7 ways to save money on private medical insurance

The number of people with private medical insurance (PMI) in the UK reached 4.7 million at the end of 2023 – the highest level of coverage since 2008. 

That's according to a recent report by LaingBuisson, the healthcare market intelligence firm. This rise in coverage reflects a growing demand for private healthcare, but how can you ensure you get the best policy for you at the right price? We explain.

Please note that the information in this article is for information purposes only and does not constitute advice. Please refer to the particular terms and conditions of a provider before committing to any financial products

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1. Make the most of health rewards

Some insurers don’t just cover your health, they also reward you for looking after it. If you’re able to maintain an active lifestyle, this could reduce the cost of your renewal.

Aviva’s 'MyHealthCounts' programme offers up to 15% off your renewal if you complete a health questionnaire assessing factors such as BMI, cholesterol, and lifestyle choices.

Vitality’s reward scheme takes a fitness-first approach, linking your premium discounts to your activity levels. The more steps you take, gym visits you complete, or workouts you log with a smartwatch, the greater your savings. 

If you already keep fit or need a little extra motivation, these schemes turn healthy habits into financial rewards.

• Find out more: best and worst gyms

2. Take advantage of additional perks

Many policies come with perks that can help you save on fitness, healthcare, and even entertainment. 

While these won’t lower your premium directly, they can help you cut costs elsewhere.

• Bupa includes a free annual dental check-up and a £300 allowance for treatments such as crowns and fillings.
• Vitality offers 50% off gym memberships at Virgin Active and PureGym, plus free weekly drinks at Caffè Nero and monthly cinema tickets at Vue or Odeon. 
• WPA and Axa Health offer up to 40% off gym memberships.

Find out more: private medical insurance perks: what's on offer and are they worth it?

3. Think carefully about your level of cover

Health insurance policies have lots of add-ons, and it’s easy to feel overwhelmed by all the extras on offer. Figure out what you actually need before you start comparing policies.

To find the right balance between cover and cost, ask yourself:

• Do I want outpatient cover? Basic policies only cover inpatient treatment (when you’re admitted to a hospital). Reducing or removing outpatient cover could save you hundreds on your annual premium.
• How quickly do I want to see a specialist? Some policies allow you to book private appointments immediately, while others require a GP referral first. The latter can lower costs but adds an extra step before you can receive treatment.
• What about pre-existing conditions? These are health issues you already have when you apply. While insurers usually won’t cover them, they may still offer you a policy at a higher premium.
• Which hospitals do I want access to? Most insurers have tiered hospital lists, with bigger networks increasing the cost. If you don’t need access to top private clinics, choosing a more restricted hospital list could make your premium cheaper.
• Do I want full cancer cover? Many policies offer comprehensive private cancer treatment, but some allow you to scale back coverage so it only applies if you need drugs or treatments that are unavailable on the NHS.

Find out more: best private health insurance 2025

4. Consider excesses, co-payments and wait periods

You can lower your premiums by adding a higher excess – just make sure you can afford to pay it if you need to claim. Generally speaking, the higher the excess, the lower your premium.

A co-payment works slightly differently. Instead of a fixed excess, you pay a percentage of each claim (say 10% or 15%) up to a cap (say £1,000). This reduces your premium while preventing you from facing unlimited costs.

Another option is an NHS wait period, where your policy only covers private treatment if the NHS can’t provide it (usually within six weeks). 

5. Check for sign-up offers

When you take out PMI, some comparison sites offer cashback or vouchers as an extra incentive. 

While these shouldn’t be the main reason for choosing a policy, they can be a nice extra saving. For example, Axa Health recently offered a £100 M&S gift card for people purchasing a plan. 

It’s worth checking insurer websites and comparison platforms to see what’s available at the time you apply.

6. Don't rush to switch providers

Unlike car or home insurance, switching private health insurance isn’t always a quick fix to save money. While a cheaper deal elsewhere might be tempting, it’s important to check what you’re actually getting before making the move.

If your premium has gone up and you’re eyeing a better price, look beyond the numbers. Some insurers may not carry over cover for existing medical conditions, meaning you could lose protection for something that’s currently included. A lower premium won’t mean much if it leaves you paying out of pocket for treatment later.

Navigating the fine print can be tricky, so if you’re unsure, it might be worth consulting an adviser or broker to make sure you're not swapping savings for hidden costs. The right switch could save you money, but the wrong one could cost you more in the long run.

• Find out more: is private health insurance worth it? 

7. Speak to a broker for help

Private health insurance can be complex, especially if you have existing medical conditions or need specialist cover. Speaking to a broker can help you find the right policy without overpaying or missing important details.

To find a trusted broker, check out the British Insurance Brokers’ Association (Biba) or the Association of Medical Insurers and Intermediaries (AMII) or use the service provided by LifeSearch.

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