Switching Health Insurers Pitfalls and How to Avoid Them
With rising premiums a common concern, reviewing your private medical insurance (PMI) is smart financial planning. As FCA-authorised experts in the UK who have helped arrange over 800,000 policies, the team at WeCovr knows that while switching can save you money, it's a path filled with potential pitfalls that could jeopardise your health cover.
WeCovr's expert advice for changing PMI providers safely
Changing your private health cover provider can feel like a simple way to cut costs. You see a cheaper quote online, sign up, and cancel your old policy. Job done? Not quite.
The reality is that switching health insurers is far more complex than changing your car or home insurance. A wrong move can lead to devastating consequences, such as losing cover for conditions you thought were protected. With NHS waiting lists in England standing at 7.54 million cases in early 2025 (based on the latest available NHS England data), having continuous, reliable private cover has never been more critical.
This guide will walk you through the major pitfalls of switching and, most importantly, provide a clear, safe path to changing providers without risking your health and financial wellbeing.
Pitfall 1: Losing Cover for Pre-existing and Chronic Conditions
This is, without a doubt, the single biggest risk when switching PMI policies. It’s a point so crucial that it needs to be understood before you even think about getting a new quote.
A Fundamental Rule of UK Private Medical Insurance: Standard PMI policies are designed to cover acute conditions that arise after you take out the policy. They do not cover chronic conditions or pre-existing conditions.
- Acute Condition: A disease, illness, or injury that is likely to respond quickly to treatment and lead to a full recovery. Think of things like a hernia repair, cataract surgery, or a joint replacement.
- Chronic Condition: A condition that continues for a long time and typically cannot be cured completely, only managed. Examples include diabetes, asthma, arthritis, and high blood pressure. PMI does not cover the routine management of these conditions.
- Pre-existing Condition: Any illness, disease, or injury for which you have experienced symptoms, received medication, advice, or treatment in the years before your policy starts.
When you take out a brand new policy with a new insurer, they will typically exclude any conditions you've had in the past, usually within the last five years.
How New Policies Treat Your Medical History: Underwriting
Insurers use a process called 'underwriting' to decide what they will and won't cover. For new customers, there are two main types:
- Moratorium Underwriting (The most common): The insurer doesn't ask for your full medical history upfront. Instead, they apply a general exclusion for any pre-existing conditions you've had in the five years before the policy started. This exclusion can be lifted for a specific condition, but only if you remain completely symptom-free, and have not needed any treatment, medication, or advice for it, for a continuous two-year period after your policy begins.
- Full Medical Underwriting (FMU): You provide your full medical history via a detailed questionnaire. The insurer's underwriting team then reviews this information and may write to your GP. They will then issue a policy with specific, named exclusions for any pre-existing conditions they decide not to cover.
The Switching Trap: If you simply cancel your old policy and start a new one on a Moratorium or FMU basis, any condition you've claimed for or had symptoms of recently—even something as minor as a niggly knee or occasional indigestion—will now be classed as a pre-existing condition by your new insurer and will be excluded from cover.
The Solution: Continued Personal Medical Exclusions (CPME)
The only safe way to switch insurers without losing cover for your medical history is through a special type of underwriting known as Continued Personal Medical Exclusions (CPME), sometimes called 'protected underwriting' or a 'switch' facility.
With a CPME switch, your new insurer agrees to accept the same underwriting terms you had with your old provider. Essentially, they agree to continue covering the same conditions your old insurer covered. Any exclusions you had on your old policy will be carried over to the new one, but crucially, no new exclusions will be added for conditions that have developed while you were covered by your previous insurer.
| Underwriting Type | How it Works | Best For | Key Risk When Switching |
|---|---|---|---|
| Moratorium | Automatically excludes conditions from the last 5 years. Cover may be gained after 2 years symptom-free. | People with no recent medical history. | Resets the clock. Any conditions developed under your old policy become pre-existing and are excluded. |
| Full Medical Underwriting (FMU) | You declare your full medical history. Insurer lists specific exclusions. | People who want absolute clarity on what is and isn't covered from day one. | Same as Moratorium. New insurer will exclude anything you've had before. |
| Continued Personal Medical Exclusions (CPME) | New insurer inherits the underwriting terms of your old policy. No new exclusions are added for recent conditions. | Anyone switching an existing PMI policy. | None, if done correctly. This is the only safe way to switch. |
Real-Life Example: Sarah's Story Sarah, 48, had been with Insurer A for six years. During that time, she developed a heart palpitation issue which was investigated and monitored under her PMI policy. At renewal, her premium increased by 20%. She found a cheaper deal online with Insurer B, signed up on a moratorium basis, and cancelled her old policy.
