glasses a day.
By partnering with a forward-thinking organisation like WeCovr, you not only get expert advice on your policy but also access to tools like CalorieHero and potential discounts on other insurance products, such as life or income protection cover, when you take out a PMI policy.
The Risks of Switching: What to Watch Out For
While the savings can be tempting, switching providers is a decision that requires careful thought. Here are the potential pitfalls:
- Losing Cover for Pre-existing Conditions: This is the biggest risk. As discussed, if you switch to a new policy on a Moratorium or FMU basis, conditions you had before the switch will be excluded. A CME switch is the only way to mitigate this, but it's not always available.
- A New Moratorium Period: If you switch using Moratorium underwriting, the 2-year "wait and see" clock resets. A condition that was about to become eligible for cover on your old policy will now be subject to a fresh 2-year waiting period on the new one.
- "New for Old" Isn't Always a Fair Swap: Policies are not all created equal. A cheaper policy might have a more restrictive hospital list, lower outpatient cover limits, or no cover for therapies like physiotherapy. It's crucial to compare the details, not just the headline price.
- Admin Hassle: If not managed properly, the process can be time-consuming, involving paperwork and potentially phone calls with medical underwriters.
This is why going direct to an insurer can be risky. An independent PMI broker's job is to conduct a fair and thorough analysis of the market, presenting you with options that match your current cover level before highlighting where savings can be made without compromising your health security.
Step-by-Step: How to Compare and Switch Effectively
Ready to explore your options? Follow this structured approach.
- Find Your Renewal Documents: Locate the renewal pack from your current insurer. It will detail your new premium, your current level of cover, your underwriting type, and your renewal date.
- Note Down Your "Must-Haves": What's non-negotiable for you? Is it a specific hospital? Access to mental health cover? Unlimited outpatient diagnostics? Make a list.
- Speak to an Independent Broker: This is the most crucial step. A broker like WeCovr works for you, not the insurers. We use our expertise and market knowledge to find the best-value policy for your specific needs. This service comes at no cost to you, as the broker is paid a commission by the insurer you choose.
- Provide Your Details: The broker will ask for your current policy details, your personal information (age, postcode), and your medical history, particularly any conditions that have arisen since you first took out cover.
- Review Your Tailored Comparison: The broker will come back to you with a clear, easy-to-understand comparison of quotes. This will typically include your renewal price versus options from other leading insurers like Bupa, AXA Health, Aviva, and The Exeter. They will clearly explain the differences in cover and the underwriting terms for each.
- Make an Informed Decision: With all the facts at your disposal, you can confidently decide whether to stay, switch, or adjust your current policy.
- Let the Broker Handle the Admin: If you decide to switch, the broker will manage the entire application process for you, ensuring a smooth transition and no gaps in cover.
Thanks to our high customer satisfaction ratings and deep industry partnerships, we make this process seamless and stress-free.
Frequently Asked Questions (FAQ) about Switching Health Insurance
Will my private medical insurance premium go up every year?
Can I switch my health insurance if I have an ongoing claim or am in the middle of treatment?
What is the difference between moratorium and 'Continued Medical Exclusions' (CME) underwriting when switching?
Do I lose all my benefits if I switch my private health cover?
Your Next Step to Lower Premiums
Paying too much for private medical insurance is a common problem, but it's one you don't have to accept. The UK market is competitive, and significant savings are available to those who are willing to explore their options.
By understanding why premiums rise, how the switching process works, and the levers you can pull to reduce costs, you are already in a powerful position. The key is to navigate the market wisely, ensuring you don't sacrifice valuable cover for the sake of a cheaper price.
Don't let loyalty to one insurer cost you hundreds of pounds a year. Let us do the hard work for you.
Take control of your health and your finances. Get a free, no-obligation quote from WeCovr today and discover how much you could save.
Sources
- Department for Transport (DfT): Road safety and transport statistics.
- DVLA / DVSA: UK vehicle and driving regulatory guidance.
- Association of British Insurers (ABI): Motor insurance market and claims publications.
- Financial Conduct Authority (FCA): Insurance conduct and consumer information guidance.
