Renewing vs Switching Private Medical Insurance When to Move On
As an FCA-authorised broker that has helped arrange over 800,000 policies, we at WeCovr know that the annual renewal letter for your private medical insurance can bring a sense of dread. Understanding whether to renew or switch your private health cover is one of the most important financial health decisions you’ll make this year in the UK. This guide will empower you to choose wisely.
How to decide whether to stick with an insurer or seek better value elsewhere
That familiar brown envelope has arrived. You open it, and your heart sinks a little. Your private medical insurance premium has increased, perhaps significantly. The immediate question is: do you simply accept the new price and renew, or is it time to look for a better deal?
The decision isn't just about the price on the page. It's a complex balance of cost, continuity of cover, your changing health needs, and the often-misunderstood world of insurance underwriting. Making the wrong move could leave you without cover when you need it most, while staying put could mean you're paying far too much for a policy that no longer fits.
This comprehensive guide will walk you through every factor, giving you the clarity and confidence to decide whether to stick or switch.
Why Do Private Health Insurance Premiums Increase at Renewal?
Understanding why your premium has gone up is the first step in assessing whether the increase is fair. It's rarely a single reason, but a combination of factors.
| Factor | Description | Typical Impact on Premium |
|---|---|---|
| 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 automatically triggers a price rise. | High |
| Medical Inflation | The cost of private healthcare (new drugs, advanced scanning technology, specialist fees, hospital running costs) rises much faster than general inflation (CPI). In recent years, medical inflation has often been between 8% and 10% annually. | High |
| Your Claims History | If you've made a claim, you will likely see a reduction in your No-Claims Discount (NCD), leading to a higher premium. Even if you haven't claimed, your price can still rise due to the other factors. | Variable (can be very high) |
| Insurance Premium Tax (IPT) | A government tax on all general insurance policies, including PMI. The standard rate is currently 12% of your premium. If the base premium goes up, the amount of tax you pay also increases. | Medium |
| Insurer's Performance | If your insurer has experienced a higher-than-expected number of claims from its overall customer base, it may spread this cost across all policyholders to remain profitable. | Low to Medium |
It's a common misconception that an insurer is "punishing" you with a price hike. In reality, these factors, especially age and medical inflation, create a powerful upward pressure on premiums for everyone. An annual increase of 10-20% is not uncommon, even if you haven't claimed.
The Case for Sticking: When Renewing Your PMI Makes Sense
While the temptation to switch for a cheaper price is strong, there are compelling reasons to stay with your current insurer. This is especially true if your health has changed since you first took out the policy.
1. Continuity of Cover is King
This is the single most important reason to consider renewing. Private medical insurance is designed to cover acute conditions that arise after your policy begins. It does not cover pre-existing or chronic conditions.
Real-Life Example: Sarah took out a policy with Insurer A three years ago. Last year, she had knee pain, saw a specialist, and had some investigative scans. The issue resolved itself. Now, at renewal, she sees a cheaper quote from Insurer B.
If Sarah switches to Insurer B, her knee problem will now be classed as a pre-existing condition. Insurer B will not cover her for any future issues related to that knee. If she stays with Insurer A, she remains fully covered for her knee, as the condition arose while she was already a customer.
2. The Moratorium "Clock" Keeps Ticking
Many people buy policies on a 'Moratorium' (MORI) underwriting basis. Here’s how it works:
- The insurer won't cover you for any condition you've had symptoms, medication, or advice for in the 5 years before the policy starts.
- However, if you then go for a continuous 2-year period after your policy starts without any symptoms, medication, or advice for that condition, it may become eligible for cover.
By staying with your insurer, you don't reset this 2-year clock. If you switch, the clock starts all over again with the new provider, meaning you could lose cover for conditions that were on the verge of being covered.
3. Simplicity and Peace of Mind
Let's be honest: life is busy. Reviewing insurance policies can feel like a chore. Renewing is the simplest path. It requires no new forms, no medical questionnaires, and no uncertainty about what is and isn't covered. If your health is complex, the peace of mind that comes with uninterrupted cover can be worth the extra cost.
The Case for Switching: When to Seek a Better Deal
Loyalty doesn't always pay. Insurers often reserve their most competitive prices for new customers, and a significant price hike at renewal should always be a trigger to review your options.
