What is the average cost of private health insurance in 2024?

Roman Danaev

19 December 2024

Private treatments offer some great benefits, but figuring out the private health insurance costs can be a bit tricky. The price isn’t the same for everyone — it depends on many factors. Where you live, your age, your medical history, and the specific options you choose all influence how much you’ll pay for coverage.

Once you get how health insurance works, it’s clear that there’s no one-size-fits-all solution. But there are some ways to predict approximately how much you’ll be paying.

how-much-does-health-insurance-cost

How much does private medical insurance cost per month?

Let’s put together three example health insurance plans with estimated costs. The premiums listed are for a 30-year-old living in Warwickshire who is purchasing health insurance for the first time.

Basic health insuranceMid-range health insuranceComprehensive health insurance
£22.25/month£38.73/month£94.23/month
This plan includes:
  • Inpatient coverage only
  • Core cover that includes comprehensive cancer treatment
  • Guided option
  • £500 excess
This option offers:
  • Inpatient coverage
  • Limited outpatient coverage for necessary treatments
  • Core cover with cancer care
This plan includes:
  • Inpatient coverage
  • Full outpatient coverage
  • Comprehensive cancer care
  • Mental health coverage
  • Access to regional hospitals, including some in London
  • £250 excess
  • Access to regional hospitals, including some in London
  • £250 excess
  • Dental and optical coverage
  • Coverage for therapies
  • Extensive hospital list, including all London hospitals
  • £0 excess

How do insurers compare on price?

The cost of private medical insurance changes a lot depending on the insurance company you choose.

Bear in mind that there isn’t one “cheapest” provider, as prices vary based on your age and where you live. It’s also worth noting that a company with slightly higher premiums might have better coverage for your needs.

Provider comparison: Basic plan (No outpatient cover)

Here are the approximate prices for the lowest tier of insurance coverage from major providers:

ProviderPremium per month
Aviva~£28
Axa Health~£38
Bupa~£36
Freedom~£34
The Exeter~£35
Vitality~£44
WPA~£10

These prices are for a 30-year-old looking to purchase a new policy.

Provider comparison: Comprehensive plan (With outpatient cover)

A typical comprehensive policy, including outpatient coverage, costs:

Provider

Premium per month

Aviva

~£59

Axa Health

~£51

Bupa

~£40

Freedom

~£57

The Exeter

~£51

Vitality

~£49

WPA

~£38

These prices are for a 30-year-old looking to purchase a new policy.

Average cost of PMI by age

The cost of private health premiums generally rises as you get older, and comprehensive plans usually cost almost twice as much as basic ones.

Age

Basic plan per month

Comprehensive plan per month

20-year-old

~£29

~£41

30-year-old

~£36

~£54

40-year-old

~£45

~£67

50-year-old

~£60

~£88

60-year-old

~£87

~£127

70-year-old

~£141

~£202

Average cost of PMI by location

Insurance companies adjust their prices according to your location within the UK. This is because the cost of private medical treatment varies greatly by region. For example, how much you pay for medical claims depends on the hospital you go to. Insurers also look at factors like how often claims are filed in specific areas and how many people have health insurance in those locations.

For context, the national average premium is £81.52, which is what you would expect to pay in Birmingham. If you live in Bournemouth, you might pay around 3% more. In Manchester, premiums are about 10% higher, and in London, they can be 24% higher.

In contrast, Oxford and Cambridge generally have premiums that are about 3% lower than the national average. Cardiff, Leeds, and Bristol offer premiums that are around 5% less, and Edinburgh has rates that are approximately 15% below the national average.

What impacts the cost of private medical insurance?

how-much-does-health-insurance-cost

Here’s what impacts private health insurance cost the most:

1. Your private health insurance cover level

The coverage details of your private healthcare policy have a big impact on your premiums. If you select a treatment-only plan, you’ll typically pay less each month. However, this means you can only make claims after getting a diagnosis from the NHS or if you cover the costs of private tests and consultations yourself.

On the other hand, if you choose a more comprehensive plan that offers benefits like unlimited outpatient care, mental health support, therapy sessions, and travel coverage, your premiums will be higher. In short, the more options you include in your policy, the more you’ll pay.

2. Your age

The cost of private health insurance is closely linked to your age, and this connection is quite logical. As we get older, our bodies become more prone to health problems, and it usually leads to more frequent and complicated medical care.

In later life, people are at a greater risk of serious illnesses like cancer, stroke, and heart disease. If you get treatment for these conditions in a private hospital, it’ll be expensive. Moreover, older individuals take longer to recover, which means longer hospital stays and larger claims.

3. Your claims history

Many people think health insurance discounts work like car insurance, where you start with no discount and build it up over time. In reality, with health insurance, you begin with a substantial discount right from the start.