Six months later, her palpitations returned. When she tried to claim, Insurer B declined it, stating it was a pre-existing condition as it had occurred before her policy with them began. By switching incorrectly, Sarah had lost cover for her most significant health concern and was now facing a long NHS wait or a hefty private bill. Had she used a broker to arrange a CPME switch, her new insurer would have been obliged to cover it.
Pitfall 2: Falling for a 'Cheaper' Premium with Hidden Downsides
A significantly lower premium should be a red flag, not just a reason to celebrate. While some savings are possible, a dramatic price drop usually means you are sacrificing important elements of your cover.
Insurers calculate premiums based on risk factors like your age, location, and claims history. To offer a much lower price, they have to be cutting something from the policy.
Common Sacrifices Made for a Lower Price:
- Higher Excess: The excess is the amount you pay towards a claim. A policy with a £500 or £1,000 excess will be much cheaper than one with a £100 excess. Are you prepared to pay that much if you need to claim?
- Reduced Hospital List: The most comprehensive policies give you access to almost any private hospital in the UK. Cheaper policies use restricted hospital lists, which might exclude the top-tier hospitals in London or even the most convenient private facility in your local area.
- Limited Outpatient Cover: Outpatient cover pays for consultations and diagnostic tests that don't require a hospital bed. A cheap policy might have a very low limit (e.g., £500) or no outpatient cover at all. This means if you need an MRI scan (costing £500-£1,000) or multiple specialist consultations, you could end up paying for them yourself.
- Capped Cancer Care: Full cancer cover is a cornerstone of good PMI. Some cheaper plans may place limits on the types of treatments covered, cap the financial benefit for cancer drugs, or exclude certain advanced therapies.
- Introductory Discounts: Many direct-to-consumer offers come with a large year-one discount. This makes the initial premium look very attractive, but the discount vanishes at the first renewal, often leading to a shocking price hike that puts you right back where you started.
An expert broker, like WeCovr, can dissect a quote and show you exactly what you're getting for your money, ensuring you don't unknowingly trade crucial benefits for a small short-term saving.
Pitfall 3: Failing to Compare Policies on a 'Like-for-Like' Basis
It's easy to assume all "comprehensive" policies are the same. They are not. The terminology and level of benefits can vary dramatically between providers. When comparing your renewal offer with a new quote, you must meticulously check the detail.
Your 'Like-for-Like' Comparison Checklist:
- Core Cover: Does it cover in-patient and day-patient treatment in full?
- Hospital List: Is the list identical? Check if your local private hospital and any preferred central London hospitals are on both lists.
- Outpatient Limit: Is the financial limit the same? Check if there are caps on the number of consultations.
- Cancer Cover: Is it full cover? Does it include palliative care, monitoring, and new/experimental drugs?
- Therapies: What is the limit for physiotherapy, osteopathy, etc.? Is a GP referral always required?
- Mental Health: How is mental health covered? Is it limited to a certain number of outpatient sessions or a financial cap for inpatient care?
- Excess: Is the excess amount the same? Crucially, is it applied 'per claim' or 'per policy year'? A 'per year' excess is usually better value.
- No Claims Discount (NCD): Do both insurers use a similar NCD scale? A new insurer might offer to 'match' your NCD level, but their scale might be less generous, meaning your premium could rise more steeply after a claim.
Example of Two Insurers' NCD Scales
| NCD Level | Insurer A Discount | Insurer B Discount |
|---|---|---|
| Level 10 (Max) | 75% | 70% |
| Level 9 | 70% | 65% |
| Level 8 | 65% | 60% |
| ...after 1 claim | Drop 3 levels | Drop 3 levels |
| New Level | Level 7 (60%) | Level 5 (50%) |
As you can see, even if both insurers drop you three levels after a claim, the resulting discount with Insurer B is significantly lower. This is a nuance that is easily missed but can have a big impact on future premiums.
Pitfall 4: Getting the Timing Wrong and Creating a Gap in Cover
Timing is everything. You cannot simply cancel your old policy today and start a new one tomorrow. A safe switch requires careful planning.
- Don't wait until the last minute. Your renewal pack usually arrives about 4-6 weeks before your policy expires. This is the perfect time to start exploring your options.
- Never cancel your existing policy until your new policy is fully accepted and in force. The application process for a CPME switch can take a couple of weeks. The new insurer needs to get documentation from your old provider. If you cancel your old policy before the new one is confirmed, you could be left uninsured. If a medical issue arises during this gap, you will not be covered by either insurer.