1. Your Renewal Increase is Unacceptably High
If your premium has jumped by 30%, 40%, or even more, and you haven't made a large claim, it's a clear signal to shop around. Another insurer might have a different approach to pricing for your age group or postcode, potentially saving you hundreds of pounds.
2. Your Needs Have Changed
The policy you bought five years ago as a single person might not be right for you now that you have a family. Life events that should prompt a review include:
- Getting married or having children.
- Children leaving home.
- A change in income or budget.
- Developing new health priorities (e.g., more focus on mental health or physiotherapy).
- Moving to a new area with different hospital choices.
3. Poor Customer Service or Claims Experience
Your relationship with an insurer is tested when you need to make a claim. If the process was difficult, communication was poor, or you felt the outcome was unfair, that's a powerful reason to move on. A cheaper policy is no good if the provider is impossible to deal with.
4. Better Products Are Now Available
The private medical insurance UK market is constantly evolving. New policies are launched with innovative benefits, such as:
- Enhanced mental health support.
- Virtual GP services available 24/7.
- Integrated wellness programmes that reward healthy living.
- Different hospital lists or outpatient options.
You might find a new policy that offers more relevant benefits for a similar or even lower price than your renewal.
The Critical Factor: Underwriting and Pre-existing Conditions
This is the most crucial, and most misunderstood, aspect of switching. Get this wrong, and your new policy could be worthless.
Let's be absolutely clear: Standard UK private medical insurance is for acute conditions (illnesses that are short-term and curable, like a hernia or cataracts). It is not designed to cover chronic conditions (long-term illnesses that can be managed but not cured, like diabetes or asthma) or pre-existing conditions you had before you joined.
When you switch insurers, you have to go through underwriting again. This means the new provider will assess your medical history to decide what they will and will not cover.
Types of Underwriting When Switching
| Underwriting Type | How it Works | Pros | Cons |
|---|---|---|---|
| Full Medical Underwriting (FMU) | You complete a detailed health questionnaire, declaring your full medical history. The insurer then gives you a list of specific exclusions. | Clarity. You know from day one exactly what is not covered. | Lengthy process. Any past issue, no matter how minor, could be permanently excluded. |
| Moratorium (MORI) | No initial health questionnaire. The policy automatically excludes anything you've had symptoms of or treatment for in the last 5 years. | Quick and simple. Good for people with a clean bill of health. | Uncertainty. You may not be sure if an old condition is covered until you try to claim. Switching resets the 2-year "clear" period. |
| Continued Medical Exclusions (CME) / Switch | This is a special option only available when switching. The new insurer agrees to take on the same terms as your old policy. Any exclusions you had on your old policy are carried over. | Maintains continuity of cover. Ideal for those who have developed conditions with their old insurer. | Not all insurers offer this. Can sometimes be more expensive. Requires guidance from a broker. |
The Golden Rule of Switching: If you have developed any new medical conditions, had symptoms, or received treatment or advice for anything while on your current policy, do not switch without expert advice. Using a "Continued Medical Exclusions" basis through a broker like WeCovr is often the only safe way to move.
A Step-by-Step Guide to Reviewing Your PMI Policy
Don't just auto-renew. Take control with this simple 6-step process.
Step 1: Scrutinise Your Renewal Notice Look beyond the headline price. Check:
- The percentage increase from last year.
- Any changes to your No-Claims Discount.
- Any changes to the policy terms, benefits, or hospital list.
Step 2: Re-evaluate Your Personal Needs Ask yourself:
- Has my health status changed?
- Has my family situation changed?
- Is my budget different this year?
- What benefits did I actually use or value last year?
Step 3: Consider "Downgrading" with Your Current Insurer Before you jump ship, call your current insurer (or your broker) and ask if you can lower your premium. Common ways to do this include:
- Increasing your excess: Agreeing to pay a larger amount towards the first claim of the year (e.g., increasing from £100 to £500) can significantly cut your premium.
- Adding a "6-Week NHS Wait" option: This means if the NHS can treat you for an inpatient procedure within 6 weeks, you use the NHS. If the wait is longer, your private cover kicks in. This offers huge savings.
- Reducing your hospital list: Opting for a more restricted list of hospitals can lower the cost. Check if your preferred local private hospital is still included.
