What Happens at Renewal Time? The Private Medical Insurance Trap to Avoid

When you first take out private medical insurance, it can feel like a huge relief. You’ve done your research, chosen your cover, and you’re ready for peace of mind. But there's one moment many people forget to plan for: renewal time. And that’s where things can get tricky.

Every year, thousands of people unknowingly fall into a common trap — sticking with the same insurer without checking if it’s still the best option. Here’s what actually happens when your policy comes up for renewal, why costs tend to rise, and how to avoid overpaying or getting caught out by changes in your cover.

A focused professional woman analyzes financial documents at her desk, illustrating a busy work environment with a laptop and calculator at hand.

Why Renewal Time Matters

Most private medical insurance policies in the UK last for 12 months, after which they automatically renew — usually at a higher premium.

It’s easy to let that renewal slip by unnoticed. You may get a letter or email from your insurer with the new price, and if you don’t respond, your policy continues. Simple, right?

Unfortunately, that simplicity can come at a cost.

The Common Pitfall: Premium Creep

Many people assume that if nothing in their health has changed, their premium should stay the same. But in reality, most insurers increase your premium each year, even if you haven’t made a claim.

This is often referred to as “premium creep” — gradual price increases that add up over time. It’s usually blamed on factors like:

• Medical inflation (rising treatment costs)

• Age-related risk (you’re older, so potentially more likely to claim)

• Broader changes in insurer pricing models

And if you’ve made a claim? You can expect that increase to be even higher.

What Your Insurer Won’t Always Tell You

Here’s the catch: insurers are not obligated to automatically offer you the best deal — or even tell you if better, more suitable policies are available elsewhere.

What’s more, your policy terms might subtly shift at renewal. For example:

• Hospital lists may change

• Excesses might be increased

• Cover limits could be adjusted

• Your policy might switch to ‘No Claims Discount’ models, which penalise you for claiming

You could be paying more — for less cover — without realising it.

So, What Should You Do at Renewal?

If you’re approaching your renewal date, here are a few important steps to take:

1. Review Your Renewal Letter Carefully

Don't just glance at the new price. Check if there have been any changes to your benefits, cover levels, or hospital lists.

2. Get Comparative Quotes

See what other insurers are offering for similar cover. But be warned — comparing policies like-for-like isn’t easy, especially when each one has different terms and exclusions.

3. Speak to a Broker

This is where things really get easier. A specialist broker can:

• Analyse your current policy and explain what’s changed

• Check the whole market to find better-value alternatives

• Negotiate with your existing insurer (they often respond better to brokers than individuals)

• Manage the switch if it makes sense to move

  
  

Best of all? It doesn’t cost you anything extra to use a broker like Assure-U International. Their fee is covered by the insurer, not added to your bill. Please note that some other brokers may charge admin fees.

Why Most People Don’t Shop Around (But Should)

Life is busy, and comparing insurance policies isn’t anyone’s idea of fun. Many people just let their policies roll over to avoid the hassle.

But sticking with the same insurer year after year can mean you miss out on:

• Introductory offers or no-claims incentives

• Updated policies with better cover

• More competitive pricing available elsewhere

Brokers keep track of all these changes, so you don’t have to.

Real Talk: Is It Ever Better to Stay?

Yes — sometimes. If your policy has been in place for some time and covers your pre-existing conditions, switching could mean losing access to those benefits.

But again, this is where a broker becomes invaluable. They can tell you when switching is smart and when staying put is safer, so you don’t make a costly mistake.

Renewal time is your once-a-year chance to take control of your private medical insurance. 

Don’t waste it.

Letting your policy auto-renew might seem easier in the moment, but it could mean paying more for less cover — or missing out on better deals entirely.

Whether you’re happy with your current insurer or not, it’s worth speaking to a broker who can review your options, challenge price hikes, and help you make a fully informed decision.

Need help reviewing your policy before it renews?

Speak to one of our friendly health insurance brokers today — we’ll help you stay protected without overpaying.