- Understand the 'Cooling-Off' Period. Once your new policy is live, you have a 14-day cooling-off period during which you can cancel without penalty. Use this time for a final review of the documents to ensure everything is exactly as you expect. You should only give notice to cancel your old policy once you are happy and past this initial period.
The Safe Switching Process: A Step-by-Step Guide by WeCovr
Avoiding these pitfalls is straightforward when you follow a structured process and seek expert advice. Here is the proven method for switching your PMI provider safely.
Step 1: Analyse Your Renewal Invitation
When your renewal documents arrive, don't just look at the new premium. Read the enclosed literature carefully. Has the insurer changed any terms? Have they altered the hospital list or reduced a benefit? Your current provider is counting on you simply accepting the new price without checking the details.
Step 2: Define Your Current and Future Needs
Has your situation changed since you first took out the policy?
- Have your children left home, meaning you can remove them from the policy?
- Have you moved house? Your postcode affects your premium, and your local hospital options may have changed.
- Are you thinking about starting a family? You might want to enhance your policy with benefits relevant to pregnancy and childbirth.
- Has your financial situation changed, meaning a different excess level might be more appropriate?
Step 3: Engage a Specialist Independent Broker
This is the most important step. An independent, FCA-authorised broker like WeCovr works for you, not the insurance company.
- Expertise: We understand the complex market and the nuances of each provider's policies.
- Market Access: We can compare policies from across the whole market, not just the handful you see on a comparison website.
- CPME Negotiation: Crucially, we have the expertise and established processes to arrange a CPME switch. This is not something that can typically be done via a standard online quote form.
- No Cost to You: Our service is free. We are paid a commission by the insurer you choose, which is already built into the price of the policy, so you don't pay a penny more for our expert guidance.
With a high customer satisfaction rating and a deep understanding of the private medical insurance UK market, we handle the entire process for you.
Step 4: The Application and Underwriting
Your WeCovr advisor will complete the application forms with you and submit them to the chosen insurer on a CPME basis. The new insurer will then work with us to obtain the necessary 'certificate of transfer' from your old provider to confirm your underwriting history. This ensures a seamless transition of your cover.
Step 5: Finalising the Switch
Once the new insurer has formally accepted your application and issued your policy documents, we will help you review them. Only when you are 100% happy should you contact your old provider to cancel your policy at its renewal date. This guarantees you are never without cover.
Beyond Premiums: Wellness, Health, and Added Value
Modern private health cover is about more than just paying for treatment when you get ill. The best PMI providers now include a wealth of benefits designed to keep you healthy and provide convenient access to everyday healthcare. When switching, don't forget to compare these valuable extras.
- Digital GP Services: 24/7 access to a GP via phone or video call is now a standard feature. This is incredibly convenient and can help you get advice and prescriptions quickly without waiting for an NHS appointment.
- Mental Health Support: Many policies now offer access to counselling or therapy sessions without needing a GP referral, as well as digital tools like mindfulness apps.
- Wellness Programmes: Insurers often reward healthy living. You can get discounts on gym memberships, fitness trackers, and even healthy food.
Making small, consistent efforts in your daily life can have a huge impact on your long-term health, reducing your reliance on medical treatment.
- Sleep: Aim for 7-9 hours of quality sleep per night. It's as crucial as diet and exercise for your physical and mental health.
- Diet: A balanced diet rich in fruits, vegetables, and whole grains can reduce your risk of many chronic conditions.
- Activity: The NHS recommends at least 150 minutes of moderate-intensity activity a week. This could be a brisk walk, a cycle ride, or a swim.
At WeCovr, we believe in proactive health. That's why clients who purchase PMI or Life Insurance through us receive complimentary access to our AI-powered nutrition app, CalorieHero, to help them manage their diet and achieve their health goals. Furthermore, our clients often benefit from discounts on other insurance products, providing even greater value.
Are You Ready to Switch Safely?
Switching your health insurance provider can be a great move if it means getting better value or a policy that's more suited to your needs. But it must be done with care, knowledge, and expert guidance.
By understanding the critical importance of continued cover for your medical history and comparing policies on a true like-for-like basis, you can avoid the pitfalls that catch so many people out. The safest, simplest, and most effective way to do this is to partner with a specialist broker.
Can I switch my private medical insurance if I'm currently undergoing treatment?
Do I need to declare all my medical history again to switch my health insurance?
Will switching my PMI provider always save me money?
The UK private health insurance market is complex, but you don't have to navigate it alone. Let WeCovr's team of friendly, expert advisors do the hard work for you. We'll compare the top PMI providers, ensure your cover is protected, and find the best policy for your needs and budget.
Contact WeCovr today for a free, no-obligation review of your private medical insurance. Switch smarter, not harder.
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.
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