Christmas is just around the corner, and for many households, the cost of presents, food and festive plans can put extra pressure on the monthly budget. If your private medical insurance renewal is also creeping up, you might be wondering whether it’s still worth the cost.

The good news is that you may not have to choose between keeping your cover and keeping your costs under control.

Private medical insurance (PMI) premiums can rise for several reasons, including rising treatment costs, your age, and your level of cover. The Association of British Insurers reported that insurers paid a record £4 billion in health insurance claims in 2024, an increase of 13% on the previous year. More people are also using their cover, putting further pressure on insurers’ costs.

You can read more in the Association of British Insurers’ health and protection insurance information (Source: https://www.abi.org.uk/policy-and-guidance/general-insurance/health-protection-insurance/).

Could a few changes make your cover more affordable?

If your renewal quote is higher than expected, review your policy before deciding to cancel. There may be ways to reduce the premium while keeping the benefits that matter most to you.

  • Consider increasing your excess. A higher excess can reduce your premium, but make sure you could comfortably afford it if you needed treatment.
  • Review your hospital list. If you don’t need access to every hospital on the list, a more restricted network could help reduce the cost.
  • Check your outpatient cover. Your policy may cover consultations, diagnostic tests and scans up to a set limit. Adjusting this level of cover could lower your premium, although it may mean you pay more yourself for some appointments and tests.
  • Ask about a six-week NHS option. This can reduce the premium, but it may not be suitable if quick access to private treatment is one of your main reasons for having insurance.

Before making changes, think about why you took out private medical insurance in the first place. Perhaps it was to access eligible treatment faster, choose your specialists, or reduce the worry of a large private medical bill.

With Christmas spending on the horizon, now is a good time to check whether you’re getting the right value from your private medical insurance. If your renewal is approaching, or your premiums have increased, we can help you review your options. A little time spent reviewing your policy now could help you keep the cover that matters while freeing up budget room for the festive season.