How to reduce the cost of private health insurance
Premiums vary between insurers and depend on the cover you choose. Comparing quotes and adjusting your options may reduce the cost, but check whether a cheaper policy changes your benefits, treatment limits or exclusions.
Private medical insurance mainly pays for eligible acute treatment. Pre-existing conditions, routine management of chronic conditions and emergency care are commonly excluded or restricted. Having cover does not affect your right to NHS treatment. If you or your partner can join a workplace scheme, compare its benefits and tax cost, and check what happens when the job ends.
Compare policies, not just prices
Look beyond the headline premium at outpatient limits, cancer benefits, mental health cover, hospital access, excesses and exclusions. Premiums can rise with age, medical costs, claims and changes to discounts, so an introductory price is not a reliable guide to long-term cost.
An FCA-authorised broker, or an appointed representative of an authorised firm, can explain your options. Ask which insurers they consider, whether they give advice and whether they charge a fee. On the FCA Register, check the firm's permissions and contact details, not just its name, to guard against clone firms.
Cashback sites such as Quidco and TopCashback sometimes list health insurers, so check current listings. Cashback is not guaranteed:
- It depends on your purchase being tracked and validated, and you may need to keep the policy for a minimum period.
- Existing customers, unapproved discount codes or certain purchase routes may be excluded.
- Confirmation can take months, so keep a record of your purchase.
Compare the final premium and cover rather than the cashback amount. Some insurers also offer wellness rewards, such as discounted gym membership. These are usually perks rather than premium reductions, may need qualifying activity or payments, and only help if you use them.
Your situation may be slightly different. ask a question below ↓ and our editorial team will reply with our advice.
Adjust your policy options
- A higher excess: paying more towards treatment yourself usually lowers the premium. Check whether it applies per claim or per policy year, and separately to each person covered.
- A six-week option: for specified treatment, you use the NHS if it can treat you within the policy's six-week timeframe. Check which benefits this covers and how the insurer assesses availability.
- A restricted hospital list: covering fewer hospitals can cost less, but check that suitable ones are near you.
- Guided consultant choice: the insurer selects or approves your specialist after an eligible referral.
- Limited outpatient cover: this lowers the premium, but you may need to use the NHS or pay yourself for consultations and tests.
- Optional extras: consider which benefits, such as therapies, you could afford to limit or pay for yourself.
- Paying annually: some insurers charge less for paying upfront.
You will usually choose an underwriting type. With full medical underwriting, you disclose your medical history and any exclusions are set at the start. Moratorium underwriting generally excludes recent pre-existing conditions at first and may cover them later if the policy's conditions are met. Definitions vary, so a condition does not automatically become covered after a set time.
Review your renewal
Premiums often rise each year. A no-claims discount can help, but a rising base premium may outweigh it, so compare the actual renewal price and consider fresh quotes. Do not cancel existing cover until a replacement policy is accepted and its terms confirmed, as a new insurer may exclude conditions your current policy covers. Continued underwriting may be available but is not automatic.
Insurance Premium Tax is normally included in the quoted premium. Employer-paid private medical insurance is normally a taxable benefit, though exceptions apply to some employer-funded health services. GOV.UK has current rates and rules.
If you have a complaint, let the insurer try to resolve it first. If you are unhappy with its final response, or have none after eight weeks, you can usually go to the Financial Ombudsman Service, generally within six months of that response. MoneyHelper offers free, impartial guidance.
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