Your renewal letter just arrived. The premium has gone up again.
Sound familiar? It happens to most people with private health insurance. Each year, the price creeps up – sometimes by 5%, sometimes by 25% or more. After a few years, you’re paying significantly more than when you started, often for exactly the same cover.
The instinct is to accept it and move on. But that’s usually a mistake.
Switching providers – or even just negotiating with your current insurer – can save you hundreds of pounds a year. And if you do it properly, you won’t lose any of your existing cover.
This guide shows you how.
Why Does the Premium Keep Increasing?
Before we talk about saving money, it helps to understand why the price goes up. Several factors are at play:
Your age
Every year you’re older, you’re statistically more likely to claim. Insurers price this in. There’s nothing you can do about this one.
Medical inflation
The cost of private healthcare rises faster than general inflation. New treatments, better drugs, more expensive equipment, advances in cancer care – all of this pushes up what insurers pay out, which gets passed on to you.
Your claims history
If you’ve claimed in the past year, your premium may increase more than average. Some insurers also adjust your no-claims discount.
Insurance Premium Tax
The government charges 12% IPT on all health insurance premiums. Any increase in this tax directly affects what you pay.
Your insurer’s pricing strategy
Some insurers offer competitive rates to win new customers, then increase premiums more aggressively at renewal, hoping you won’t switch. This is called “price walking” and it’s common in insurance.
The combination of these factors means loyal customers often pay more than new customers for equivalent cover. That’s not fair, but it’s how the market works.
How Much Can You Actually Save?
This varies depending on your circumstances. But savings of 20% to 40% are not uncommon, especially if you’ve been with the same provider for several years and have never shopped around.
To give you a sense:
| Scenario | Potential Saving |
| Been with same insurer 3+ years, never claimed | 20–40% |
| Claimed recently but healthy now | 10–20% |
| Already on a competitive deal | 5–10% |
The older you are and the longer you’ve been with one insurer, the more likely you’re overpaying.
The Golden Rule: Never Cancel Before You’re Covered
Before we go further, one critical point: never cancel your existing policy until your new policy is confirmed and active.
If there’s a gap in your cover – even a single day – you could lose protection for conditions you’ve previously claimed for. This is extremely important.
The process should be:
- Get quotes from other insurers
- Apply for your preferred new policy
- Receive confirmation that you’re accepted
- Only then cancel your old policy
- New policy starts the day after old policy ends
Healthplan are a specialist broker and can manage this timing for you to ensure there’s no gap.
What Is CPME (And Why It Matters)
Here’s the most important concept to understand when switching: Continued Personal Medical Exclusions (CPME).
When you switch health insurance providers, any condition you’ve previously claimed for could become excluded on a new policy. That would be a disaster if you have an ongoing health issue.
CPME protects you. It means:
- Your existing exclusions transfer to the new policy (no worse, no better)
- Conditions you’ve already been covered for remain covered
- You don’t start again with a fresh moratorium period
To qualify for CPME, you typically need to:
- Have no gap between your old policy ending and new one starting
- Provide your new insurer with your latest policy certificate
- Switch to a policy with equivalent or better benefits
- Meet the switch criteria
Most major insurers offer CPME: Bupa, AXA, Aviva, Vitality, WPA, and others. Healthplan can confirm which insurers will accept you on CPME terms.
Other types of underwriting include moratorium/continued moratorium, underwritten, CME (Continued medication exclusions) and MHD (Medical history disregarded)
Step-by-Step: How to Get a Better Deal
Step 1: Dig out your documents
Find your current policy schedule and renewal notice. Note down:
- Current premium (monthly and annual)
- Level of cover (comprehensive, intermediate, basic)
- Excess amount
- Outpatient limits
- Hospital list (local, guided, extended, full)
- Any exclusions listed
This is your benchmark for comparing quotes.
Step 2: Start early
Don’t wait until the day before renewal. Begin looking 4–6 weeks ahead. This gives you time to compare properly without feeling rushed.
Step 3: Get comparison quotes
You have two options:
Go direct to insurers – Time-consuming, but possible. You’ll need to contact each insurer separately and compare quotes manually.