When you first get a private health insurance policy, you usually receive a no-claims discount of about 65-70%. This is a great advantage, but this discount can change over time depending on whether you make any claims. If you do file a claim, your discount will decrease and lead to higher premiums later.

4. Cost of private medical treatment

Prices of private medical care tend to rise over time, which is known as medical inflation. For example, Statista reports that health-related products and services were 34.7% more expensive in 2024 than they were ten years ago.

Here’s why: medical advancements and ongoing research play a big role, but healthcare providers also face higher operating costs. Like any business, private hospitals have to cover expenses — rent, utilities, and insurance — which have all gone up in recent years. So, these rising costs affect insurance companies and result in higher premiums for policyholders like you.

5. Overall claims volumes

When insurers pay out more claims each year, it affects all policyholders. With the NHS under strain, more people are using their private medical insurance to avoid long waiting times. An increased demand leads to higher costs for insurers, hence higher premiums for everyone.

6. Whether you use nicotine products

If you smoke, vape, or use any nicotine products, your health insurance premiums will almost certainly be higher. Even though treatments like patches or gum are seen as safer than smoking, there isn’t sufficient long-term evidence to prove this. So, unless you quit using nicotine completely, expect to pay more for private health insurance.

Quitting will help both your health and your wallet in the long run.

Types of health insurance plans

You can categorise private medical insurance into three key parameters:

Basic vs. comprehensive plans

Basic plans provide essential coverage that focuses mainly on serious health issues and emergencies. They typically include services like hospital stays, necessary treatments, some diagnostic tests, and sometimes virtual GP services. However, these plans don’t offer additional services, such as outpatient care, preventive screenings, or mental health support.

Comprehensive plans, as you can guess, offer a wider range of services. These plans generally include both inpatient and outpatient coverage, preventive care, and often cover mental health services, prescription medications, and even wellness programmes. They come with higher monthly premiums because they protect against a broader array of health concerns.

Individual vs. family plans

Individual plans are tailored for a single person, which allows for customised coverage based on personal health needs, lifestyle, and budget. These plans are a more budget-friendly option for those who don’t anticipate needing a lot of medical services or have relatively few health issues. That said, there’s nothing limiting your coverage in an individual plan. It’s simply about the number of people covered under the policy.

As for family plans, they cover multiple members of a household under one policy. This option is generally more economical than purchasing separate plans for family members, especially when you factor in the discounts provided for bundling. Of course, the overall premium will be higher because you’re insuring more individuals under one policy.

Family plans cater to a range of health needs, from children requiring routine check-ups to adults needing more specialised care. The extent of coverage will vary depending on the specific policy and personal circumstances.

Inpatient vs. outpatient coverage

Inpatient coverage refers to the medical services you receive when you are admitted to a hospital. It can include surgeries, treatments that require an overnight stay, and intensive care services. This type of coverage is vital for addressing serious health conditions that need close monitoring and may involve significant medical interventions. Room and board, nursing care, and necessary medications while hospitalised are all covered.

Now, outpatient coverage applies to medical services where you don’t need to stay overnight in a hospital, including routine visits, check-ups, minor procedures, and diagnostic tests.

Many insurance plans offer a combination of both types of coverage. So, evaluate your health situation and anticipated medical needs when selecting a plan with balanced coverage.

Ways to lower your health insurance costs

how-much-does-health-insurance-cost

You can take several steps to lower the cost of private health. Consider what you really need from your coverage and adjust your policy to fit both your requirements and your budget.

Keep in mind that a cheaper plan might not offer all the coverage you need, so don’t make your decision based solely on price.

1. Choosing the right level of cover

It might be helpful to think about what you really need moving forward. Many people hesitate to change their policies because they worry about losing important benefits. However, you can save money without giving up too much coverage.

One way to do this is by setting benefit limits on your private medical insurance policy. For example, you could cap your annual outpatient allowance at £1,000. This will reduce your premiums while still providing you with essential coverage for outpatient services you might need.

2. Healthier lifestyle choices

Health insurance companies often look at your physical condition and habits when setting your premiums, so take steps to improve your wellbeing to see some savings. For example, if you eat a balanced diet, exercise regularly, and avoid smoking or excessive drinking, you may qualify for lower premiums. Most insurers even offer discounts or rewards for those who show a commitment to their health.

Plus, focusing on your health will help you steer clear of many medical issues in the future.

3. Increasing excess

One of the simplest ways to lower your insurance premiums is to raise your policy excess. It’s an easy adjustment that always leads to savings, but you should approach this option with some caution. After all, no one wants to deal with a large bill when they’re feeling unwell.

Also, be aware that if your treatment costs span two different policy years, you might end up paying the excess twice.