- Limiting outpatient cover: Capping the value of consultations and diagnostic tests before a hospital admission is another effective cost-cutter.
| Policy Tweak | Potential Premium Saving | Key Consideration |
|---|---|---|
| Increase Excess to £500 | 15-25% | Can you comfortably afford to pay this amount if you claim? |
| Add 6-Week NHS Option | 20-30% | Are you happy to use the NHS if it's timely? This undermines the "queue-jumping" benefit for some procedures. |
| Reduce Hospital List | 10-20% | Does the new list still provide good local options for you? |
| Cap Outpatient Cover | 10-15% | Diagnostic tests can be expensive; a low cap could leave you with a shortfall. |
Step 4: Get a Market Comparison This is where you see what else is out there. You could spend hours getting quotes from individual insurers, or you could do it the smart way. Use an independent PMI broker.
Step 5: Use an Expert Broker Like WeCovr A specialist broker works for you, not the insurance companies. At WeCovr, we provide a whole-of-market review, comparing policies from leading UK providers. Our expert advisors understand the nuances of underwriting and can guide you on the safest way to switch, often finding "Continued Medical Exclusions" terms that aren't available to the public. This service comes at no cost to you.
Step 6: Make an Informed Decision With a clear view of your renewal offer, potential tweaks, and the best new quotes from the market, you can now make a decision based on value, not just price.
How an Expert PMI Broker Like WeCovr Can Help
Navigating the renewal maze can be daunting. An independent broker is your expert guide and advocate.
- Market-Wide Access: We compare dozens of policies from a huge panel of insurers, including specialist providers you might not find on your own.
- Underwriting Expertise: This is our greatest value. We can assess your medical history and advise whether it's safe to switch and on what basis (MORI, FMU, or CME), preventing disastrous gaps in your cover.
- Time and Hassle Saved: We do all the research, form-filling, and chasing, presenting you with a clear, simple summary of your best options.
- No Extra Cost: We are paid a commission by the insurer you choose, so our advice and support are completely free for you. The price is the same, or often better, than going direct.
- Annual Review Service: We don't just help you once. We'll be there every year at renewal to ensure you're always on the best possible policy for your needs.
- Trusted and Rated: As an FCA-authorised firm with high customer satisfaction ratings, we've helped over 800,000 clients find the right cover.
As a WeCovr client, you also get complimentary access to our AI-powered diet and calorie tracking app, CalorieHero, and benefit from discounts on other insurance products, like life or income protection cover, helping you protect your health and wealth in one place.
Beyond Insurance: Proactive Steps for a Healthier Life
While insurance is there for when things go wrong, the best strategy is to invest in your health to reduce the chances of needing to claim in the first place. A healthier lifestyle can protect your no-claims discount and contribute to more stable long-term premiums.
- Nourish Your Body: Focus on a balanced diet rich in whole foods—fruits, vegetables, lean proteins, and whole grains. Staying hydrated is equally important. Small, sustainable changes are more effective than drastic diets.
- Stay Active: The UK Chief Medical Officers recommend at least 150 minutes of moderate-intensity activity (like a brisk walk or cycling) or 75 minutes of vigorous-intensity activity (like running or tennis) a week. Find an activity you enjoy to make it a habit.
- Prioritise Sleep: Aim for 7-9 hours of quality sleep per night. A consistent sleep schedule, a dark and cool room, and avoiding screens before bed can dramatically improve your physical and mental health.
- Manage Stress: Chronic stress impacts your immune system. Practice mindfulness, meditation, or simply take time for hobbies you love. Many PMI policies now include access to mental health support lines – use them if you need to.
Some insurers offer rewards programmes that provide discounts on gym memberships, fitness trackers, and healthy food, actively encouraging you to look after your wellbeing.
Will my private medical insurance premium always go up every year?
Can I switch private health insurance if I have a pre-existing condition?
What is a no-claims discount (NCD) and how does it work?
Is it cheaper to use a PMI broker like WeCovr than going direct to an insurer?
Ready to Find Out if You Can Get a Better Deal?
Don't let your renewal roll over without checking your options. A 10-minute chat with one of our expert advisors could save you hundreds of pounds or find you a policy with far better benefits.
[Get Your Free, No-Obligation PMI Quote from WeCovr Today]
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!