Use an independent broker – Much easier. A broker compares the whole market, understands the nuances of each policy, and can manage the switch on CPME terms for you. This doesn’t cost you anything – brokers are paid by insurers.
Step 4: Compare like-for-like
When you get quotes, make sure you’re comparing equivalent cover:
- Same excess level
- Same hospital list (or equivalent)
- Same outpatient limits
- Same mental health cover
- Same therapies cover
A policy that looks cheaper might have lower benefits. Check the details.
Step 5: Consider adjustments
If your renewal is too expensive, you might also consider:
- Increasing your excess (higher excess = lower premium)
- Switching to a guided hospital network (can save 10–25%)
- Reducing outpatient limits (can save 5-30%)
- Removing cover you don’t use
A good broker will model these options for you.
Step 6: Negotiate with your current insurer
Here’s something most people don’t realise: you can negotiate.
If you’ve found a better deal elsewhere, call your current insurer and tell them. Ask if they can match or beat it. Many insurers have retention teams with discretion to offer better rates to customers who might leave.
The worst they can say is no. If you don’t ask, you don’t get.
Step 7: Make the switch (or stay)
If another insurer offers better value, switch on CPME terms. If your current insurer matches the price, you might prefer to stay – less hassle, continuity of service.
Either way, you’ve now got the best deal available.
When NOT to Switch
Switching isn’t always the right move:
Mid-treatment
If you’re currently receiving treatment or have an active claim, don’t switch. Complete your treatment first. Insurers may not accept a switch on CPME terms while there’s an ongoing claim.
Very recently claimed for something significant
Some insurers are cautious about accepting customers who’ve just had major treatment. You might get a better deal waiting until next renewal.
Your current deal is already competitive
Sometimes you’re already on a good rate. If quotes elsewhere aren’t significantly cheaper, the hassle of switching might not be worth it.
What About No-Claims Discounts?
Many insurers offer no-claims discounts (NCD) that build up over time. You might worry about losing this if you switch.
Good news: most insurers will match your existing NCD level when you switch, or offer an equivalent discount. Ask specifically about this when comparing quotes.
A Real Example
David, 54, from Surrey
David had been with the same insurer for 8 years. His renewal came through at £142 per month – up 12% from the previous year.
He asked a broker to compare quotes. Within a week, he had three alternatives:
- Insurer A: £98/month (same cover, CPME terms)
- Insurer B: £108/month (slightly better mental health cover)
- Insurer C: £89/month (guided network instead of full choice)
David chose Insurer A – saving £528 per year for equivalent cover. His existing exclusions transferred across, and there was no gap in protection.
That’s £528 back in his pocket, every year, for about 30 minutes of his time.
The Bottom Line
Health insurance renewal doesn’t have to mean accepting a higher price. The market is competitive, and insurers want your business.
If you’ve been with the same provider for more than a couple of years, there’s a good chance you’re paying more than you need to. A quick comparison could save you hundreds, or even thousands, of pounds – without losing any of your existing cover.
Don’t just accept the renewal. Shop around.
We Can Help
At Healthplan, we compare quotes across all the major insurers and handle the switch on CPME terms if you decide to move.
It costs you nothing – insurers pay our fee, and you pay the same premium as going direct.
If you’ve got a renewal coming up (or even if you just want to check you’re on a fair rate or have your benefits fully explained to you), get in touch. We’ll tell you honestly whether there’s a better deal available.
Call us: 020 3039 3959
Email: [email protected]
Online: healthplan.co.uk
Sources
- CPME switching process: Bupa, AXA, Aviva, WeCovr, 2025
- Savings estimates: WeCovr, MyTribe Insurance, 2025
- Insurance Premium Tax: 12% standard rate (UK Government)
- No-claims discount transferability: Industry standard practice
Last updated: January 2026
This guide is for general information only. Always check the specific terms of any policy before switching.
Healthplan is a trading style of Sante Partners Ltd, authorised and regulated by the Financial Conduct Authority (FRN 914023).