4. Shopping around and comparing providers

When you compare policies, you can find coverage that suits your needs without overspending. Different companies have varying rates, benefits, and coverage limits. For example, one provider might offer a lower premium with fewer services, and another could have a higher premium but provide comprehensive cover.

5. Remove supplementary cover

Sometimes, health insurance policies include extra features or optional coverages that you might not really need. It’s a good idea to take a close look at your policy to determine whether all those extras are actually beneficial for you.

For instance, you could have mental health coverage that you haven’t used and feel you no longer require, or there might be other add-ons that don’t suit your current circumstances.

6. Review your underwriting method

The two main types of underwriting you’ll come across are moratorium underwriting and full medical underwriting. Sometimes, switching your underwriting method will lower your premiums, which is great news. However, approach this change with care. Altering your underwriting method also affects what your policy covers, so carefully review any adjustments.

7. Add a 6-week wait

One option to think about is including a 6-week NHS wait clause in your policy. This means that if the waiting time for your treatment on the NHS is less than six weeks, you’ll choose to go with the NHS instead of using private care.

Additional costs to consider

When evaluating health insurance, you should also consider any additional costs that may come with your plan.

Out-of-pocket expenses

Health insurance doesn’t just involve monthly instalments. Often, you’ll need to budget for additional costs like deductibles, which are amounts you pay upfront for services before your insurance kicks in. You may also encounter co-payments, where you contribute a set amount per service, or coinsurance, where you cover a percentage of certain bills.

If you anticipate regular medical visits or treatments, these expenses add up and push the cost of private health insurance up.

Exclusions and waiting periods

Every health insurance plan has exclusions — services or treatments it won’t cover. These range from certain elective procedures to alternative therapies. On top of it, many policies have waiting periods, especially for pre-existing conditions, which require you to hold off for a specific timeframe (often six to 12 months) before coverage begins.

More about pre-existing conditions:

Always review exclusions and waiting periods to have a clear picture of what your plan will — and won’t — cover.

Optional add-ons and extras

Many policies offer optional add-ons, like dental, vision, or mental health coverage, to customise your plan to your needs. However, each add-on increases your premium, so you should assess whether these extras provide value for you.

For example, if you only need occasional dental care, a standalone dental policy might be more cost-effective. It all depends on the practicality of each add-on if you want to keep your premiums in check and still have the coverage you’re most likely to use.

Comparing health insurance providers

Comparing private health insurance providers is incredibly important because it helps you find the right plan. Different companies have various coverage options, costs, and customer service experiences. So, if you take the time to check out a few different providers, it’ll be easier to choose the best value for your money and your healthcare requirements.

Final words

Private health insurance is becoming more attractive, with many people having a hard time getting appointments with their NHS GPs or finding a dentist. While the government has promised to increase funding for the NHS, the issues are more complex than just funding. For many, this makes the cost of private medical insurance a sensible choice.

The average monthly cost of private health insurance is around £29-£141 for basic plans and £41-£202 for comprehensive plans (depending on the age). Bupa, WPA, and Vitality are some of the top providers of affordable plans, and location plays a big role in how insurance companies set their prices. However, it’s still a good idea to shop around because there are so many factors involved.

Our research methodology

Our findings are based on a careful study of the costs related to new private health insurance policies. The research sample included diverse demographics and age groups, as well as different types of policies for a comprehensive view of the market. We considered various factors like locations, insurers, policy configurations, and more.

FAQ

Is private health insurance necessary in the UK with the NHS available?

No, the NHS offers healthcare services that you can access without any payment. However, many people choose private health insurance for quicker access to treatment, shorter waiting times, and more options for specialists and facilities.

How much does health insurance cost for a family compared to an individual?

The cost of private health insurance for a family is typically higher than for an individual because it covers multiple people. The difference is about £80-85 more per month for the family.

Can I reduce my premium by living a healthier lifestyle?

Yes, living a healthier lifestyle can help reduce your premium. Also, you can lower your costs by choosing the right level of coverage, increasing your excess, removing any unnecessary supplementary cover, and more.

What are deductibles and excess, and how do they affect my premiums?

Deductibles and excess are the amounts you pay before your insurance starts covering costs. Typically, a higher deductible or excess leads to lower premiums since you take on more financial responsibility.

Are there any hidden costs I should be aware of when buying health insurance?

There may be. For example, co-payments for specialist visits, charges for out-of-network providers, and costs for specific treatments or medications that aren’t fully covered. Also, some policies may have waiting periods before coverage begins for certain services.

Is it possible to switch health insurance providers, and what should I consider when doing so?

Yes. When considering a switch, think about the new plan’s coverage options, premium costs, deductibles, and any waiting periods for pre-existing medical conditions. Make sure your current hospitals are in-network with the new insurer, and check if there are any fees for leaving your current plan.